STWP Daily Market Insights: Nifty, Banknifty & Finnifty - 21.01.2025

The markets today are keeping traders on their toes, with significant action across the board. As we analyze today's price movements and anticipate tomorrow's direction, we see critical support and resistance levels that will determine the trend. Let’s dive into the details for Nifty, Banknifty, and Finnifty, and uncover what might come next.

NIFTY: Today's Overview

Nifty closed the day at 23,344.75, showing a slight increase from yesterday's close of 23,203.20. The index touched a high of 23,391.10, surpassing the previous day's high of 23,292.10, but faced some resistance at that level. The low of the day was 23,170.65, which was above the previous day's low of 23,100.35, signaling moderate bullishness. However, the Nifty remains in a tight range with resistance levels above, signaling cautious optimism for tomorrow.

EMA Analysis

The Nifty continues to trade below its key moving averages, with the EMA 50 at 23,913.68, EMA 100 at 24,078.52, and EMA 200 at 23,668.73. The fact that it’s holding below the 50 EMA indicates that the index is still facing some headwinds. However, a break above the 23,434 resistance level could signal a potential upward push toward higher EMAs in the coming sessions.

Support & Resistance

The key support for Nifty lies at 23213, 23082, and 22993 with a possible slide downwards to 22500 levels. On the upside, resistance is expected at 23434, followed by 23523 and 23654,  further moving possibly towards 23500 and above. Watch for price action near these levels to determine if a breakout or reversal will take place.

Other Important Levels

Nifty’s No Trade Zone is between 23,161.94 and 23,276.62, and the possible reversal levels on the top range are near 23,485.33 to 23,534.23, while on the downside, a reversal could happen near 22,953.57 to 22,904.67.

Possible View for Tomorrow

Expect some consolidation in the 23,170 - 23,391 range. A breakout above 23,434 could lead to a rally toward 23,523 and 23,654. On the downside, a breach of 23,170 might trigger further selling towards the 22,953 - 22,904 levels.

BANKNIFTY: Today's Overview

Banknifty showed strong momentum, closing at 49,350.80, up from 48,540.60 yesterday. The high of the day was 49,650.60, which broke above the previous high of 49,047.20. The low for the day was 48,683.30, signaling that the index is gaining ground. Despite facing resistance at higher levels, the index managed to close near the day's highs, pointing to a positive short-term outlook.

EMA Analysis

Banknifty is significantly above its key EMAs, with the 50 EMA at 50,871.40, the 100 EMA at 51,098.27, and the 200 EMA at 50,358.26. This suggests that Banknifty is in a bullish phase in the medium term. The short-term challenge will be overcoming immediate resistance at 49,773 and 50,195.

Support & Resistance

Support for Banknifty is seen at 48,806, 48,261 and 47839 with a possible further downside risk toward the 47000 levels. Resistance is expected at 49,773, 50,195, and 50,740. The index could see a pullback if it fails to sustain above these levels or else could possibly move towards 50500.

Other Important Levels

Banknifty’s No Trade Zone lies between 48,141.85 and 49,065.35. Reversal levels to watch on the upside are 50,127.21 and 50,376.03, while on the downside, pay attention to 47,421.74 and 47,172.92 for a potential trend reversal.

Possible View for Tomorrow

The market is likely to see continued strength, but a close watch is needed on 49,773 and 50,195. A breakout above these levels could drive Banknifty toward higher resistance, while a pullback towards 48,806 could offer support for a buying opportunity.

FINNIFTY: Today's Overview

Finnifty closed at 22,926.70, showing strength from the previous day’s close of 22,608.20. It touched a high of 23,025.50, surpassing the previous high of 22,839.30. The low for the day was 22,638.90, above the previous low of 22,518.30, signaling that the index is in a positive short-term trend. Finnifty is exhibiting strength in the face of resistance.

EMA Analysis

The 50 EMA for Finnifty stands at 23,590.70, the 100 EMA at 23,583.81, and the 200 EMA at 23,050.02. While Finnifty is still below the 50 EMA, it has recently shown signs of strength as it approaches key resistance levels. A close above 23,089 and 23,250 could open the door for further gains.

Support & Resistance

Key support for Finnifty lies at 22702, 22477 and 22315. Further downside possible risk exists at the 22000 levels. On the upside, resistance is likely at 23,089, 23,250, and 23,475 paving the way possibly towards 23500 levels.

Other Important Levels

Finnifty’s No Trade Zone is between 22,580.24 and 22,802.54. Reversal levels on the top are seen at 23,207.07 and 23,301.87, while the bottom reversal levels lie at 22,176.38 and 22,081.58.

Possible View for Tomorrow

The Finnifty index could consolidate within the 22,702 - 23,025 range, with a breakout above 23,089 potentially leading to further upside towards 23,250. Watch for signs of resistance near 23,250, while a dip below 22,702 could signal weakness toward 22,477.

Analysis

Today’s market action shows mixed sentiment across Nifty, Banknifty, and Finnifty. As we move into tomorrow, pay close attention to the key levels mentioned for each index. Breakouts and reversals are possible, and staying within the No Trade Zones could be risky. Keep monitoring the levels to catch the trend early.

Watch for Possible Short Term Trade

Watch for Possible Positional Trade