Nifty View for Friday, 24th January 2025: The Indian equity market witnessed a resilient trading session on Thursday, marked by a steady positive momentum. As it was the weekly expiry, the Nifty50 index closed at 23,205.35, gaining +50 points (+0.22%) over the previous day. The index opened on a positive note at 23,228.30, touched an intraday high of 23,270.80, and marked a low of 23,209.65 during the day.
Throughout the session, the Nifty remained largely positive, respecting key support and resistance levels. Traders who followed our strategy would have noticed that the index did not breach the crucial support level of 23,090, indicating strong buying interest at lower levels. On the other hand, while Nifty did break the 23,170 resistance level, it fell slightly short of our upper target of 23,330, as it faced selling pressure around the 23,270 mark.
Thursday’s Key Observations
1. Support Levels Held Firm: Despite some volatility, the index managed to stay above the important support level of 23,090, which we had identified as a shorting trigger. This shows that buyers are willing to step in aggressively near this level.
2. Resistance Near 23,270: Nifty attempted to cross 23,270, but the strong resistance around this level led to a halt in upward momentum.
3. Positive Momentum Throughout the Day: The market sentiment remained optimistic, with the index staying above critical levels for most of the session.
Expectations for Friday, 24th January 2025
Given the positive momentum observed on Thursday, we anticipate this strength could extend into Friday. Here’s how traders can approach the market based on key levels:
Trading Strategy
1. Long Position:
Entry Trigger: Go long if Nifty sustains above 23,230.
Targets: Aim for an upside target of 23,330 initially, with a stretch target of 23,400.
Stop Loss: Place a stop loss at 23,190 to protect against adverse price movements.
2. Short Position:
Entry Trigger: Initiate a short position if Nifty trades below 23,180.
Targets: The downside target can be 23,070, with a potential for further weakness if momentum accelerates.
Stop Loss: Set a stop loss at 23,230 for short trades.
Anticipated Range for the Day
Based on technical indicators and open interest data, we expect Nifty to trade within a range of 23,080 to 23,330 on Friday. Traders should closely monitor the breakout or breakdown of these levels for clear directional movement.
Market Indicators
DII (Domestic Institutional Investors): Continued their buying spree, with net purchases worth ₹3,712.55 crore.
FII (Foreign Institutional Investors): Continued to offload positions, recording net sales worth ₹5,462.52 crore.
Open Interest (OI) Data:
23,200 PE: Strong open interest build-up indicates solid support at this level.
23,300 CE: A significant accumulation of open interest suggests resistance at 23,300.
Conclusion
While the positive momentum is expected to continue, traders should remain cautious around resistance levels near 23,300. A decisive breakout above 23,230 could open the doors for higher targets, while a breach of 23,180 on the downside may trigger selling pressure. Plan trades carefully, keeping stop-loss levels in place to manage risks effectively.
*Disclaimer
This report is for informational purposes only and does not constitute financial advice. Stock market investments are subject to market risks. Readers are advised to consult with their financial advisor before making any trading or investment decisions. Past performance is not indicative of future results.