Sensex prediction for tomorrow, 20 January, Monday: Ideal strategy for short-term traders - Key support levels - Markets

Updated Jan 19, 2025 09:13 IST

BSE Sensex prediction for tomorrow 20 January Monday

Photo : ET Now Digital

Sensex prediction for tomorrow: What should be the ideal strategy for short-term traders?

Sensex prediction for tomorrow, 20 January, Monday: The markets continued their consolidation phase, shedding nearly a percent as the corrective trend persisted. Domestic benchmark indices Sensex and Nifty declined on Friday, January 17 after a three-day rally.

The 30-share BSE Sensex declined 423.49 points to close at 76,619.33 while the NSE Nifty 50 index settled 108.60 points at 23,203.20 after a volatile day of trade. Sectorally, there was a mixed trend, with metals and energy showing decent gains, while IT stocks plunged sharply due to weak earnings, followed by declines in the realty and FMCG sectors.

Market experts anticipate the market to maintain a cautious tone this week as well due to several domestic and global factors. Ajit Mishra – SVP, Research, Religare Broking, said that key corporate earnings from heavyweights such as Hindustan Unilever, HDFC Bank, ICICI Bank, BPCL, and Hindustan Petroleum are slated for release.

Additionally, the swearing-in of US President Donald Trump on January 20 is expected to draw significant attention. So, how should traders tread this week?

Sensex Prediction for Tomorrow, 20 January, Monday

During the week, after the correction, the market found support near 23050/76200 and bounced back sharply; however, it registered profit booking at higher levels once again. “Technically, on the daily and intraday charts, it is still holding a lower top formation, which suggests further weakness from the current levels,” said Amol Athawale, VP-Technical Research, Kotak Securities.

The expert is of the view that the current market texture is weak but oversold. Hence, level-based trading would be the ideal strategy for short-term traders.

For bulls, 76,900 would act as a key resistance level. Above this level, we could see an extension of the pullback rally up to 77,500 and 77,800, or the 20-day Simple Moving Average (SMA). On the other hand, 76,300 will serve as a key support zone, Athawale added.

Below this level, the market could slip to 76,000, with further weakness potentially dragging the index down to 75,700.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

End of article

Source link