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Below the Quote on Pre-Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking

The benchmark Sensex and Nifty indices are expected to open negative on Jan 23, following GIFT Nifty trends indicating a gain of 63 points for the broader index.

After a negative opening, Nifty can find support at 23,050 followed by 22,950 and 22,800. On the higher side, 23,250 can be an immediate resistance, followed by 23,350 and 23,500.

The charts of Bank Nifty indicate that it may get support at 48,500 followed by 48,200 and 47,800. If the index advances further, 48,900 would be the initial key resistance, followed by 49,200 and 49,500.

The Foreign institutional investors (FIIs) extended their selling on the 14th day as they offloaded equities worth Rs 4,026 crore on January 22, on the other hand, domestic institutional investors bought equities worth Rs 3,500 crore on the same day.

INDIAVIX was negative Yesterday down by 1.66% and is currently trading at 16.7725.

Yesterday, the Indian markets experienced a highly volatile session. Selling pressure from higher levels dragged the Nifty index near the previous day's low. However, buying activity from lower levels in the later session helped the market recover, leading to a close around the 23,150 mark. Global markets traded on a positive note, but Foreign Institutional Investors (FIIs) remained net sellers, raising concerns about the sustainability of the upward momentum. On the downside, the Nifty could test 22,800, followed by 22,500 levels, as the index continues to face selling pressure from higher levels. A breach below the 23,000 mark would be concerning. On the upside, immediate resistance is seen at 23,300, with the 23,500 level acting as a significant hurdle. Given the prevailing volatility, traders are advised to exercise caution, implement strict stop-loss strategies, and avoid carrying long positions overnight unless the Nifty index trades above the 23,500 mark to manage risk effectively.

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