Weak Sentiment Expected in Indian Stock Market: Nifty 50 and Sensex Outlook for January 13, 2025
The Indian stock market is likely to face a tough start on January 13, 2025, with both Nifty 50 and Sensex expected to open lower, following a series of weak signals from global markets. The Nifty 50, India’s benchmark index, has been under pressure, and this trend is expected to continue into the new week. The trends observed in the Gift Nifty, which was trading at 23,330—around 170 points below its previous close—suggest a gap-down opening for Indian indices.
On the previous day, January 12, the Nifty 50 had already slipped below the key 23,500 level, signaling a continuation of the negative sentiment that has been weighing on the market for the past few sessions. The Sensex also saw a decline of 241.30 points, or 0.31%, closing at 77,378.91, while the Nifty 50 ended 95 points lower, at 23,431.50. This downward movement was marked by the formation of a bearish candlestick on the daily chart, indicating a continuation of the market’s weakness.
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Technical analysts suggest that the Nifty 50 is currently within a converging triangle on the daily chart, and a downside breakout from this pattern seems increasingly likely. The key support levels to watch are 23,300 and 23,000, with resistance at 23,600. As the market faces this bearish phase, the immediate outlook is weak, with no clear signs of a recovery in the short term. The RSI indicator also reflects negative momentum, adding to the bearish sentiment.
Looking at the broader picture, the weekly chart for the Nifty 50 reveals a significant pullback, following a brief positive rally in the previous weeks. The index has now broken below the support line of an ascending trend, adding to the negative outlook. The likelihood of further downside exists, with analysts predicting a potential fall toward the 23,000-23,260 range in the coming sessions.
The Bank Nifty index, too, has struggled, closing lower by 769.35 points or 1.55% on January 12. The formation of a bearish Marubozu pattern on both the daily and weekly charts signals further downside risk for this sector. Analysts are predicting that the next support for Bank Nifty lies around the 48,300 mark, and a break below this could trigger a steeper decline.
As we approach the middle of January, market participants are advised to remain cautious, with a bearish bias prevailing across key sectors. The current weakness, however, has led some analysts to believe that a short-term pullback could be possible, especially if Nifty manages to break above the 23,600 resistance level. For those involved in short-term trading, this could offer some relief, but the overall sentiment remains negative.
So, January 13, 2025, is likely to see continued pressure on both Nifty 50 and Sensex, with bearish trends dominating the market. Traders and investors should brace for volatility and monitor key support and resistance levels closely. The market remains oversold, and any rally should be treated with caution, as the broader trend appears to favor further declines. As always, it’s essential to stay informed and adjust strategies accordingly to protect capital in these challenging times.
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