Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 19

The Indian stock market indices, Sensex and Nifty 50, are expected to open flat on Friday amid positive global market cues.

The trends on Gift Nifty also indicate a flattish start for the Indian benchmark index. The Gift Nifty was trading around 21,535 level as compared to the Nifty futures’ previous close of 21,550.

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The equity benchmark indices slipped into further weakness on January 18 and ended the volatile session lower, extending their losses for the third consecutive session. In three sessions, both the Nifty 50 and the Sensex have fallen about 3% each.

On Thursday, the Sensex declined 313.90 points, or 0.44%, to close at 71,186.86, while the Nifty 50 settled 109.70 points, or 0.51%, lower at 21,462.25.

Nifty 50 formed a small positive candle on the daily chart with upper and lower shadow. Technically, this pattern indicates a formation of high wave type candle pattern at the lows, which signals high volatility in the market.

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“After showing a reasonable weakness from new highs (22,124), the formation of high waves at the lows calls for an upside bounce in the market. The bullish chart pattern like higher tops and bottoms seems to have negated, as Nifty slipped below the recent higher low of 21,448 of 10th January on Thursday. The sharp opening downside gap of Wednesday is unfilled and if this gap remains open for the next 2-3 sessions, then that gap could be considered as a bearish breakaway gap, which could possibly hint chances of more weakness in the near term,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes the short-term trend of Nifty remains weak. Having declined sharply, there is a possibility of a pull back rally in the short term, which is expected to be a sell on rise opportunity.

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

Nifty 50 Predictions

The Nifty 50 slipped below the rising trendline on the daily chart, suggesting a bearish trend reversal.

“Besides, the index has fallen below the critical near-term moving average. Now, the trend is likely to remain weak as long as the index stays below 21,550. A decisive move above 21,550 might weaken the bears; until then, bears might control the market,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the lower end, he said, support is placed at 21,400 and drift below 21,400 might take Nifty for a revisit to 21,250-21,200.

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Bank Nifty Predictions

The bears maintained control over the Bank Nifty and the index ended 0.76% lower at 45,713 on January 18.

“The index’s immediate support is positioned at the 45,500-45,400 zone, and a successful defense of this level could trigger a rebound towards 46,500. Despite potential short-term fluctuations, the broader trend continues to favor a ‘sell on rise’ approach, suggesting caution and a likelihood of further declines if the mentioned resistance level is not convincingly breached,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

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