Highlights

  • Nifty 50 drops 1.37%, nearing oversold RSI.
  • Nifty IT, Auto, Energy indices reflect bearish trends.
  • Metal, Infra indices weak; cautious sentiment persists.

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Indian Stock Market sector-wise performance: Which sector has performed well today - January 21, 2025

On January 21, 2025, the Indian stock market indices showcased a predominantly negative performance, with most sectors experiencing downward trends. Key indices such as Nifty 50, Nifty Auto, and Nifty Bank ended lower, influenced by bearish sentiments.
Indian Stock Market sector-wise performance: Which sector has performed well today - January 21, 2025

The national stock market indices showed varied performances on January 21, 2025, reflecting the economic sentiment.

In this article, we analyze the performance of key national indices including the Nifty 50,Nifty Bank,Nifty IT,Nifty Auto,Nifty Pharma,Nifty FMCG,Nifty Infra,Nifty Energy and Nifty Metal.

Nifty 50 Technical Analysis on January 21, 2025

The "Nifty 50" displayed a noticeable decline on January 21, 2025, as indicated by a percentage change of -1.37% and a points decrease of 320.10.

Technical Indicators

The 50-Day Exponential Moving Average (EMA) for the Nifty 50 stands at 23,668.02, while the 200-Day EMA is 23,783.22. Both these values are above the current closing price of 23,024.65, indicating a bearish posture in the longer term.

The Relative Strength Index (RSI) is at 32.67, which is approaching the oversold territory, traditionally considered to be below 30. This suggests that the market could potentially be nearing a bottom, although the RSI is not deep in the oversold zone just yet.

Looking at the Moving Average Convergence Divergence (MACD), with a value of -189.98 and a signal line of -163.62, we observe a negative MACD position. This reflects a downward momentum in the market, as the MACD illustrates both bearish sentiment and potential for more selling pressure.

Market Sentiment

Based on these technical indicators, the Nifty 50 appears to be in a downtrend. The placement of the current price below both the 50 and 200 EMAs confirms the bearish sentiment. The RSI, being close to oversold, hints that although there might be some reprieve or potential reversal in the near term, the overall sentiment remains negative as of now.

The MACD further solidifies this negative outlook, as it signifies continued downward pressure. In conjunction, the RSI and MACD suggest that traders are predominantly bearish, but they should be cautious of any signs pointing towards a potential trend reversal.

Date:

January 21, 2025

The "Nifty Auto" index on this day saw a movement that may attract the attention of investors focused on technical analysis. The index experienced a percentage change of -1.63% with a points change of -368.60, closing at 22,303.20.

Technical Indicators Analysis:

The 50-day Exponential Moving Average (EMA) for Nifty Auto currently stands at 23,071.62. This value is conspicuously above the closing price, indicating that the short-term price action is below the medium-term trend. Meanwhile, the 200-day EMA is recorded at 23,142.07, and it also remains above the closing price, signaling a potential long-term bearish sentiment. Such a position of the moving averages suggests that the market may persist in a downward trend.

Regarding the Relative Strength Index (RSI), the current value is at 36.14. Typically, an RSI below 30 is considered oversold, and while 36 is not at that extreme, it still suggests caution as it indicates diminishing buyer strength.

The Moving Average Convergence Divergence (MACD) posted a value of -157.75 with the MACD Signal line being lower at -93.37. The negative MACD and its position below the signal line usher in a bearish stance, confirming potential downward momentum.

Market Sentiment:

Analyzing the performance of Nifty Auto through the lens of these technical indicators, it strongly suggests that the market might be caught in a downtrend. The juxtaposition of the 50 EMA and 200 EMA with the current closing price supports this bearish view. The RSI, nearing oversold conditions, signals that sellers are in control, with reduced purchasing pressure. Additionally, the negative MACD, underscoring its divergence from the signal line, further validates the view of prevailing bearish momentum. Therefore, traders should remain cautious and may require a shift in strategy until more bullish signs are apparent.

The stock name "Nifty Bank" experienced a noteworthy change on January 21, 2025, closing at 48,570.90, which represents a points change of -779.90 from its previous close of 49,350.80. Notably, the percentage change was -1.58%.

Technical Indicators Analysis:

The 50-day Exponential Moving Average (EMA) of Nifty Bank stands at 50,353.55, while the 200-day EMA is at 50,758.10. The fact that the current closing price is below both the 50 EMA and 200 EMA indicates a bearish sentiment in the market, suggesting a possible downtrend.

The Relative Strength Index (RSI) is currently at 35.62. An RSI value below 30 typically indicates that a stock is oversold, while an RSI above 70 suggests it is overbought. The current RSI is close to the oversold territory, indicating weakened momentum in the Nifty Bank.

Furthermore, the Moving Average Convergence Divergence (MACD) is at -652.13, with a MACD Signal of -619.01. The negative MACD value, in conjunction with it being below the MACD Signal, supports the downtrend analysis, suggesting bearish momentum.

Market Sentiment Evaluation:

Based on the technical indicators analyzed, the market sentiment for Nifty Bank can be considered bearish. The price is below both the 50-day and 200-day EMAs, which is indicative of a prolonged downtrend. Furthermore, the relatively low RSI value nearing the oversold region, combined with a negative MACD, signals continued pressure on Nifty Bank with limited buying interest currently evident in the market.

Stock Name:

Nifty Energy

On January 21, 2025, the Nifty Energy index experienced a notable shift in its market performance. The index closed at 34,308.5, representing a percentage change of -1.89% from the previous close of 34,970.55. This downward movement translated into a points change of -662.05.

Technical Indicators:

The analysis of Nifty Energy based on key technical indicators provides a clearer picture of the market conditions. The 50-day Exponential Moving Average (EMA) is recorded at 35,005.10, while the 200-day EMA stands at 35,248.34. These figures indicate that the current price is beneath both the 50-day and 200-day EMAs, suggesting a bearish trend.

The Relative Strength Index (RSI) is a crucial momentum indicator that measures the speed and change of price movements; for Nifty Energy, the RSI is at 42.84. This signals a relatively neutral position, slightly edging towards the oversold territory, which typically implies weaker momentum in the market.

The Moving Average Convergence Divergence (MACD) is recorded at -310.30, with a MACD signal line at -364.44. The negative MACD signifies that the short-term moving average is below the long-term moving average, reinforcing the bearish sentiment.

Market Sentiment:

The technical indicators collectively suggest that Nifty Energy is currently experiencing a downtrend. The RSI, while not indicating extreme conditions, is approaching the oversold threshold, hinting at further downside potential unless buyers regain control. Meanwhile, the MACD's positioning below the signal line corroborates the bearish outlook, highlighting the sustained downward momentum that Nifty Energy might continue to face.

Nifty FMCG: Technical Analysis for January 21, 2025

On January 21, 2025, the Nifty FMCG experienced a modest decline. The stock saw a percentage change of -0.21%, translating to a points change of -115.40 from its previous close, settling at 55,622.65.

Technical Indicators

The 50 Exponential Moving Average (EMA) was recorded at 56,378.44. This serves as a crucial short-term indicator, reflecting the stock's recent price performance. Meanwhile, the 200 EMA stood at 56,431.36, aligning closely with the 50 EMA. Both these measures are typically used to identify the long-term trend direction, with the 200 EMA providing additional weight due to its broader historical scope.

The Relative Strength Index (RSI) was observed at 41.54, indicating that the stock is nearing oversold conditions. An RSI below 30 generally flags oversold conditions, whereas an RSI above 70 indicates overbought conditions.

The Moving Average Convergence Divergence (MACD) was recorded at -224.34 with a Signal Line at -96.28. The negative MACD value, being significantly lower than the Signal Line, suggests bearish momentum in the stock.

Market Sentiment

The market sentiment for the Nifty FMCG on this date was predominantly bearish. The stock's position below both the 50 EMA and 200 EMA points to a potential downtrend, reinforcing the weakness in the stock's recent performance. The RSI level of 41.54 corroborates the current weak sentiment, although it does not yet signal an extreme oversold condition.

Furthermore, the MACD value being negative and significantly under the Signal Line highlights the strong presence of bearish pressure. This combination of technical indicators implies that the Nifty FMCG is currently in a downtrend. Investors should be cautious or perhaps look for other confirming signs of a market reversal before considering a bullish outlook.

Technical Analysis for Nifty IT on January 21, 2025

The Nifty IT index showed a decline in its performance, with a percentage change of -1.17% and a points change of -494.85. The index closed at 41,697.95, showing signs of weakness for the day.

Technical Indicators:

Examining the 50 EMA and 200 EMA, Nifty IT recorded values of 43,706.08 and 43,941.80 respectively. The position of the current price below both moving averages indicates a bearish sentiment in the market. These moving averages portray a continuation of the downtrend as the shorter EMA (50) is below the longer EMA (200), reinforcing the bearish momentum.

The Relative Strength Index (RSI) stands at 33.57, signaling that Nifty IT is approaching oversold territory. An RSI below 30 is typically viewed as a potential indicator for an oversold condition which might attract buyers, suggesting a possibility of a reversal, yet the current value suggests the market still might have room on the downside.

The MACD (Moving Average Convergence Divergence) is at -473.40, with the MACD Signal Line at -316.84. The negative MACD indicates bearish momentum, and since it's below the signal line, it suggests a continuation of the downtrend.

Market Sentiment:

The technical indicators point towards a downtrend for Nifty IT. The substantial gap between the current price and both 50 and 200 EMAs, along with the negative MACD and a low RSI, suggests an overall bearish sentiment. The RSI close to the oversold zone and the MACD's bearish indication help reinforce the market's negative trend. While these indicators suggest caution for bullish positions, potential consolidation could appear if RSI enters deeper into the oversold zone, prompting a watch for any reversal signals. However, for the moment, market participants should remain vigilant as the downward pressure continues to influence the Nifty IT index.

Technical Analysis for Nifty Infra on January 21, 2025

The Nifty Infra, represented by the stock symbol CNXINFRA, experienced a notable movement on January 21, 2025, with a significant percentage change of -1.68%. This translates to a points change of -142.35, closing the session at 8309.5.

Technical Indicators:

Analyzing the Exponential Moving Averages (EMAs), the 50 EMA and the 200 EMA provide key insights into the stock's medium to long-term trends. The 50 EMA stands at 8464.78, whereas the 200 EMA is slightly higher at 8514.61. This crossover suggests that the stock might be leaning towards a bearish trend, as the current price closed below both EMA levels.

The Relative Strength Index (RSI) is currently at 41.90. Typically, an RSI below 50 indicates potential bearish momentum. The Nifty Infra is approaching the oversold territory, which might attract buyers if the RSI dips below 30 but currently signals weak buying interest.

The Moving Average Convergence Divergence (MACD) indicator is at -65.19, with the MACD Signal line at -75.22. The MACD being negative indicates that the market is currently in a bearish cycle. However, the MACD line crossing above the signal line typically signals a potential upward reversal, which is not the case currently.

Market Sentiment:

The technical indicators collectively suggest that the Nifty Infra is experiencing a downtrend. The closing price below both the 50 EMA and 200 EMA, along with a negative MACD, strengthens the bearish sentiment. Although the RSI is not yet in the oversold territory, it indicates a lack of strong buying pressure. Investors might remain cautious, awaiting more concrete signals of any potential trend reversal. Overall, market participants are likely to interpret this analysis as indicative of ongoing bearish conditions for Nifty Infra.

Technical Analysis of Nifty Metal on January 21, 2025

Nifty Metal Performance: The Nifty Metal saw a percentage change of -0.94%, indicating a downward shift. The points change was -81.25 points, reflecting a decline from its previous position. This underscores a bearish stance for the metal index on the specified date.

Technical Indicators: In assessing the 50 EMA, valued at 8663.42, compared to the 200 EMA, which stands at 8750.90, we can infer potential bearish characteristics as the 50 EMA is below the 200 EMA, suggesting a shorter-term trend that may turn bearish. The Relative Strength Index (RSI) is at 44.47, suggesting a slightly oversold condition, but not at an extreme. This could imply upcoming weakness. The Moving Average Convergence Divergence (MACD) stands at -100.63, with the MACD signal line at -131.48, indicating that momentum is negative yet shows signs of moving towards potential convergence.

Market Sentiment: Based on the technical indicators, Nifty Metal is in a downtrend. The crossover of the 50 EMA below the 200 EMA supports this view. The RSI, being below 50, reflects a bearish or weakening market sentiment, although it has not yet reached oversold boundaries. Moreover, the MACD remaining below zero suggests persistent negative market momentum. However, because the MACD is less negative than the signal line, it might indicate a slowing pace in the bear trend, providing analysts and traders with potential anticipation of a correction or a mild recovery.

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