NIFTY broke below its significant support of 23,000 yesterday. However, the decline appears to be temporary for now. A sustained trade below 23,000 on the spot market is likely to drag prices towards the zone of 22,400 to 22,600 in the near term. With India VIX above 17, a one-way decline is unlikely. Markets are likely to head lower, but in a volatile manner. NIFTY is currently trading well below its resistance. As noted multiple times, volatility is likely to remain high until January 24th. Therefore, stay nimble with your trades. It is better to avoid careless trading. From here on out, it would be ideal to operate at lower volumes.”

https://ganninsides.com/2025/01/15/nifty-navigates-choppy-waters-support-holds-but-risks-remain/

“NIFTY, as discussed in the 15th January post, 23,000 is a strong support and holding that. There is a short-term probability of a rebound towards the zone of 23,550 to 23,700, which is the resistance zone.

However, this shall only be a temporary respite; the medium-term trend remains firmly bearish. So, post this rebound, expect further lower lows.

On the time front, until 24th January, vibrations are likely to stay on the higher side, so it’s better to be watchful.”

“Expect significant market declines, impacting both India and U.S. markets, potentially starting on Tuesday due to the U.S. market holiday on Monday. The period from January 17th to 24th will likely be characterized by high volatility. Pay close attention to Tuesday and Friday, January 24th, as particularly critical dates. Friday, January 24th, is a price and time squaring date for the S&P 500, which could lead to interesting market movements. Exercise caution and consider short positions.”

“Should Nifty breach the 23,000 level, the next significant support zone may lie around 22,600 on the spot market.”

“A potential Bank of Japan rate hike next Friday could trigger significant market volatility. This unexpected move would likely reverberate across global markets, demanding close attention and a reassessment of investment strategies.”

“As mentioned in my Sunday’s post, the November low of 23,263 for NIFTY was psychologically important. However, more importantly, the zone of 23,000 to 23,100 is a critical support because it represents a 45-degree angle from its September high of 26,277. Consequently, on Monday, the index, as expected, broke its November low.”

“However, NIFTY has thus far managed to maintain its critical support level at 23,000. As long as this support holds, a rebound towards the resistance zone of 23,550 to 23,700 remains a possibility.”

“While pockets within the Indian market exhibit signs of oversold conditions and may trigger short-term rebounds, the underlying bearish medium-term trend remains firmly in place.”

“The S&P 500 has also filled its election results day gap. Further lower lows are certainly possible, but a short-term pullback may occur.”

“On the time front, for both Indian markets and U.S. markets, some very strong cycle dates are lined up from January 17th to 24th. Expect some wild price swings in Indian and global markets starting around Friday.”