Bajaj Broking

Indian benchmark indices closed sharply lower on January 20th , with Nifty slipping below 25,250 amid broad-based selling pressure across sectors. Renewed U.S. tariff uncertainty revived trade-war fears, lifting Treasury yields and triggering global sell-offs that dragged Indian equities lower. Market volatility is expected to persist until clarity emerges on the U.S.–Europe tariff standoff over Greenland, with geopolitical and geoeconomic factors continuing to drive market direction.

At close, the Sensex was down 1065.78 points or 1.28 per cent at 82,180.47, and the Nifty was down 353 points or 1.38 per cent at 25,232.50. All sectoral indices closed in the red amid broad-based risk aversion. Realty led the fall with a 5% drop, while Auto, IT, Media, Metal, PSU Bank, Pharma, Oil & Gas, and Consumer Durables declined 1.5–2.5%. Midcap and small-cap indices declined more than 2.5% each.

Nifty Outlook 

The index formed a sizable bearish candle, registering a lower high and a lower low, which underscores an extension of the ongoing decline and confirms the continuation of the corrective bias. During yesterday's weekly expiry session, Nifty breached the previous major low of 12 January at 25,473 and witnessed a sharp sell-off in the latter half of the session. The decline extended to near the 200-day EMA, currently placed around 25,162, indicating increased downside pressure.

Looking ahead, the overall bias remains negative. A sustained move below the 200-day EMA could trigger further weakness, opening the door for a decline towards the 25,000 marks in the coming sessions. On the upside, the Tuesday breakdown zone around 25,500 is expected to act as an immediate resistance for Nifty. 

Bank Nifty Outlook

The index has formed a second consecutive bearish candle, characterised by a lower high and a lower low, indicating continuation of the ongoing corrective decline and reflecting sustained selling pressure at higher levels. From a broader perspective, Bank Nifty has been consolidating within a well-defined range of 60,400–58,700 over the past seven weeks. This prolonged sideways movement highlights a phase of indecision, and a decisive breakout above or breakdown below this range will be crucial in determining the next directional trend for the index.

On the downside, the 58,700–59,000 zone emerges as an important short-term support area. This region coincides with the lower boundary of the seven-week consolidation range as well as the 50-day EMA, making it a critical level to watch. A breakdown below this support could accelerate downside momentum. On the upside, the recent all-time high zone of 60,200–60,400 continues to act as a major resistance.

Also Read: Bajaj Broking, MOFSL & Ashika Institutional Market Closing Insights

Ashika Institutional Equities

Indian equity markets ended the session on a sharply weak note, as persistent selling pressure through the day dragged benchmarks closer to key technical supports. The Nifty opened weak at 25,580, briefly attempted to stabilize near 25,585, but selling quickly intensified, pushing the index to an intraday low of 25,347. The benchmark closed near the day’s low, underscoring the depth of bearish sentiment prevailing in the market. Market breadth remained extremely negative, with selling pressure evident across the board. All sectoral indices ended in the red, reflecting broad-based risk aversion.

The realty sector bore the brunt of the sell-off, plunging nearly 4.6%, while other cyclical and rate-sensitive sectors also witnessed significant declines.

Investor sentiment was weighed down by escalating global trade tensions and continued foreign capital outflows. Concerns resurfaced after US President Donald Trump threatened fresh tariffs on several European nations, reviving fears of renewed global trade disruptions. At the same time, sustained selling by foreign portfolio investors added to the downside pressure in domestic equities. Heightened global uncertainty and falling equity markets prompted investors to shift towards safe-haven assets, with gold and silver trading at record highs.

From a technical perspective, the Nifty’s immediate support is placed near 25,114, coinciding with the 200-day moving average, while the resistance remains at 25,500. A decisive move below the support zone could further weaken sentiment, while any recovery may face stiff resistance at higher levels.