Today’s Nifty 50 market performance showcased a day of volatility and shifting sentiment. The index opened near the 23,550 mark, maintaining strength early on, but soon faced selling pressure that broke the robust 23,500 support level. This sharp decline pushed the index down by nearly 150 points, hitting an intraday low of 23,344.35. However, renewed bullish momentum, driven primarily by strength in the IT sector, attempted to bring the market back above the 23,500 level. This effort demonstrated resilience as the market clawed back significant ground but remained constrained by overall bearish sentiment.
Ultimately, Nifty 50 closed below the crucial 23,500 support level at 23,440, turning the previous support into a resistance level. With this critical shift, the index now faces challenges in reclaiming higher levels, and the breached 23,500 is likely to act as a ceiling in the near term. Analysts anticipate further downside, with the index potentially targeting the 22,700-22,800 range in the coming sessions. Market participants will be closely monitoring global cues and sectoral performances for hints of stabilization or further downward movement.
| Open | 23,551.90 | High | 23,596.60 | Low | 23,344.35 |
| Prev close | 23,526.50 | 52-wk high | 26,277.35 | 52-wk low | 21,137.20 |
The broader market indices showed mixed sentiment with clear divergence across sectors. Nifty IT surged by an impressive 3.44%, closing at 44,609.50, while other indices came under selling pressure. Nifty Infra and Nifty Metal dropped by 1.16% and 1.62%, respectively, pointing to weakness in industrial and commodity-linked sectors. Bank Nifty slipped 1.55% to end at 48,734.15, and FinNifty also declined by 1.29%, underscoring the bearish trend in the financial space. Midcap and small-cap indices saw heavy profit-booking, with Nifty Midcap 100 and Nifty Smallcap 50 tumbling over 2%. The stark sectoral divergence, driven by IT’s strength and broad weakness elsewhere, adds complexity to the market’s near-term outlook.
Broader Market Trend (Midcap and Smallcap Trend)
The broader markets experienced significant selling pressure, with most indices closing deep in the red. Nifty MidSmall 400 dropped by 425.70 points (-2.18%), and Nifty Midcap 150 declined by 421.30 points (-2.04%), reflecting widespread profit-booking in the mid and small-cap segments. Similarly, Nifty Midcap 100 shed 1,160.15 points (-2.08%), while Nifty Smallcap 50 fell sharply by 221.20 points (-2.57%), indicating bearish sentiment across broader indices. Nifty 100 also lost 167.55 points (-0.69%), mirroring the overall downtrend in the market.
However, Nifty IT emerged as a bright spot, surging 1,483.05 points (+3.44%) to close at 44,609.50. This exceptional performance was driven by robust buying in IT stocks, likely supported by favorable global trends and positive investor sentiment towards the sector. While the broader market grappled with selling pressure, the strength in Nifty IT provided some support, showcasing its resilience amid a turbulent trading session.
Major factors affecting today’s market
The global markets, particularly the Dow Jones and NASDAQ, were in the negative zone, showing a bearish trend. This sentiment was further amplified by the Bank Nifty, which dropped below 4900 and closed in the red, adding to the pessimism in the market. The continuous rise in crude oil prices added pressure, contributing to the overall negative outlook. Both Nifty Smallcap and Nifty Midcap stocks also followed the downward trend, reflecting a broader market downturn.
Market participants are increasingly concerned about the policies that Donald Trump may introduce after taking oath on January 20, further heightening global uncertainty. In addition, Foreign Institutional Investors (FII) have been persistently selling stocks and F&O in the Indian market, with a net sell of ₹21,357.46 crore in January 2025. Retail investors have also joined the sell-off in panic, leading to a further erosion in market confidence.
Market Predictions for Tomorrow
The Nifty 50 closing below 23,500 is a concerning sign, especially as it also closed below both the 200 EMA and 50 EMA. This indicates a bearish trend, and if the index fails to recover and break above 23,500 on Monday, it could test the 22,700 level in the coming days. The market remains under pressure, and there’s little positive news to drive an upward movement. Additionally, the valuation of small-cap and mid-cap stocks remains high, which could weigh on the broader market and push it further down, making it difficult for any significant recovery in the near future. Overall, the market sentiment continues to be negative, with the possibility of further declines as the selling pressure mounts.
While the broader market remains bearish, there are a few positive signals in individual stocks. TCS has reported its quarterly results in line with expectations, providing some stability to the market. On the 13th, HCL Technologies will announce its Q3 results, which are expected to be as strong as TCS’s performance. This could provide a much-needed boost to the Nifty 50 and the Nifty IT sector, offering some hope in an otherwise challenging market environment. However, for the broader market to turn positive, these signs would need to translate into a more widespread recovery, which currently looks uncertain.
Nifty 50 Prediction for tomorrow
NifNifty 50 may experience further downside as it has crossed both the 1-year-old trendline and the crucial 23,500 level. If the index fails to recover, this could signal continued bearish pressure. The inability to hold above this level could push the index lower, as there is no immediate positive trigger to reverse the trend.
Key levels to watch in Nifty 50:
Buying levels: The first buying level is above 23,500 after a breakout, with the target possibly reaching 23,700. However, it’s crucial to avoid buying if Nifty 50 opens below 23,500 as this may indicate further downside pressure. The second buying level is above 23,350, especially if the index shows signs of a reversal.
Selling levels: The first selling level is below 23,500, especially if Nifty 50 fails to cross and sustain above this level. The second selling level is below 23,300, particularly after a breakdown and proper retesting of this level.
For buying, wait for Nifty 50 to cross and retest the 23,350 level or to show strength above 23,500 after a breakout. Be cautious and use proper stop-loss strategies, ensuring clear targets to manage risks effectively. For selling, it’s advisable to wait for Nifty 50 to fail at 23,500 and show signs of further weakness, ensuring that any trades are backed by solid risk management through stop-loss and target setting.
| 1st Buying level | 2nd Buying level | 1st Selling level | 2nd selling level |
| Above 23,500 | Above 23,350 | Below 23,500 | 23,300 |
Bank Nifty Prediction for Tomorrow
Tomorrow, Bank Nifty could experience further downside as it has crossed the 1-year-old trendline and the 49,000 level, which may lead to panic selling in the index. The bearish sentiment in Bank Nifty remains strong, and with PSU banks continuously falling, there are no clear buying levels unless we see positive results from the banking sector. It’s better to focus on selling on every rise, as this strategy could yield good profits, but always ensure to use proper stop-loss to manage risks effectively.
Buying levels: The first buying level is above 48,500 after a breakout, but be cautious and give the market a stop-loss to exit the trade if it reverses.
| 1st Buying level | 2nd Buying level | 1st Selling level | 2nd Selling level |
| Above 48,500 | No Buying until Q4 result of HDFC or SBI. | Sell on every rise. | Sell on every rise, |
Overall Market outlook for Tomorrow
The broader markets faced intense selling pressure, with indices like Nifty Mid Small 400 (-2.18%), Nifty Midcap 150 (-2.04%), and Nifty Small cap 50 (-2.57%) witnessing significant declines due to profit-booking. Nifty Infra, Nifty Metal, and financial indices like Bank Nifty and Fin Nifty also closed sharply lower, reflecting overall bearish sentiment. However, Nifty IT stood out as the only sector showing strong resilience, surging by 3.44% (+1,483.05 points) to close at 44,609.50, driven by positive momentum in IT stocks. This divergence highlights the stark contrast between the broader market’s weakness and IT’s bullish performance.
The overall market outlook remains bearish, with no immediate positive triggers to reverse the current downtrend. Global markets are showing weakness, and the continued selling by foreign institutional investors (FII) in the Indian market adds to the pressure. Domestic factors, such as high valuations in small and mid-cap stocks and concerns over Bank Nifty’s performance, further contribute to the negative sentiment. In the absence of any significant bullish catalysts, market participants may remain cautious, with further declines possible unless there’s a strong recovery or positive news, particularly from the banking sector. Traders should focus on risk management strategies and look for selling opportunities on rallies, while being prepared for further volatility.
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