The Nifty Spot witnessed a notable decline on Tuesday, January 21, 2025, ending the trading session at 23,024.65, down by 320.10 points or 1.37%. The market opened at 23,421.65 but failed to sustain above the crucial resistance level of 23,400, as discussed in our article on January 20, 2025. This led to a sharp correction during the session, with Nifty touching an intraday low of 22,976.85 before closing just above the 23,000-mark.
Market Movement and Analysis
The market’s inability to hold above resistance levels indicates prevailing bearish sentiment. The Nifty’s failure to breach 23,400 signals strong selling pressure and profit-booking by market participants.
For Wednesday, January 22, 2025, further downside correction is anticipated, with the Nifty potentially testing the 22,790 level. Traders are advised to exercise caution and avoid taking long positions until signs of a trend reversal are observed.
FII and DII Data
The trading data for Tuesday shows significant divergence in institutional activities:
Foreign Institutional Investors (FII): Net sellers to the tune of ₹5,920.28 crore
Domestic Institutional Investors (DII): Net buyers with inflows of ₹3,500.32 crore
The heavy selling pressure from FIIs, coupled with the subdued buying from DIIs, contributed to the downward trajectory of the market.
Key Technical Levels to Watch
Resistance: 23,120
Support Levels: 22,790
These levels will play a crucial role in determining the market’s direction in the upcoming sessions.
Caution for Traders
Given the prevailing market conditions and institutional selling, we strongly advise traders to avoid initiating long positions in Nifty. The current trend suggests increased volatility, and a cautious approach is warranted. Traders are encouraged to closely monitor institutional data and macroeconomic developments for further cues.
*Disclaimer
The views and opinions expressed in this article are for informational purposes only and should not be considered as financial advice. Trading in the stock market involves risk, and past performance is not indicative of future results. Readers are advised to consult their financial advisors before making any investment decisions.
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