The first trading day of the year brought a mix of sentiments to the Indian stock market as benchmark indices hit new highs but failed to sustain those levels. The BSE Sensex closed up by 32 points at 72,272, while the Nifty 50 gained 10.5 points at 21,742. Technical analysis suggests that the market is in a consolidation phase, with a potential range of 21,650-21,850. A decisive move above 21,850 could open the door to further upside, while a break below 21,650 might lead to a decline towards the 21,500 mark.

Market experts note that despite the new high, the market is displaying signs of indecision, as reflected in the formation of a Spinning Top or High Wave candlestick pattern on the daily charts. This suggests volatility at higher levels. The positive chart pattern, characterized by higher tops and bottoms, remains intact, indicating a continuation of the near-term uptrend. Immediate support is identified at 21,550 levels.

In the banking sector, the Nifty Bank witnessed a marginal decline of 58 points to 48,234. The banking index has been consolidating within the range of 47,800 and 48,500, with momentum lacking in either direction. As long as the index holds above 48,000, it may see an upmove towards 48,500 and then its recent life high of 48,636. On the downside, support is expected at 48,000 and then 47,750 levels.

Options data reveals that the 22,000 strike holds the maximum Call open interest, followed by the 22,500 and 22,400 strikes. Meaningful Call writing is observed at the 22,400 strike. On the Put side, the 21,700 strike has the maximum open interest, indicating key support for the Nifty. Meaningful Put writing is seen at the 21,700 strike, followed by the 21,000 and 21,600 strikes.

In terms of stock movements, a long build-up is noted in 53 stocks, including Delta Corp, Balrampur Chini Mills, Gujarat Gas, Zydus Lifesciences, and Granules India. Meanwhile, 42 stocks witnessed long unwinding, including Bharti Airtel, Apollo Tyres, GMR Airport Infrastructure, Bajaj Auto, and Colgate Palmolive. Additionally, 47 stocks saw a short build-up, with Eicher Motors, Abbott India, Birlasoft, Ramco Cements, and L&T Technology Services in focus. Short-covering was observed in 44 stocks, including Tech Mahindra, United Breweries, Bank of Baroda, ACC, and MRF.

Overall, the market remains in a state of flux, with key support and resistance levels guiding short-term movements. Traders are advised to stay vigilant and monitor these levels for potential trading opportunities.