After experiencing a significant correction of 1.5 percent on January 23, the market is anticipated to make an attempt to bounce back in the upcoming session. However, sustaining higher levels remains a key concern as bears maintain a strong position, with a continued formation of lower highs and lower lows on the daily charts.

In case of a bounce back, experts highlight the levels of 21,300-21,500 to watch, while 21,200 may act as immediate support, followed by a key support at 21,000. The BSE Sensex dropped 1,053 points to 70,371, and the Nifty 50 tumbled 333 points to 21,239 on January 23, forming a significant bearish candlestick pattern on the daily charts with strong volumes, confirming a bearish trend reversal.

Technical analyst Rajesh Bhosale notes that bears are firmly in control, with any minor bounce-back facing selling pressure. The presence of a 'Head and Shoulders' formation on a larger scale further confirms the bearish trend, indicating potential challenges in the near term.

Critical support is expected around the psychological level of 21,000, coinciding with the key 50-SMA (simple moving average). According to this pattern, the Nifty may decline towards levels between 20,800 and 20,600 in the near term. On the upside, any minor recovery is likely to face resistance around the 21,400-21,550 levels.

The broader markets saw more significant declines than the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices correcting around 3 percent each, leading to disappointing breadth.

Here are 14 data points to consider for potential trades:

Key Support and Resistance Levels on Nifty and Bank Nifty:

Nifty: Immediate support at 21,181, followed by 21,049, and 20,836 levels. Immediate resistance at 21,290, followed by 21,739 and 21,952 levels.

Bank Nifty: Expected support at 44,847, followed by 44,446, and 43,800 levels. Expected resistance at 45,170, followed by 46,541 and 47,188 levels.

Call Options Data:

Maximum Call open interest at 22,000 strike, followed by 21,700 and 21,500 strikes.

Call writing observed at 21,300, 21,400, and 21,200 strikes.

Put Options Data:

Maximum Put open interest at 20,500 strike, followed by 21,000 and 21,200 strikes.

Put writing seen at 21,200, 20,800, and 21,100 strikes.

Stocks with High Delivery Percentage:

PVR INOX, Max Financial Services, Dabur India, Marico, and Bajaj Auto recorded the highest delivery among F&O stocks.

Long Build-Up in 11 Stocks:

Bharti Airtel, Cipla, Bajaj Auto, Sun Pharmaceutical Industries, and Godrej Consumer Products witnessed a long build-up, indicating an increase in open interest and price.

Long Unwinding in 104 Stocks:

Oracle Financial Services Software, AU Small Finance Bank, L&T Technology Services, REC, and IRCTC saw long unwinding, suggesting a decline in open interest and price.

Short Build-Up in 59 Stocks:

United Breweries, Berger Paints, SBI Life Insurance Company, DLF, and Bank of Baroda witnessed a short build-up, indicating an increase in open interest along with a fall in price.

Short-Covering in 11 Stocks:

Siemens, Metropolis Healthcare, ICICI Lombard General Insurance Company, Dr Reddy's Laboratories, and Cummins India were on the short-covering list, suggesting a decrease in open interest along with a price increase.

PCR (Put Call Ratio):

Nifty PCR fell to 0.74 on January 23, indicating traders buying more Call options than Puts, suggesting an increase in bullish sentiment.

Bulk Deals:

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Earnings Focus on January 24:

Companies like Bajaj Auto, Tata Steel, Tech Mahindra, TVS Motor Company, Canara Bank, DLF, Indian Oil Corporation, and others will be releasing quarterly earnings on January 24.

Stocks in the News:

Axis Bank, Mahanagar Gas, United Spirits, Tata Elxsi, JSW Energy, and Lupin are among the companies in focus with recent developments.

FII and DII Data:

Foreign institutional investors (FIIs) remained net sellers for five consecutive days, selling shares worth Rs 3,115.39 crore. Domestic institutional investors (DIIs) bought Rs 214.40 crore worth of stocks on January 23.

Disclaimer: The views and investment tips expressed by experts are their own, and readers are advised to consult certified experts before making any investment decisions. This news is provided for informational purposes only.