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Nifty 50 Index -Shifting range downside slowly

Updated: Jan 9, 2023

The previous week Nifty 50 Index closed at 17859.45, which was a net loss of 245.85 points (-1.36%) on a weekly basis. However, the index has maintained its short-term support point

Nifty 50 Index Monthly Chart

Till the Nifty 50 Monthly index is above 17769.55, (which is 200 points far from here towards the downside), we can say that the Nifty 50 Index has strong support on monthly basis, but below this level, we need to start worrying, because then obviously we can see the 16800 level, and then below that 15200 level soon.

Nifty 50 Index Weekly Chart

The Nifty 50 Index on weekly basis is taking support on the edge of 20 Days simple moving average. 17777.50 is a crucial point. Closing below this level on weekly basis will make the Nifty 50 Index weak.

Nifty 50 Index Daily Chart

The Nifty 50 Index Daily chart has already shown a bearish candle from the last three days and taking support at the edge of the breakdown point 17777.50. If it will not take support on or above tomorrow, (Monday), then it will start a bearish trend for the coming days.

The Outlook for the upcoming week starts from 9th Jan -2023.

The coming week is not going to be easy for the Nifty 50 Index.

The only hope is that the US markets ended on a strong note on Friday and this will see our markets opening stronger as well on Monday (9th Jan-2023)

However, the behavior of the Nifty 50 Index near 18300 and between 18300-18600 levels will be extremely crucial to watch over the coming days and weeks.

Unless this zone does not survive on the upside meaningfully, we can say that the Nifty 50 Index will not only trade in a broad trading range but would also remain susceptible to corrective bouts from higher levels.

Support and Resistance Levels:

The Support Level for the Coming week will be coming from 17480 to 17600.

The Resistance Level for the coming week is likely to see levels of 18040 and 18290

If the Nifty 50 Index opens Gap-Up as expected on Monday, then we need to watch that it should stay in the range of 18057 and 18125 and also should not cross down the level of 18057 easily. If it slips below 18057 then the second level is to watch 18000 to stay on a closing basis.

Also remember, if within the week, anytime Nifty breaks 17796, it will be bearish for the complete week thereafter and can move down towards 16800.

If the Nifty 50 - Index will be able to close above the 18057 level on Monday, a daily closing basis, then we can see the level of 18250 to 18300 within this week's range.

There has been a sharp decline in US Dollar Index on Friday; this is likely to something good is coming for commodities and metal stocks.

Going forward, investors will be tracking the quarterly results of Indian companies.

If results surprise the upside, the market is bound to take courage from that.

A cautiously positive outlook is advised for the coming week.

Disclaimer: I am not a SEBI Registered technical, so just remember, to consult your financial advisor, before taking any trade. This technical post is only for learning purposes.

Thanks for reading.

Keep Trading

Stay Invested


Neeraj Bhatia

(Managing Director)

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