Nifty 50 for Wednesday, January 15, 2025: Bullish Harami Cross indicates short-term rebound

On Tuesday, January 14, the Nifty 50 formed a Bullish Harami Cross pattern on its daily chart, which typically indicates a potential short-term recovery. The pattern, occurring after a significant market correction, suggests that there might be a temporary relief rally.

Market Overview: After four days of sharp declines, both the benchmark indices, Sensex and Nifty, bounced back. The Sensex rose by 169.62 points or 0.22%, closing at 76,499.63, while the Nifty surged by 90.10 points or 0.39%, settling at 23,176.05.

Nifty Outlook for Wednesday, January 15:

Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, believes that the recent gain in Nifty should be viewed as a temporary relief rally following a sharp decline. He noted that the downtrend is still intact and suggested that pullbacks towards the resistance zone (23,270 – 23,300) should be seen as potential selling opportunities. On the downside, Gedia expects the Nifty to drift lower towards the 23,000 – 22,670 range. However, a move above 23,340 could trigger short covering and a potential upward trend.

Rupak De, Senior Technical Analyst at LKP Securities, highlighted the Bullish Harami Cross pattern, which suggests that the Nifty could show a short-term positive movement as long as it stays above 23,135. On the upside, the Nifty may move towards 23,400, and a decisive move above this level could signal further gains.

Vinay Rajani, Senior Technical & Derivative Research Analyst at HDFC Securities, noted that the formation of a small candle within the previous day's move points to a potential short-term trend reversal. However, a breakout above the previous day's high of 23,265 would confirm a further rise. Resistance levels are seen at 23,340 and 23,500, while 23,047 remains the support level for the short term.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, indicated that the near-term trend remains weak. He cautioned that the current upside bounce could be an opportunity to sell around the 23,350 level. Immediate support is at 23,050, and if this level is breached, the bearish trend could resume.

Support and Resistance Levels:

Support: 23,135 – 23,000

Resistance: 23,270 – 23,300 (near-term); 23,400 – 23,500 (longer-term)

Overall, while the Bullish Harami Cross pattern suggests a potential short-term recovery, the broader downtrend is still intact. Investors should monitor key levels for any confirmation of a trend reversal or further downside risks.