The Road Ahead for Nifty: Volatility and Uncertainty

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.”

Nifty: Temporary Respite Ahead of Further Lower Lows

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.”

TCS: Turning Point Reached, Further Correction Likely

https://ganninsides.com/2025/01/10/will-tcs-reverse-course-next-week/

“TCS lost its entire momentum gained after its results were announced. On January 10th, when the stock was up more than 6%, I shared a post anticipating that this momentum would fizzle out very soon. I also shared two dates, January 13th and 14th, as strong turning points. The stock reached its rebound high on January 13th. On the price front, 4200 was identified as critical support. The break of this support triggered a decline towards our first projected target of 4060 today. Going forward Further downside risks remain. 4020 now acts as a key support level. A close below this level could open the door for a deeper correction towards 3950, with potential extensions to 3840 in the coming weeks.”

Prepare for Turbulence: Key Dates & Risks

“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.”