Trade Setup For Jan. 19: Nifty To Remain Volatile, Immediate Support At 25,473

The NSE Nifty 50 continues to exhibit elevated volatility in the absence of clear directional cues. Immediate support for the benchmark lies at 25,473, while on the upside, the 25,950-26,050 zone is a key resistance band.

"The formation of another high-wave candle suggests selling pressure near key resistance levels, with buying interest emerging at lower supports," stated Bajaj Broking Research. The research firm added that the benchmark will likely consolidate within the 25,500-26,000 range.

"We are of the view  that the current market formation is volatile and non-directional, and the short-term activity indicating a non-directional trend is likely to continue in the near future," echoed Amol Athawale, vice president of technical research at Kotak Securities.

Nifty Bank

Bulls were in the favour of Nifty Bank as it outperformed broader indices, led by strong gains in PSU banks. Analysts expect the index to sustain this positive momentum.

"The index formed a large bullish candle with both upper and lower shadows, successfully breaking out of the previous six-session trading range, indicating heightened volatility and renewed buying interest," said Bajaj Broking

Key resistance for the index lies at 60,400 for the near-term, while on the downside, 59,000-58,700 zone will act as a critical short-term support.

Market Recap

Indian equity benchmarks gave up a considerable part of their intraday gains in the second half of the Friday session, driven by profit-taking in heavyweight stocks and cautious sentiment of investors ahead of key Nifty 50 earnings.

After opening in the green, the Nifty 50 ended with a marginal gain of 28.75 points or 0.11% at 25,694.35. The Sensex ended 187.64 points or 23% higher at 83,570.35.

On the sectoral front, Nifty IT and PSU Banks outperformed, providing support to the headline indices, while Nifty Healthcare, Pharma, and Consumer Durables were among the top losers.