Indian equities are expected to open on a cautious to negative note on January 19, with GIFT Nifty indicating a start around 25,600, nearly 151 points lower. While near-term sentiment remains guarded, underlying domestic technical indicators continue to provide some support. That said, the broader market direction is likely to remain influenced by global equity cues, movements in crude oil prices, and trends in institutional fund flows.
The Nifty remained volatile over the past week, recording a high of 25,899 and a low of 25,473 before closing marginally higher at 25,694, reflecting ongoing market indecision. The formation of a spinning top on the weekly chart highlights uncertainty near higher levels, with resistance seen around the 50-day EMA. On the daily chart, the Nifty closed below the 25,700 mark, indicating short-term weakness. While the index continues to trade below its 20-day and 50-day EMAs, it remains above the 200-day EMA, thereby keeping the medium-term bias constructive. Immediate resistance is placed at 25,875, followed by 26,000 and 26,100, while key support levels are seen at 25,600 and 25,450.
The Bank Nifty ended the week on a strong bullish note, rebounding convincingly from its 50-day EMA and gaining 843 points to close at 60,095. This move reflects renewed buying interest and improving sentiment at lower levels. However, a decisive break below 59,750 could trigger a corrective move toward the 59,550–59,150 zone. On the upside, resistance levels are placed at 60,350, 60,500, and 60,700.
On January 16, Foreign Institutional Investors were net sellers in the equity market, offloading shares worth approximately Rs 4,346 crore, while Domestic Institutional Investors provided support by purchasing equities worth around Rs 3,935 crore.
Amid persistent global uncertainty, traders are advised to remain selective and disciplined, focusing on fundamentally strong stocks during market declines. Fresh long positions should be considered only after a confirmed and sustained breakout above the 26,000 level on the Nifty.