Nifty prediction for Monday, Jan 13: Bearish sentiments persist

As Indian benchmark indices, Sensex and Nifty, enter a correction phase, the market outlook remains cautious. The Sensex has dropped 10% and the Nifty 50 has declined by 10.8% from their record highs, signaling a tough phase ahead.

Over the past three sessions (January 8-10), the market witnessed a significant loss of Rs 13.51 lakh crore in value, with both indices extending their losing streak for the third consecutive session on Friday, January 10. The continuous outflow of foreign funds has dampened market sentiment.

What Experts Are Saying

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlights that the market is unlikely to see a rally in the near-term due to the ongoing uncertainty surrounding President Trump's potential actions. The sustained selling by foreign institutional investors (FIIs), which reached Rs 7,170 crore recently, will continue to put downward pressure on the market.

"With the earnings season underway, we can expect stock-specific movements. TCS results suggest that the IT sector remains resilient. Banking stocks are expected to perform well, but their response may be muted due to FII selling. Pharma stocks and select auto stocks like Eicher, M&M, and Bajaj Auto may outperform in a weak market," he added.

Nifty Outlook: Support and Resistance Levels

Akshay Chinchalkar, Head of Research at Axis Securities, points out that with the index closing below 23,583, the bears are in control, making the resistance at 23,821 a crucial upside barrier. If this resistance holds, the bears will target the 23,238-23,355 zone.

Technical analyst Nagaraj Shetti also notes that the Nifty's overall trend remains negative amid volatile movements. He suggests watching support levels around 23,260-23,000, with immediate resistance at 23,600.

Rupak De further predicts subdued sentiment in the short term, with potential declines toward 23,300 or 23,000. On the upside, resistance is observed at 23,550-23,600. Jatin Gedia from Mirae Asset Sharekhan adds that while the Nifty is approaching the November 2024 low (23,263), a positive divergence on the momentum indicator suggests that a new low in prices has not been accompanied by a new low in momentum, indicating a potential for stabilization. However, the fall may continue with a trailing stoploss strategy.

As bearish sentiments dominate the market, analysts suggest a cautious approach for the coming days. Investors should stay alert to stock-specific movements and be mindful of resistance and support levels as the market navigates through uncertainty.