“Support Breached, Trend Confirmed: Nifty & S&P 500 Bearish Outlook Intensifies”

“The market is sending us clear signals, and it’s crucial to understand them. While some may see short-term volatility, the underlying trend remains firmly bearish. Let’s delve deeper into the factors driving this market movement.”

https://ganninsides.com/2025/01/04/decoding-the-market-unraveling-the-current-trends/

“Markets behaved precisely as I predicted in my January 4th post. As discussed, both the Nifty and the S&P 500 fell below their given support levels during the week and are now poised for further declines.”

So “There’s nothing further to add to our previous discussion. My stance on Indian markets has been unequivocally bearish since early October, and I’ve held a bearish outlook on US indices since early December.”

The bearish trend persists, but certain market segments within India are showing signs of being oversold. This could lead to heightened volatility, but the overall market direction is likely to remain downward. I anticipate significantly lower levels for the Nifty and have shared specific price targets and their associated timelines with subscribers.”

For now, let’s discuss the near-term setup for NIFTY and the S&P 500.

NIFTY

“The November low of 23,263 is psychologically important for NIFTY, but more importantly, the zone of 23,000 to 23,100 is a more critical support level. This is because it represents a 45-degree angle support line drawn from its September high of 26,277. Therefore, a break below this zone could open up significant downside levels in the short and medium term.”

If 23000 is broken, 22500 may become a potential target in the short term.”

S&P 500

“On the S&P 500, as I discussed last week, 5840 was a critical support level. As anticipated, this support finally broke on Friday. However, the election results day gap has not yet been filled. This gap would be filled at 5781. It should only be a matter of time before the index fills this gap. Once this happens, it could open up a decline towards 5620 within the next few days. From here, global markets are about to enter a phase of extreme volatility, so be prepared for a roller coaster ride.”

“Last week, I also discussed certain tech stocks, such as Nvidia and Microsoft, which exhibited setups for a sharp decline. As predicted, both stocks experienced significant selloffs. Notably, the reversal in Nvidia has been particularly severe, potentially signaling the beginning of a broader downturn within the tech sector. A decisive break below the critical 126-130 price zone in Nvidia would strongly suggest a significant shift in sentiment and could have severe implications for investors in the technology space.”

“Things are looking a bit dicey for both NIFTY and the S&P 500 right now. With those support levels broken, it could get bumpy ahead. Best to be prepared for some volatility.”

Will TCS Reverse Course Next Week?

“TCS is an interesting stock. It is up 5% today. The interesting part is that on the time front, on 13th and 14th January, this stock will have a very strong turn date. So, I would expect this momentum to fizzle out very soon. Let’s see technically. If the stock sustains below the intraday low of 13th and 14th January, then we would be looking for a very sharp reversal to come through. On the price front, 4200 is a key support here. Once it breaks, a decline towards 4060 and 3950 would be on the cards. Let’s see whether we get a turn or not next week.”

Trading HDFC Bank: From Breakout to Breakdown

https://ganninsides.com/2024/12/18/hdfc-bank-stock-1800-or-bust/

“In my December 18th post on HDFCBANK, I identified 1800 as a critical support level. A breach of this level would likely signal a decline towards 1740 and 1660. The stock indeed reached our first target of 1740 earlier this month and today has finally reached the second target of 1660. This represents a substantial decline of nearly 10% in a single trade, a surprising turn of events considering the stock’s apparent breakout from a three-year consolidation phase in early December. Since late November, we have successfully traded this stock on both the long and short sides.”

Predicting and Profiting from Zomato’s Decline

https://ganninsides.com/2024/12/26/zomato-analyzing-a-potential-peak-and-predicting-downside-risk/

“Zomato has proven to be an intriguing trading opportunity. On December 26th, I identified the December 9th high of 304.7 as a potential medium-term peak. Based on this, I recommended a short trading strategy, either below 266 or upon a rebound towards 290. As anticipated, the stock rallied towards 290 before sharply reversing downwards. This decline swiftly breached the critical support level of 266, subsequently reaching our projected primary target of 244 today.”

APOLLOTYRES: Trading Update & Market Outlook

https://ganninsides.com/2024/12/19/the-apollo-tyres-enigma-unraveling-price-patterns/

“As anticipated on December 19th, APOLLOTYRES traded below its December 9th high of 557. Today, it has achieved our primary target of 495. The stock consolidated until early January, but once price met with time during the 1st and 2nd of January, activity picked up. Technically, the next leg lower has begun, so our next target of 465 should also be achieved on time. The next critical cycle dates are due on January 27th and 28th.”

Downside Risks Emerge for GODREJPROPERTIES

“GODREJPROPERTY had a very important cycle date yesterday. So, a daily close below yesterday’s low of 2621 is likely to trigger a major breakdown here, which would have very wide targets until early March. For the short term, on the price front, 2550 is an important support. Once that goes, a decline towards 2490 and 2440 is possible during the next few days. A break of 2550 would also open up a trajectory towards 2160, possibly until early March.”