Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 19

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Sensex declined 313.90 points, or 0.44%, to close at 71,186.86, while the Nifty 50 settled 109.70 points, or 0.51%, lower at 21,462.25. Nifty 50 formed a small positive candle on the daily chart with upper and lower shadow. Technically, this pattern indicates a formation of high wave type candle pattern at the lows, which signals high volatility in the market.

Also Read: Indian stock market: 7 key things that changed for market overnight - Gift Nifty, S&P near record, US jobless claims “After showing a reasonable weakness from new highs (22,124), the formation of high waves at the lows calls for an upside bounce in the market. The bullish chart pattern like higher tops and bottoms seems to have negated, as Nifty slipped below the recent higher low of 21,448 of 10th January on Thursday. The sharp opening downside gap of Wednesday is unfilled and if this gap remains open for the next 2-3 sessions, then that gap could be considered as a bearish breakaway gap, which could possibly hint chances of more weakness in the near term," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes the short-term trend of Nifty remains weak. Having declined sharply, there is a possibility of a pull back rally in the short term, which is expected to be a sell on rise opportunity. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Here’s what to expect from Nifty 50 and Bank Nifty today: The Nifty 50 slipped below the rising trendline on the daily chart, suggesting a bearish trend reversal.