Taking Stock: Market extends gain; Sensex up 225 pts, Nifty above 23,200

On the sectoral front, auto, media, pharma shed 0.5-1 percent, while IT, realty, power rose 0.5-1 percent.

Axis Bank, M&M, Bajaj Finserv, Shriram Finance, Bajaj Finance were among major losers on the Nifty, while gainers were Trent, Power Grid Corp, NTPC, Kotak Mahindra Bank, Maruti Suzuki.

BSE Midcap index ended flat, while Smallcap index was up 0.3 percent.

Outlook for January 16

Aditya Gaggar Director of Progressive Shares

The lacklustre trade comes to an end on a positive note at 23,213.20 with gains of 37.15 points. Realty emerged as the top performer, followed by IT and Energy, while Media witnessed significant correction. Pharma and Auto stocks also underperformed. Mid and Small-cap stocks outpaced the Frontline Index, showing gains of over 0.40%.

The consecutive DOJI candlestick patterns indicate indecisiveness between Bulls and Bears, though the overall trend remains bearish. A move above 23,750 could signal a reversal, while a breach of 23,050 could push the Index lower to 22,800. Immediate support is at 23,140, and resistance is at 23,350.

Ajit Mishra – SVP, Research, Religare Broking

Markets traded in a subdued manner and ended marginally higher, extending Tuesday's trend. Following a flat opening, the Nifty moved within a narrow range before settling at 23,213.20. Sector-wise, a mixed performance continued, with gains in realty, IT, and energy, while pharma and auto sectors closed in the red. Broader indices also remained lackluster, posting gains of nearly 0.5% each.

The market seems to be pausing as recovery attempts face resistance, though select heavyweight stocks are limiting the downside. Investors are now closely eyeing earnings from Reliance, Infosys, and Axis Bank for directional cues. While the broader trend remains negative, a decisive break above 23,300 could lead to a rebound toward 23,500. On the other hand, a dip below 23,100 may trigger the next leg of a decline, pushing the index toward 22,700. Traders should align their strategies with a strong focus on risk management.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

After showing a gradual upside bounce on Tuesday Nifty extended its breather rally with range bound action on Wednesday and closed the day with minor gains of 37 points. Nifty opened on a positive note and shifted into a narrow range movement with volatility that continued for entire session.

A small red candle was formed on the daily chart with minor upper and lower shadow. This market action signal choppy movement in the market with positive bias.

The negative chart pattern like lower tops and bottoms is intact and present pull back could be in line with the new lower top of the pattern. But the lower top reversal needs to be confirmed at the highs.

The near-term trend of Nifty is still weak. A sustainable move above the hurdle 23300-23350 levels could further strengthen the upside bounce in the market. At the lows 23050 is going to be a crucial support for the market.

Rupak De, Senior Technical Analyst at LKP Securities

Another day of choppy trades was witnessed as the market lacked direction. However, sentiment is likely to favor a recovery in the short term, with the potential to reach 23,400 on the higher end. The sentiment is expected to remain positive as long as the market stays above 23,000. A buy-on-dips strategy appears to work well in the current scenario.

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