NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Wednesday, December 20, 2023
On Wednesday, December 20, 2023, the Nifty concluded the trading session at 21,150.15, registering a loss of 302.95 points or -1.41 percent. The potential continuation of the downtrend in the coming days is signaled if the Nifty drops below the support range of 21,000-21,100.
The Nifty commenced at the 21,543.50 level on a positive note, reaching a record high of 21,593 during morning trade. However, the index failed to sustain the momentum, leading to a sharp decline and an intraday low of 21,087.30 before settling at 21,150.15. All sectors closed with a negative bias, particularly media, PSU banks, metal, and realty.
Market breadth displayed a negative trend, with 279 stocks rising, 2,083 falling, and 127 remaining unchanged. Top gainers under the Nifty included ONGC, TATACONSUM, BRITANNIA, and HDFCBANK, while major losers were ADANI PORTS, ADANIENT, UPL, and TATASTEEL.
From a technical standpoint, the Nifty remains positioned above both medium-term and long-term moving averages, with momentum indicators supporting a positive trend. However, the formation of a long black candle on the daily chart, coupled with a close below the previous four days' closing levels, suggests a negative bias. The index has short-term support in the 21,000-21,100 range, and a breach could lead to the continuation of the negative trend. Conversely, a pullback rally may be anticipated from this support area.
Intraday support levels are identified at 21,100-21,000-20,900, with resistance levels at 21,200-21,275-21,350 based on 15-minute charts. For positional traders, short-term support levels are maintained at 21,000-20,500, with resistance observed at 21,600-22,000.
BANK NIFTY UPDATE
In the recent trading session, Bank Nifty concluded at 47,445.30, reflecting a decline of 425.60 points. Analyzing from a technical standpoint, momentum indicators continue to signal a positive trend, and the index remains positioned above the long-term moving averages. However, a black candle formation on the daily chart, coupled with a close near the short-term support at 47,400, raises the possibility of a downtrend today. Conversely, a rebound is anticipated if the index holds above this support level.
For intraday traders, the support levels are identified at 47,400, 47,200, and 47,000, while resistance levels can be pinpointed at 47,600, 47,800, and 48,000, as indicated by the 15-minute charts.
Positional traders are advised to monitor short-term support levels at 47,400-46,400, with resistance observed at 48,500 - 49,500. Stay vigilant for potential market movements within these levels.
