Market Closing View for 12th Jan by Ponmudi R, CEO, Enrich Money

Indian equity markets staged a sharp V-shaped recovery in today’s session, with the Nifty 50 rebounding strongly from the 25,473 support zone, snapping a five-session consecutive sell-off. Market sentiment improved on supportive global cues, including renewed optimism around India–U.S. trade talks after remarks by the newly appointed U.S. ambassador to New Delhi, Sergio Gor, on continued bilateral engagement and fresh discussions scheduled for Tuesday (January 13). By the close, the benchmark indices had erased early losses and moved into positive territory, aided by short covering from oversold levels.

Nifty 50

The Nifty 50 came under selling pressure in early trade, slipping below 25,500 and briefly breaching its 100-day EMA, before marking an intraday low at 25,473. Strong buying interest emerged near this demand zone, triggering a mid-session rebound and forming a recovery candle from oversold territory. The index reclaimed levels above the previous close and is now attempting to stabilize around the 25,750–25,800 zone.

While momentum indicators remain broadly bearish, the 100-day EMA (25,540–25,600) acted as a crucial support and helped initiate the bounce. The recovery appears largely driven by gradual short covering, indicating that the move is corrective in nature rather than a confirmed trend reversal at this stage. Immediate resistance is placed at 25,800–25,870, which remains the next key hurdle. Intraday sentiment has turned neutral to mildly positive, though the broader undertone continues to remain cautious.

Bank Nifty

The Bank Nifty opened on a flat note near 59,233 but failed to sustain higher levels and came under selling pressure during the early part of the session, reflecting continued weakness on the upside. The index traded below its falling trendline for most of the day, keeping the intraday structure cautious. 

Selling pressure dragged Bank Nifty towards the 59,000 support zone, where strong buying interest emerged. This led to a sharp intraday rebound, resulting in the formation of a bullish hammer candle on the daily chart, indicating a clear rejection of lower levels and signaling a potential short-term reversal from the bottom of the support zone. However, the recovery remained corrective and faced rejection near the 59,700 zone, aligning with the declining trendline resistance. Bank Nifty ended the session around 59,400, below key resistance levels, suggesting that while downside risk has reduced, a confirmed trend reversal is yet to be established. 

Immediate resistance for Bank Nifty stands at 59,600, followed by 59,900. A sustained move and decisive close above 59,600 would confirm bullish continuation and open the path towards 59,900–60,000. On the downside, immediate support is placed at 59,000, followed by 58,800. As long as the index trades below the falling trendline, the broader bias remains cautious, with markets likely to remain range-bound while awaiting further confirmation.

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