On January 16, 2024, Indian stock market indices exhibited mixed sentiments, with the Nifty closing below the 22,050-point mark, reporting a loss of 199 points. The day was marked by a broad consolidation with minimal range-bound trade, highlighting a struggle for the Nifty 50 which ended the session down by 65 points. Despite the faltering IT sector’s performance, metals stocks managed to catch the investors’ light, presenting a silver lining amidst a generally negative trend.
The charts revealed a troubling sign for Nifty as it faced a tough resistance near the 22,000 psychological mark, suggesting that an immediate upward breakout might not be on the cards. The hourly momentum indicator, further taking the wind out of the bulls’ sails, signaled a negative crossover. This hinted at a deceleration in the index’s upward drive, encouraging a cautious stance among traders. Expectations were set for the index to oscillate between 21,900 to 22,200, with the emphasis on sector-specific movements as a probable domain of opportunity during this time frame.
Meanwhile, Bank Nifty persevered through the day in a phase of consolidation, seen as merely a momentary halt within its broader upward trajectory. Market aficionados were forecasting further gains for Bank Nifty, peering optimistically at a short-term horizon where targets could reach between 48,650 and 49,000. For those engaging in trading, the message appeared clear: preserve capital by avoiding overly aggressive long bets and maintain rigorous adherence to stoploss protocols to protect any long positions in the face of unexpected shifts.