Market Outlook for 20th January 2024

Ruchit Jain Ruchit Jain

Last Updated: 19th January 2024 - 04:37 pm

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Post the sell-off in the last few sessions, Nifty started Friday’s session on a positive note. The index traded within a range after opening and ended the day above 21600 with gains of three-fourth of a percent.

Nifty Today:

Nifty witnessed a recovery in the last trading session of the week, but the data has not turned positive yet. The sell-off in the last few sessions was mainly because of FIIs selling the cash segment and forming short positions in the index futures segment too. Their new positions have gone below 50 percent which indicates their short term bearish stance. Now the data looks negative, but since the RSI readings on the lower time frame charts were oversold, Friday’s move seems to be a pullback move to relieve the oversold set ups. But since the index has formed a lower low on the charts, it is possible that the up move would face selling pressure at higher levels. The retracement resistances on the charts are around 21700 and 21800. Thus, it would be crucial to see market momentum at these levels and looking at the data, we advise trades to lighten up longs on pullback move near the resistance. On the flipside, 21500 will be seen as the immediate support as the put option at this strike price has the highest open interest. Below 21500, the index can resume its negative momentum.

                                                      Recovery seen in indices, but FIIs turn bearish

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  Nifty Levels Bank Nifty Levels FINNIFTY Levels
Support 1 21530 45400 20330
Support 2 21480 45150 20240
Resistance 1 21700 46150 20560
Resistance 2 21800 46500 20700
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