Quote on Pre-market comment for Friday Jan 23 by Hitesh Tailor, Research Analyst, Choice Broking
Below the Quote on Pre-market comment for Friday Jan 23 by Hitesh Tailor, Research Analyst, Choice Broking
Indian equities are expected to open on a flat to mildly negative note on January 23, with GIFT Nifty indicating a start around 25,338, nearly 11 points lower. While near-term sentiment remains guarded, underlying domestic technical indicators continue to offer some support. However, the broader market direction is likely to remain influenced by global equity cues, movements in crude oil prices, and trends in institutional fund flows.
The Nifty 50 opened strong in the previous session and touched an intraday high of 25,435 but failed to sustain higher levels due to selling pressure at elevated zones. The index slipped below the 25,300 support, hit an intraday low of 25,168, and eventually closed at 25,289.90, indicating weak follow-through buying at higher levels. However, the Nifty managed to hold above its 200-day DEMA, highlighting underlying support. Immediate resistance is placed in the 25,400–25,450 zone, while key support is seen at 25,100–25,150. The daily RSI at 33.82 continues to trend upward, signaling a mild improvement in momentum despite remaining in oversold territory.
The Bank Nifty also opened on a strong note and surged nearly 850 points to an intraday high of 59,573.10 before witnessing profit booking that dragged the index below the 59,000 mark to an intraday low of 58,823. The index later recovered to close at 59,200, indicating buying interest on declines and a phase of positive consolidation. Resistance for the index is placed at 59,500–59,600, while key support lies at 58,900–59,000. The daily RSI at 47 is rising, suggesting improving momentum, though traders are advised to wait for a decisive breakout before initiating fresh positions.
On January 22, Foreign Institutional Investors were net sellers in the equity market, offloading shares worth approximately Rs 2,549 crore. In contrast, Domestic Institutional Investors provided strong support by purchasing equities worth around Rs 4,222 crore.
Amid persistent global uncertainty, traders are advised to remain selective and disciplined, focusing on fundamentally strong stocks during market declines. Fresh long positions should be considered only after a confirmed and sustained breakout above the 25,700 level on the Nifty.
Above views are of the author and not of the website kindly read disclaimer
