Although the market has been experiencing a bearish phase, the advance-decline ratio for Nifty remained strong at 1.3, suggesting that there is still significant underlying strength and resilience in the market.
In the past 11 trading sessions, Nifty closed in the red nine times on the daily chart, and the weekly chart also reflected a negative close for the current week. However, Friday, bulls brought some relief as Nifty was led by gains in metals and energy stocks. The index closed the week at 23,203, down by 0.5% for the week ended January 17, 2025.
The Nifty50 fell more than 1.4% so far in the month of January 2025. It closed at 23,644 on December 31, 2024. BPCL, Reliance Industries, Coal India, and Hindalco emerged as the top gainers, while Infosys and Axis Bank disappointed with poor earnings, falling by around 4-5%.
Despite this bearish streak, the advance-decline ratio for Nifty remained positive at 1.3, signaling underlying resilience in the market. Most retail traders anticipate the bearish momentum to persist next week. However, our research at Wealthview Analytics Pvt Ltd suggests otherwise.
The Nifty outlook for the week of January 20 to 24 appears bullish. On the daily chart, Nifty is currently near the 0.38% Fibonacci level, which is considered a strong support zone. Additionally, an inverted hammer pattern formed on January 13 further supports a bullish view.
Immediate resistance levels are 23,814 and 24,142, while support levels are 22,767 and 22,530. Traders can consider making bullish positions with a potential target of 23,814 and a stop loss at 23,047, the recent low on a day-close basis.
Key Timeframes (Jan 20-24)
- Monday, January 20: 10:00 AM – 12:35 PM and 1:15 PM
- Tuesday, January 21: 10:30 AM – 11:40 AM and 1:35 PM
- Wednesday, January 22: 11:40 AM – 2:25 PM
- Thursday, January 23: No specific time
- Friday, January 24: 12:35 PM – 1:30 PM
