Trade Setup For Jan. 17: Nifty Gains Positive Momentum, Faces Key Resistance At 23,450

The NSE Nifty 50 signals potential bullish momentum after closing above 23,300. Analysts suggest sustained gains could drive the index toward 23,450–23,500, while a dip below 23,300 may shift sentiment, targeting support at 23,200–23,175.

Technically, after a gap-up opening, the market registered some selling pressure at higher levels. However, it succeeded to close above the 23,300 resistance mark, which is largely positive, according to Shrikant Chouhan, head of equity research at Kotak Securities.

"We believe that above 23,300, the market could continue its bullish momentum toward 23,450–23,500. On the other hand, if it falls below 23,300, sentiment could change, and it may retest levels of 23,200–23,175," he said.

The IT sector will be in focus as Infosys Ltd. announced its results and Wipro and Tech Mahindra will declare the results on Friday. The easing of geopolitical risks and the positive global market trends could provide additional tailwinds for the market in the near term, according to Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services Ltd.

The Bank Nifty settled the day on a positive note at 49,279. Technically speaking, Bank Nifty has formed a green candle on a daily scale, indicating strength, according to Hrishikesh Yedve, research analyst at Asit C Mehta Investment Interrmediates Ltd.

"On the downside, 48,900 levels will provide immediate support for the index. However, the index remains below its 250-Day Simple Moving Average or 250-DSMA hurdle, which is around 49,900 levels. As long as the Bank Nifty stays above 48,900, the current rally might keep climbing toward 49,900 levels," Yedve said.

Foreign portfolio investors remained net sellers of Indian equities for 10 straight sessions on Thursday and domestic institutional investors have been buyers for 22 consecutive sessions.

FPIs sold stocks worth Rs 4,342 crore and domestic institutional investors bought stocks worth Rs 2,928.7 crore, according to provisional data from the National Stock Exchange.

The Nifty January futures were up by 0.61% to 23,406.90 at a premium of 95.1 points, with the open interest down by 0.26%.

The open interest distribution for the Nifty 50 Jan. 23 expiry series indicated most activity at 24,500 call strikes, with the 22,000 put strikes having maximum open interest.

The benchmark indices extended gains for the third straight session on Thursday ahead of the third-quarter results of Reliance Industries Ltd., Infosys Ltd. and Axis Bank Ltd.

The NSE Nifty 50 ended 98.60 points or 0.42% higher at 23,311.80, and the Sensex ended 318.74 points or 0.42% higher to 77,042.82. During the session, the Nifty rose as much as 0.77% or 178.45 points to 23,391.65. The Sensex rose 0.78% or 595.42 points higher at 77,319.50.

HDFC Life Insurance Co. and Bharat Electronics Ltd. were top gainers in the Nifty.

• BPCL : The company executes loan pact worth Rs 31,802 crore with SBI-led consortium to finance projects planned at Bina. 

• Concord Biotech: The company enters Into share purchase agreement with Clean Max Everglades & Clean Max Enviro Energy Solutions. Co to acquire 26% stake of Clean Max from Clean Max Enviro Energy Solutions Pvt. Ltd.

• One Mobikwik Systems: The company partners with Piramal Finance to offer personal loans. Access available to pan India Co's app users with loan amount for ZIP EMI ranging from Rs 50,000 to Rs 2 lakh.

• HFCL: The company’s gets order worth Rs 2,501 crore from BSNL for middle-mile network of BharatNet Phase III in Punjab.

• Ireda: The company has initiated JV Pact with GMR Energy, GMR Power & Others for Hydro-Electric Power Project.

Stocks in the Asia-Pacific region treaded cautiously following a muted Wall Street close with traders bracing for China's economic data on Friday.

Australia's S&P/ASX 200 opened higher with the benchmark index advancing by 0.12%, or 10.3 points, to 8,337 as of 6:35 a.m. Japan's Nikkei was down 342 points, or 0.9% at 38,237.

Future contracts in Mainland China and Hong Kong pointed to a cautious start on Friday. The benchmark CSI 300 closed higher on Thursday. Chinese economic data is likely to show the world's second-largest economy failed to break a deflationary cycle last year, according to Bloomberg News.

While growth in China is still expected to have expanded, the gross domestic product deflator will reach minus 0.2% in 2025, analysts polled by Bloomberg said.

Consumer inflation print in the Eurozone and housing starts, industrial production in the US will be the key data due Friday.

Meanwhile, the yields on the US 10-yeah bond fell after Federal Reserve Governor Christopher Waller told CNBC that officials could lower rates again in the first half of 2025 if inflation data continue to be favourable. The yield on 10-year Treasuries declined four basis points to 4.61%

The largest cryptocurrency traded above the $100,000 mark. The dollar index — which tracks the greenback's performance against a basket of 10 leading global currencies — was flat at 108.95.

Data on Thursday showed that US retail sales broadly advanced in December, indicating strong consumer demand to wrap up the holiday season.

The S&P 500 and the Dow Jones Industrial Average fell 0.21% and 0.16%, respectively. The tech-heavy Nasdaq Composite slipped 0.89%.

Crude oil prices changed a little after a 1.7% drop on Thursday. The Brent crude was trading 0.32% higher at $81.55 a barrel as of 6:50 a.m. IST, and the West Texas Intermediate was up 0.44% at $79.03. 

The rupee resumed its slump against the greenback on Thursday as the dollar index steadied in the European session. Moreover, crude oil prices were trading near over five-month high, which also pressured the Indian unit.

Rupee weakened by 18 paise to close at 86.54 against the US Dollar on Thursday. The Indian unit settled at 86.36 a dollar on Wednesday.