Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 9 | Stock Market News

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday tracking weak global market cues.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,721 level, a discount of nearly 60 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity market recovered from day’s low to end flat with negative bias.

The Sensex eased 50.62 points, or 0.06%, to close at 78,148.49, while the Nifty 50 settled 18.95 points, or 0.08%, lower at 23,688.95.

Nifty 50 formed a small red candle on the daily chart with a long lower shadow.

“Technically, this market action indicates a formation of ‘hammer’ type candle pattern. Normally, such hammer formation after a reasonable decline calls for an impending trend reversal on the upside post confirmation. Though, Nifty 50 placed below the crucial 200-day EMA (Exponental Moving Average) at 23,700 levels, there is an absence of sharp break down below this key support. This 200 DEMA has offered significant trend reversal on upside in the past,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short term trend of Nifty 50 remains weak, but the smart upside recovery from near 23,500 levels is indicating chances of an upside bounce in the coming sessions.

“A sustainable move above the hurdle of 23,800 levels could confirm an upside bounce in the market. Immediate support is placed at 23,496 levels,” Shetti said.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

Nifty Open Interest (OI) data indicates the highest OI on the call side at the 23,800 and 24,000 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,600 and 23,500 strike prices, marking these as key support levels, said Hardik Matalia, Derivative analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 witnessed a smart upside recovery from the lows on January 8 after showing a deep cut in the early-mid part of the session and settled the day lower by 18 points.

“Nifty 50 index is trading within a range of 23,500 to 24,200. In Wednesday’s session, it formed a hammer candlestick on the daily chart, closing near its 200-day EMA, thereby strengthening the 23,500 support level. A decisive move will require the index to close below 23,500, which could lead to heightened selling pressure, or sustain above 24,000 to pave the way for a potential rally toward 24,500. Monitoring these crucial levels is essential to identify the next trend in the index,” said Vatsal Bhuva, Technical Analyst at LKP Securities.

Dr. Praveen Dwarakanath, Vice President of Hedged.in highlighted that the Nifty 50 tested its critical support at the 23,500 level again, however, it bounced from the same level, indicating a mild bullishness in the index.

“The ADX average line is nearing the 40 level, suggesting that the weakness in the daily timeframe is decreasing. It also indicates a small bounce from present levels, which can be used to sell the index on the rise. The momentum indicators on the daily chart are rising from the oversold region, also indicating a possible bounce from the current levels,” said Dwarakanath.

According to him, the options writer’s data for the January monthly expiry showed increased writing of the calls at the 23,400 and above levels with a short covering of 24,000 puts, suggesting a weakness to continue in January month for the index.

Bank Nifty Prediction

Bank Nifty index declined 367.10 points, or 0.73%, to close at 49,835.05 on Wednesday, forming a bearish candlestick pattern on the daily timeframe.

“Bank Nifty broke its critical support at 49,500 levels, however it bounced during the day. The index has closed below the 50,000 level, indicating a possible weakness in the index. Any bounce in the index can be used to sell on every rise until the index breaks the 51,600 level. The ADX average line is rising with the ADX DI- line also rising, indicating a possible weakness in the index,” said Dwarakanath.

Options writer’s data for the monthly expiry showed increased writing of the calls at the 50,000 level, suggesting a weakness in the index, he added.

Om Mehra, Technical Analyst, SAMCO Securities said that the Bank Nifty index breaking below the 49,964 level, a key support that had remained unbroken since August 14, 2024, further weakened the overall trend.

“The daily RSI hovers near the oversold zone, reflecting the ongoing bearish pressure. However, the Bollinger Bands on the daily chart indicate that the index remains in the lower band. If 50,200 is sustained, a relief rally may emerge in the coming session. The support level is positioned at 49,450, which could act as a cushion in case of further declines. Premature attempts to capture bottoms should be avoided until a strong base is firmly established,” Mehra added.

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