Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 10

The Indian stock market indices, Sensex and Nifty 50, are likely to open lower on Friday tracking weak domestic as well as global market cues.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,583 level, a discount of nearly 63 points from the Nifty futures’ previous close.

On Thursday, the domestic equity market ended lower as rising US dollar and bond yields weighed on investor sentiment.

The Sensex declined 528.28 points, or 0.68%, to close at 77,620.21, while the Nifty 50 settled 162.45 points, or 0.69%, lower at 23,526.50.

Nifty 50 continued its weakness on January 9 and closed the day lower by 162 points.

Nifty 50 formed a long negative candle on the daily chart on Thursday after the formation of hammer type candle pattern on Wednesday.

“The positive sentiment of hammer is now on the verge of negation. This is not a good sign and one may expect more weakness in the coming sessions. Nifty 50 is currently placed at the downside breakout of the support of around 23,500 levels (previous swing lows). A decisive slide below the said support could open the next downside of around 23,260 and lower in the short term. Immediate resistance is at 23,700,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

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 23,700 and 23,800 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,500 and 23,200 strike prices, marking these as key support levels, said Hardik Matalia, Derivative Analyst at Choice Broking.

Nifty 50 Prediction

“Nifty 50 index closed slightly above its critical support at 23,500 on Thursday, forming a bearish candlestick below the 200-day EMA (Exponential Moving Average), signaling caution. A follow-up breach below 23,500 would validate a sell-on-rise strategy, with further downside expected. Conversely, holding this support may lead to consolidation. For the short term, 23,500 acts as a key support, while resistance is placed at 23,800, capping any upside,” said Vatsal Bhuva, Technical Analyst at LKP Securities.

He suggests traders should monitor these levels closely, as they will dictate the index’s immediate directional trend.

Dr. Praveen Dwarakanath, Vice President of Hedged.in, highlighted that the Nifty 50 again tested its critical support at the 23,500 level, making the support weaker, and a break of the support is likely in the coming days.

“The momentum indicators on the daily chart also show reduced momentum on the upside, suggesting a continuation of the fall. The index formed an insider candle, indicating no clear sign until the support at 23,500 is taken off. Options writer’s data for the January monthly expiry showed increased writing of the calls at the 23,400 and above levels and writing of puts at the 23,500 level, indicating support at the 23,500 level,” said Dwarakanath.

VLA Ambala, Co-Founder of Stock Market Today, noted that the Nifty is nearly 5% below its 20-month EMA, suggesting potential for further declines.

“Amid these conditions, Nifty could hover for support near 23,460 and 23,370 and face resistance around 23,620 and 23,700. I would suggest investors accumulate value stocks during this dip to outperform the broader market in the future,” Ambala said.

Bank Nifty Prediction

Bank Nifty ended 331.55 points, or 0.67%, lower at 49,503.50 on Thursday, and formed a bearish candlestick pattern on the daily charts.

“Bank Nifty broke its immediate support at the 49,500 level, indicating weakness in the index. The index came near the 50,000 level on the day’s high but got rejected, indicating a weakness in the index. Any bounce in the index can be used to sell on every rise until the index breaks the 50,000 level,” said Dr. Praveen Dwarakanath.

According to him, the momentum indicators also show weakness in the index. 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.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.