Markets plummeted lower, losing nearly 1%, continuing the prevailing correction phase. After the initial downtrend, the Nifty index gradually declined throughout the session, engulfing the movement of the last trading session. Markets took another hit ahead of Federal Reserve Chair Jerome Powells' speech and Nifty slid sharply from 18100 as investors weighed hawkish comments from two Federal Reserve policymakers that countered hopes that the US Federal Reserve could reverse aggressive monetary tightening. The decline was widespread, with banks, metals, real estate and IT among the top losers. The broader indices also came under pressure and each lost almost half %. Nifty gave up gains from the previous session on January 10th, which was dragged down by weak global cues. After hitting a daily low at 2:45 p.m., Nifty recovered weakly to close 1.03% or 187 points lower at 17914. Trading sentiment has been very weak and most of the sluggish external factors are prompting investors to book gains on a regular basis. At the close, the Sensex was down 631 points, to 60115 and the Nifty was down 187 points, to 17914. Technically, the Nifty has formed a long bearish candle on the daily charts, suggesting further weakness from current levels. For bulls, 17950 would be the key level to watch out for and above that the index could retest the 18000-18200 level dragging the index down to 17800-17600. Yesterday's bullish harami was not confirmed and sellers turned aggressive today. Nifty has not reacted to bullish movements in the international markets for the past few days. It's a matter of time before that happens. Expect Nifty to be volatile in the coming days. The Bank Nifty index experienced selling pressures throughout the trading session, ending near the daily low ahead of the Fed Chair's speech. The index faces stiff resistance on the upside at the 43000 level where most of the open interest is building on the call side. The downside is supported at 42500 and if it breaks further selling pressure will be directed towards the 42000 -41500 zone which will be the last line of defense for bulls.
Resistance: 18200, 18300, 18400
Support: 18100,
18000, 17900
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