Sensex Today, January 23: Relief Rally Faces Nifty 25,500-25,600 Wall
Sensex today opened higher as risk sentiment improved after recent weakness. The index gained about 398 points while the Nifty rose roughly 132, led by a relief rally on easing geopolitical tensions. Derivatives signals show sellers active near 25,500–25,600, with a heavier wall at 26,000 Calls. VIX remains elevated, so swings may stay sharp. Traders now look to U.S. GDP and core inflation later today and the BoJ policy decision tomorrow for fresh direction.
Relief rally after a three-day slide
Sensex today recovered after a three-day slide, with buying returning on easing geopolitical tensions. Reports showed broad gains and improved sentiment as the market added back a part of recent losses, with the Sensex up about 400 points. This aligns with the tone reported by The Hindu’s market wrap source.
Volatility stayed high. The India VIX remained elevated, which usually pulls option premiums higher and keeps intraday reversals fast. Sensex today reflected that push and pull as traders avoided aggressive chases and preferred dips for entries. The bounce was constructive, but sustained follow-through will likely need confirmation from global data and a calmer VIX print.
Derivatives hint at a 25,500–25,600 wall
Options positioning shows heavy Call open interest around 25,500–25,600 on the Nifty 50, creating a short-term supply zone. A larger Call OI wall sits near 26,000, capping upside unless fresh long futures and call covering kick in. With VIX high, option writers gain cushion, so bulls may need strong breadth and volumes to force a clean breakout.
For Sensex today, many short-term traders may fade sharp spikes into the 25,500–25,600 band and reassess on a closing basis. A firm close above could open a quick run toward 26,000 where supply is heavier. Moneycontrol’s trade setup also flags key zones for the day source. Position sizing and tight stops remain crucial.
Global cues in focus
Later today, the U.S. GDP print and core inflation data could shift Treasury yields and the dollar. That matters for foreign flows into India and risk appetite. A softer inflation read may support equities, while a hot print could lift yields and weigh on risk. Sensex today will likely take cues from these numbers through the session and into tomorrow.
The Bank of Japan sets policy tomorrow. Any shift in guidance can move the yen and ripple across Asian equities. If global risk holds up, it would aid follow-through buying. If volatility rises, India may see profit-taking near overhead zones. GIFT Nifty will offer early cues before the cash market opens, helping traders frame intraday bias.
Nifty 50 levels and intraday plan
Nifty share price action near 25,500–25,600 is key. A strong, broad-based move and close above this band can extend the relief toward 26,000, where calls are thick. Failure there keeps a range-bound day in play. Watch VIX and the dollar index after U.S. data for confirmation before adding risk on breakouts.
For Sensex today, focus on liquid index heavyweights to manage slippage. Prefer pullbacks to supports instead of chasing gaps. Defensives and high-quality large caps can help balance risk while the VIX stays high. Use staggered entries, pre-defined stops, and avoid oversized positions into data releases to protect capital.
Final Thoughts
Sensex today shows improving sentiment, yet the market still faces a tough band at 25,500–25,600 on the Nifty. The path higher likely needs a decisive close above that range, followed by follow-through toward the 26,000 supply zone. Until then, we see a buy-on-dip bias inside a volatile range. Keep trades smaller, tighten stops, and review positions ahead of the U.S. GDP and core inflation prints later today. BoJ’s policy tomorrow could sway Asia’s risk tone. Let GIFT Nifty and early breadth guide the open, then align with price, volume, and VIX before scaling up risk.
FAQs
Why is Nifty 50 facing resistance at 25,500–25,600?
Derivatives data shows heavy Call open interest around 25,500–25,600, which often acts as a supply zone. Sellers defend this band to keep options profitable. A strong close above that area can force call covering and open room toward 26,000, but weak breadth or high VIX can stall the move.
How should I trade Sensex today with volatility high?
Trade smaller, use tight stops, and avoid chasing spikes. Consider buying dips toward support and take partial profits quickly. Wait for a clear close above 25,500–25,600 before committing to breakout trades. Monitor VIX, GIFT Nifty, and global data timing to avoid adding risk just before key releases.
What global events could move Indian markets today and tomorrow?
U.S. GDP and core inflation later today may shift Treasury yields and the dollar, influencing foreign flows into India. Tomorrow’s Bank of Japan decision can move Asian equities via currency and rate expectations. A supportive backdrop can fuel follow-through, while a risk-off turn could trigger profit-taking near resistance.
How can GIFT Nifty help with my intraday plan?
GIFT Nifty provides a pre-open snapshot of sentiment and likely gap direction. Use it to frame the opening bias, then confirm with early cash market breadth, price action near 25,500–25,600, and VIX trends. Avoid relying on it alone; combine with risk management and levels before executing trades.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
