Market Turmoil: Nifty Sinks Below 23,450, Sensex Drops Amid Volatility, IT Shines Bright

The Indian stock market experienced significant volatility on January 10, 2025, with the Nifty index closing below 23,450 amid broad-based selling marking its third consecutive day in the red. Market volatility is anticipated to persist over the next few weeks due to key global events, including US payroll data and the upcoming Union Budget, keeping investors cautious

  The Nifty opened with an upward gap but faced selling pressure from the Opening tick . It took  support near the election exit poll day high. The index is trading below its 200-day moving average, a critical long-term indicator, which is currently at 23,670.  

  On shorter time frames, the Relative Strength Index (RSI) shows a positive divergence, hinting at a potential short-term bounce which traders can use as an opportunity to take short positions.

– Support Zones: 23,400–23,300  

– Resistance Zones: 23,550–23,800  

Sensex 

The Sensex opened at 77,683 on Friday, 10 January 2025, but faced selling pressure from the opening tick and closed in the red with a loss of 241 points or -0.31%.  

On a weekly basis, the index declined by 1,844 points, reflecting a loss of -2.33%.  

In shorter time frames, the Relative Strength Index (RSI) shows a positive divergence, indicating a potential short-term bounce. Traders can use this as an opportunity to initiate short positions.

Support : 76800-76000

Resistance: 77700-78500

Sector 

The Nifty IT index closed at 44,609, gaining 1,483 points or 3.44% on a daily basis. On a weekly basis, the index recorded a gain of 882 points, translating to an increase of 2.02%.

On the daily chart, the index found support near the 50% Fibonacci retracement level at 43,031 and broke out of a 13-bar consolidation pattern. The momentum indicator RSI remains in a bullish phase, staying above 55, which indicates the potential for the index to head towards the 46,000-46,500 levels Key support levels are placed at 43,700-43,100

Article Written by Milan Parikh, Co Founder, Jainam Broking Limited 

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Milan.parikh@jainam.com