News Stocks Nifty 50 Rebounds Above 200-Day EMA: Key Levels and Market Data for January 23 TradingNifty 50 Rebounds Above 200-Day EMA: Key Levels and Market Data for January 23 Trading
Nifty 50 ended its three-day decline on January 22, rising above the 200-day EMA by over half a percent. Technical analysts emphasize that a sustained close above 25,850 is essential for uptrend continuation, with immediate resistance at 25,500-25,600 and support at 25,160. The India VIX remains elevated at 13.35 despite a 3.12% correction, while the Put-Call ratio improved to 0.87, indicating cautious market sentiment amid ongoing volatility expectations.
*this image is generated using AI for illustrative purposes only.
The Nifty 50 staged a recovery on January 22, breaking its three-day losing streak and climbing back above the crucial 200-day exponential moving average (EMA) with gains exceeding half a percent. This relief rally, while expected by market participants, comes with conditions for sustained momentum according to technical analysts.
Technical Outlook and Key Resistance Levels
For the uptrend to continue, experts indicate that the Nifty 50 requires a strong and sustainable close above the 25,850 level. Until this threshold is breached convincingly, the market may experience consolidation and volatility in the short term, influenced by prevailing bearish sentiment and elevated VIX levels.
| Support/Resistance Levels: | Nifty 50 | Bank Nifty |
|---|---|---|
| Immediate Resistance: | 25,500-25,600 | 59,485 |
| Key Resistance (Pivot): | 25,400, 25,463, 25,565 | 59,662, 59,949 |
| Immediate Support: | 25,160 | 58,912 |
| Crucial Support: | 24,900 | 58,735, 58,449 |
Market Structure and Technical Indicators
The Nifty 50 formed a small bearish candle with upper and lower shadows on January 22, resembling a high-wave pattern that indicates volatility and indecision among market participants. While the index negated the lower highs-lower lows formation of the previous three sessions, it requires additional strength to establish a higher high-low structure.
Technical indicators present a mixed picture. The index climbed back above the 200 DEMA but remained below other key moving averages. The RSI stands at 33.82, while the MACD maintains a bearish crossover with the histogram below the zero line. The Stochastic RSI turned bullish but remains in oversold territory, suggesting a cautious near-term outlook despite the relief bounce.
Bank Nifty Performance and Options Data
The Bank Nifty rallied 400 points and formed a doji candlestick pattern following three bearish candles, indicating indecision between bulls and bears. The index climbed above the 50 DEMA but remained below short-term moving averages, managing to hold above the 58,800 trendline support.
| Options Data Summary: | Call Options | Put Options |
|---|---|---|
| Nifty Max OI Strike: | 26,000 (1.43 cr contracts) | 25,000 (1 cr contracts) |
| Bank Nifty Max OI Strike: | 60,000 (20.41 lakh contracts) | 59,000 (9.53 lakh contracts) |
| Key Resistance/Support: | 26,000 resistance | 25,000 support |
Market Sentiment Indicators
The India VIX, known as the fear index, corrected 3.12 percent to 13.35 but remained at elevated levels, signaling continued discomfort for bulls. The Nifty Put-Call ratio (PCR) increased to 0.87 from 0.78 in the previous session, indicating a slight improvement in market sentiment as traders sold more Put options relative to Call options.
Derivative Market Activity
Derivative market data reveals mixed positioning among market participants:
- Long Build-up: 81 stocks showed increased open interest with price gains
- Short Covering: 84 stocks experienced decreased open interest with price increases
- Short Build-up: 29 stocks saw increased open interest with price declines
- Long Unwinding: 18 stocks witnessed decreased open interest with price falls
Two stocks remain under the F&O ban: Bandhan Bank and Sammaan Capital, with no additions or removals on January 22.
The current market structure suggests cautious optimism, with the relief rally providing temporary respite from the recent selling pressure. However, sustained momentum above key resistance levels will be crucial for confirming a trend reversal in the coming sessions.
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