The Nifty 50 began the session on January 9, 2025, with a significant gap-down opening at 23,674.75, reflecting bearish sentiment. The index failed to recover and continued its downward trajectory throughout the trading session. After an early attempt to stabilize near the 23,600 level, selling pressure intensified, dragging the index lower. By mid-session, the index slipped below 23,550, marking the day’s low at 23,503.05. The lack of buying interest and persistent bearish momentum weighed heavily on the market.
Despite minor intraday bounces, the index struggled to regain ground and closed at 23,526.50, down by 162.45 points or 0.69% from the previous close of 23,688.95. The weak session indicated negative sentiment, with Nifty failing to breach significant resistance levels. The broader market movement suggests cautious investor sentiment amidst external and domestic concerns.
| Open | 23,674.75 | High | 23,689.50 | Low | 23,503.05 |
| Prev close | 23,688.95 | 52-wk high | 26,277.35 | 52-wk low | 21,137.20 |
The broader market witnessed a sharp sell-off across all major indices, reflecting widespread bearish sentiment. Nifty IT led the decline, falling 1.16% and shedding 507.80 points, followed by Nifty Metal, which dropped 1.23%. Bank Nifty and FinNifty also faced pressure, losing 0.67% and 0.90%, respectively, as financial stocks underperformed. The midcap and smallcap indices weren’t spared, with Nifty Midcap 100 down 0.93% and Nifty Smallcap 100 sliding 1.35%. Even the Nifty Next 50, representing the next tier of large-cap stocks, tumbled 1.27%. This broad-based weakness suggests a cautious approach by investors amidst global uncertainties and subdued domestic cues.
Broader Market Trend (Midcap and Smallcap Trend)
The broader market faced significant selling pressure, with all major indices ending the session in the red, signaling widespread bearish sentiment. The Nifty IT index led the decline, dropping 1.16% or 507.80 points, driven by weak performance in technology stocks. Nifty Metal followed closely, losing 1.23%, as concerns over global demand weighed on the metal sector. The financial sector indices, including Bank Nifty and FinNifty, were not immune to the sell-off, with Bank Nifty shedding 0.67% and FinNifty falling 0.90%, reflecting muted investor interest in banking and financial services. These declines highlight a cautious stance by market participants amid rising global uncertainties and weak domestic triggers.
Midcap and small-cap stocks also faced the brunt of the sell-off, with Nifty Midcap 100 dropping 0.93% and Nifty Small Cap 100 plunging 1.35%. Broader indices like Nifty Midcap 150 and Nifty MidSmall 400 lost 0.80% and 0.93%, respectively, indicating pressure across segments. Even the Nifty Next 50, representing emerging large-cap stocks, tumbled 1.27%, reflecting poor sentiment in the broader market. The consistent decline across various indices suggests a lack of buying support and heightened investor caution, likely influenced by macroeconomic challenges and global market trends.
Major factors affecting today’s market
Global markets traded in negative territory, with Dow Jones and NASDAQ showing bearish trends. Rising US treasury yields, which hit 4.7% despite a rate cut by the Federal Reserve, added to the negative sentiment. Crude oil prices continued their upward trend, putting additional pressure on markets. In India, Nifty Smallcap and Nifty Midcap indices also dragged the markets lower, amplifying the bearish mood.
Investors remain cautious about the policies Donald Trump might introduce after taking the oath on 20th January. Foreign Institutional Investors (FIIs) have been consistently selling stocks and futures & options in the Indian market, further dampening sentiment. This persistent FII outflow reflects concerns over global uncertainties and the impact on emerging markets like India.
Market Predictions for Tomorrow
Nifty 50 closing above 23,500 is a positive development, but the index’s position below the 200 EMA and the bearish crossover of the 20 EMA below the 200 EMA indicate ongoing weakness. This technical setup brings bearish sentiment, suggesting limited upside potential in the near term. Additionally, the high valuations of small-cap and mid-cap stocks continue to pose risks, likely dragging the broader market into negative territory.
TCS’s results, announced today, showed a 5.5% YoY revenue growth but a QoQ decline, while profits jumped by 11% YoY and 4% QoQ. The increase in EPS is a positive signal, and it may lend some strength to Nifty 50, potentially keeping it in positive territory tomorrow. However, with overall bearish sentiment prevailing and uncertainty around Donald Trump’s policies, the broader market is expected to remain under pressure. A sell-on-rise strategy may still be advisable in the current environment.
Nifty 50 Prediction for tomorrow
Nifty 50 closed near its crucial support level of 23,500, which might act as a strong base for a rebound. If it holds this level, we could see a recovery towards higher levels tomorrow. However, failure to sustain it may lead to further downside pressure.
Key levels to watch in Nifty 50:
- Buying levels: First at 23,500 and second at 23,350 after a breakout. If Nifty 50 crosses 23,500, the target could be 23,700. Avoid buying if it opens with a gap-up above 23,700.
- Selling levels: First at 23,350 if it fails to retest this level, and second at 23,700 after a breakdown and proper retesting.
For buying, wait for Nifty 50 to cross 23,350 and retest it, or buy near 23,500, which is a robust support. Always use proper stop-loss, set clear targets, and trail them to maximize gains while managing risks. Keep in mind the TCS Q3 results, as they align with expectations and may influence market sentiment.
| 1st Buying level | 2nd Buying level | 1st Selling level | 2nd selling level |
| Above 23,500 | Above 23,350 | Below 23,500 | 23,780 |
Bank Nifty Prediction for Tomorrow
Bank Nifty closed below its crucial support level, crossing a one-year-old trendline, which indicates further downside pressure. If it manages to regain 49,700, a recovery might be on the cards, but if it fails, the bearish trend may continue.
Key levels to watch in Bank Nifty:
- Buying levels: First above 49,700 after a breakout, with a target of 49,950. Avoid buying if it opens with a gap-up above 49,700. Second buying level is above 49,950 after a breakout and retest.
- Selling levels: First below 49,300 after a retest of 49,700, and second at 49,300 after a breakdown and proper retesting.
For buying, wait for Bank Nifty to cross 49,300 and retest it, or buy above 49,700 with proper stop-loss. For selling, sell below 49,300 as it can act as strong resistance. Always use proper stop-loss, set clear targets, and trail them to manage risks effectively.
| 1st Buying level | 2nd Buying level | 1st Selling level | 2nd Selling level |
| Above 49,700 | Above 49,950 | Below 49,700 | 49,300 |
Overall Market outlook for Tomorrow
The overall market outlook for tomorrow remains cautious, with a bearish sentiment prevailing across indices. Nifty 50’s close above 23,500 is a positive sign, but its position below the 200 EMA, coupled with the 20 EMA crossing below the 200 EMA, continues to signal weakness. Small-cap and mid-cap valuations remain elevated, which could drag the broader market further into negative territory. Investors should adopt a “sell on rise” strategy, as market sentiment may stay subdued until clarity emerges on global cues, particularly with Donald Trump’s upcoming inauguration.
Bank Nifty has broken a one-year-old trendline, suggesting further downside pressure unless it reclaims critical levels. TCS’s Q3 results, which showed YoY revenue growth and profit increases, may provide short-term positivity for specific stocks, but broader market movements are likely to remain under pressure due to global factors such as rising crude oil prices, treasury yields, and continuous FII selling. Traders are advised to remain cautious, follow key levels with strict stop-losses, and trail targets to manage risks effectively in this volatile environment.
Read our other articles(IPO Insights)
- FII DII Selling Data, 27 January 2025
- FII DII Selling Data, 24 January 2025
- FII DII Selling Data, 23 January 2025
- FII DII Selling Data, 22 January 2025
- CLN Energy IPO GMP today – Apply or Not
Leave a Reply