News Stocks Nifty 50 Falls Below Key Support Levels as VIX Hits 7-Month High Amid Rising Market UncertaintyNifty 50 Falls Below Key Support Levels as VIX Hits 7-Month High Amid Rising Market Uncertainty
Nifty 50 declined 0.95% to 25,049 on January 23, recording its biggest weekly fall since September with a 2.51% drop. The index broke below key technical levels including the 200-day EMA, with momentum indicators flashing sell signals. India VIX surged to a 7-month high of 14.19, indicating elevated market uncertainty ahead of budget week. Bank Nifty faced heavier selling pressure, falling 1.23% to 58,473 and breaking below crucial support levels.
*this image is generated using AI for illustrative purposes only.
The Nifty 50 faced intense selling pressure on January 23, declining 241 points or 0.95% to close at 25,049. The benchmark index opened higher above 25,300 but failed to sustain those levels, losing all gains within the first hour and extending its fall throughout the trading session to hit an intraday low of 25,025.
Weekly Performance and Technical Breakdown
The index recorded its most significant weekly decline since September, shedding 2.51% or 646 points for the week. This marked a decisive break below the 200-day Exponential Moving Average (EMA), with the index now trading below all key moving averages.
| Technical Indicator | Status | Details |
|---|---|---|
| 10-day EMA | Bearish | Trending downward |
| 20-day EMA | Bearish | Trending downward |
| 50-day EMA | Bearish | Trending downward |
| 100-day EMA | Bearish | Moderately turned down |
| 200-day DEMA | Neutral | Remains flat |
The index violated its rising trendline support and formed a long bearish candle on both daily and weekly charts, signaling continued weakness. Momentum indicators also flashed sell signals across daily and weekly timeframes, with the daily RSI standing at 29.12 and the MACD maintaining bearish crossovers with weakness in the histogram.
Market Volatility and Uncertainty
Adding to the cautious market undertone, India VIX surged 6.3% to close at 14.19, marking a fresh seven-month closing high. The volatility index rallied 24.8% for the week, extending its uptrend for the fourth consecutive week and signaling elevated market uncertainty ahead of the budget week.
| VIX Performance | Value |
|---|---|
| Daily Change | +6.3% |
| Weekly Change | +24.8% |
| Closing Level | 14.19 |
| Trend Duration | 4 consecutive weeks |
Technical Outlook and Key Levels
Market experts suggest that if the index sustains below the 200-day DEMA at 25,163, a break below 24,900 (the week's low) cannot be ruled out, followed by 24,600 as a crucial support zone. In case of a bounce back amid likely consolidation, the 200-day DEMA is expected to act as an immediate hurdle, followed by 25,300-25,350 as a crucial resistance zone.
Weekly options data indicates the Nifty 50 is likely to trade within a broad range of 24,500-25,500, with immediate resistance at 25,200-25,300 and support at 25,000-24,900. Ahead of the monthly F&O expiry on Tuesday, market volatility is expected to remain elevated.
Bank Nifty Under Pressure
The banking index witnessed heavier selling pressure than the benchmark, declining 727 points or 1.23% to 58,473. Bank Nifty formed a long bearish candle on both daily and weekly charts, falling 2.7% for the week and marking its biggest weekly correction since August.
| Bank Nifty Metrics | Current Level | Change |
|---|---|---|
| Closing Price | 58,473 | -1.23% |
| Weekly Performance | -2.7% | Biggest fall since August |
| Daily RSI | 38.98 | Weak momentum |
| Key Support | 57,700 | 100-day moving average |
The index decisively slipped below the 50-day EMA and its trendline support at 58,800 in a single session, reflecting strong selling pressure. Technical analysts suggest the index has entered a 'sell on rise' phase, with immediate support at 58,000 and resistance in the 58,800-58,900 zone.
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