STWP Daily Market Insights: Nifty, Banknifty & Finnifty - 22.01.2025
"As the markets tread cautiously, traders and investors find themselves at a crossroads—will the consolidation break to new highs, or are deeper corrections lurking around the corner? Today's market movements in Nifty, Banknifty, and Finnifty reveal critical insights that could shape tomorrow's trading strategies."
Nifty: Today's Overview
Nifty closed at ₹23,024.65, slightly down from the previous day’s close of ₹23,344.75. The index made a high of ₹23,426.30, which was just shy of breaking through the previous high of ₹23,391.10. The day’s low was ₹22,976.85, indicating that Nifty faced some pressure during the session. While the overall sentiment wasn’t overly bullish, the index maintained its position within a narrow range, showing signs of consolidation. The price action today was within the broader range set over the last few days, suggesting that Nifty is still searching for its direction.
EMA Analysis
Nifty is still trading below its key moving averages, with the 50 EMA at ₹23,878.80, the 100 EMA at ₹24,057.65, and the 200 EMA at ₹23,662.35. The index is holding below the 50 EMA, signaling that short-term bearish pressure remains. However, the index is approaching key resistance levels near ₹23,308.35, which aligns closely with the 50 EMA. A break above this level could lead to further upside, while any rejection could lead to a re-test of lower support levels.
Support & Resistance
For Nifty, the immediate support lies at ₹22,858.90, with additional support at ₹22,693.15 and ₹22,409.45. On the upside, resistance levels are located at ₹23,308.35, followed by ₹23,592.05 and ₹23,757.80. Given the current price action, a breakout above ₹23,308.35 could lead to a potential move toward the next resistance levels. Conversely, if the price fails to sustain above ₹23,308, it could retrace back toward the support levels.
Other Important Levels
The No Trade Zone for today was between ₹23,276.18 and ₹23,126.52. Nifty stayed above the lower boundary of this range, but any movement into this zone tomorrow could indicate a lack of clear direction. The possible reversal levels to watch for tomorrow are ₹23,612.37 and ₹23,548.55 on the upside, while on the downside, key reversal levels are ₹22,854.60 and ₹22,790.78.
Possible View for Tomorrow
Looking ahead to tomorrow, Nifty is likely to remain in a tight range between ₹22,976.85 and ₹23,426.30. A breakout above ₹23,308.35 could trigger a bullish move toward ₹23,592.05 and ₹23,757.80. On the other hand, if Nifty falls below ₹22,976.85, it could test lower support at ₹22,858.90 and ₹22,693.15. Traders should keep an eye on these levels for possible signals of the next big move.
Banknifty: Today's Overview
Banknifty closed at ₹48,570.90, showing a minor decline from yesterday’s close of ₹49,350.80. The index hit a high of ₹49,543.15 during the day but couldn’t maintain the upward momentum and pulled back to close closer to the daily low of ₹48,430.95. Today’s price action suggests some hesitation in the sector, as Banknifty struggles to break past the immediate resistance. The daily range of ₹48,430.95 to ₹49,543.15 is relatively wide, indicating that there is still some volatility in the index.
EMA Analysis
Banknifty remains below the 50 EMA of ₹50,781.20 and the 100 EMA of ₹51,048.20, which are acting as resistance levels. The 200 EMA is at ₹50,340.75, indicating that the index is still facing significant resistance from these key moving averages. A sustained breakout above these EMAs would likely signal a bullish trend, but for now, Banknifty is in a consolidation phase. Until we see a clear break above the 50 EMA, the upside may remain capped.
Support & Resistance
Banknifty has key support at ₹48,153.52, followed by ₹47,736.13 and ₹47,041.32. On the resistance side, the immediate level to watch is ₹49,265.72, followed by ₹49,960.53 and ₹50,377.92. Given the current price action, the focus is on the resistance zone around ₹49,265.72 and the support near ₹48,153.52. A break above the resistance could see the index testing the next levels, while a failure to hold above support could trigger a pullback towards the lower support levels.
Other Important Levels
Banknifty’s No Trade Zones are between ₹49,065.35 and ₹48,481.85. The index has been trading just below this No Trade Zone, signaling that a breakout or breakdown could happen soon. Possible reversal levels to watch include ₹50,376.03 and ₹50,127.21 on the upside, while on the downside, ₹47,421.74 and ₹47,172.92 could serve as key reversal levels.
Possible View for Tomorrow
For tomorrow, Banknifty’s price action suggests a continuation within the range of ₹47,898.35 to ₹49,650.60. A move above ₹49,265.72 could open the path toward the next resistance levels at ₹49,960.53 and ₹50,377.92. Conversely, a breakdown below ₹48,430.95 could bring the index closer to support at ₹48,153.52, with further downside potential toward ₹47,736.13 and ₹47,041.32.
Finnifty: Today's Overview
Finnifty closed at ₹22,548.90 today, marking a notable decline from yesterday's close of ₹22,926.70. The index touched a high of ₹23,009.40 but faced resistance near the top range and pulled back toward the daily low of ₹22,492.10. This price action shows that the index is testing support levels after hitting the upper end of the range. The market is in a consolidation phase, as it continues to trade within the range of ₹22,492.10 to ₹23,009.40.
EMA Analysis
Finnifty remains well below the 50 EMA of ₹23,549.85 and the 100 EMA of ₹23,563.30, both acting as significant resistance levels. The 200 EMA stands at ₹23,044.95, adding to the bearish pressure. The index has been trading below these key EMAs, signaling a bearish bias in the near term. A break above these levels would indicate a bullish reversal, but for now, the index is struggling to clear these resistance zones.
Support & Resistance
Key support levels for Finnifty are ₹22,357.53, ₹22,166.17, and ₹22,840.23. These levels are crucial for the index to maintain a foothold in the current range. On the resistance side, watch for ₹22,874.83, ₹23,200.77, and ₹23,392.13. The index has recently struggled near the resistance zone, and any failure to break above these levels could lead to further consolidation or a pullback toward the support areas.
Other Important Levels
Finnifty’s No Trade Zones lie between ₹22,580.24 and ₹22,802.54, suggesting that traders should avoid taking positions in this range unless there is a clear breakout or breakdown. Possible reversal levels to watch include ₹23,207.07 and ₹23,301.87 on the upside, while on the downside, ₹22,176.38 and ₹22,081.58 could act as key support levels if the index faces further downside pressure.
Possible View for Tomorrow
For tomorrow, Finnifty is likely to remain in a range between ₹22,357.95 and ₹23,009.40, with a possible test of the support at ₹22,357.53. A breakout above ₹22,874.83 could bring the next resistance levels into play at ₹23,200.77 and ₹23,392.13. Conversely, if the index fails to break above the resistance, it could see a pullback towards the support levels, with potential for a deeper move toward ₹22,166.17 and ₹22,081.58.
Disclaimer:
The content provided in this blog is for educational purposes only and does not constitute investment advice, recommendation, or endorsement. Trading in the stock market involves substantial risk, and past performance is not indicative of future results. Always conduct your own research or consult a professional financial advisor before making any investment decisions. The author and the website do not accept any liability for any loss or damage, including but not limited to any loss of profit, which may arise directly or indirectly from the use of this content. All trading strategies mentioned are solely for educational purposes and should not be construed as investment advice.
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Ruel Fernandes | STWP
✉️ Email: ruelfernandes@simpletradewithpatience.com
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Tue Jan 21, 2025
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