NIFTY Technical Outlook

Based on Market Closing on Monday, December 30, 2024

The Nifty closed at 23,644.90 in the last session, registering a decline of 168.50 points (-0.71%). A further downtrend is likely if the index breaches the critical support level of 23,600.

The session began on a negative note at 23,796.90, with the Nifty reaching an intraday high of 23,915.30 during morning trade. However, the index failed to sustain upward momentum, gradually declining to an intraday low of 23,599.30 before closing at 23,644.90. Sector-wise, pharma, IT, and FMCG closed positively, while media, realty, auto, and metals were the major laggards. The market breadth was weak, with 844 stocks advancing, 1,840 declining, and 156 remaining unchanged. Notable gainers included Adani Enterprises, HCL Tech, Tech Mahindra, and Sun Pharma, while major losers were Hindalco, BEL, Titan, and Tata Motors.

From a technical perspective, momentum indicators reflect a negative bias, with the Nifty trading below both its short-term and long-term moving averages. The formation of a black candle on the daily chart and a close below the recent trading range signals the possibility of a continued downtrend. Key intraday support lies at 23,600, and a breach below this level could accelerate the decline. Immediate intraday resistance is seen at 23,700.

The Nifty remains under selling pressure, with a continuation of the downtrend likely if it falls below 23,600. Traders should exercise caution and closely monitor these critical levels. A breakout above 23,700 may provide temporary relief, but sustained movement beyond 23,900 is needed to signal recovery.

Trading Levels  Intraday Support: 23,600, 23,500, 23,400 Intraday Resistance: 23,700, 23,800, 23,900 (15-minute charts)

Positional Support: 23,300–22,750 Positional Resistance: 23,900–24,500

BANK NIFTY Technical Outlook

Bank Nifty closed at 50,952.75 in the last session, recording a sharp decline of 358.55 points. Momentum indicators continue to point to a negative trend, with the index trading below its short-term and medium-term moving averages. The formation of a black candle on the daily chart, coupled with a close below the previous day's level, suggests the likelihood of further downside.

On the lower side, Bank Nifty has immediate intraday support at 50,675. On the upside, the nearest intraday resistance is seen at 51,075. The technical outlook for Bank Nifty remains bearish, with the potential for continued downside if the index breaks below 50,675. Intraday and positional traders should approach cautiously, closely monitoring key support and resistance levels. A move above 51,075 could provide a temporary respite, but sustained recovery would require a breakout beyond 51,800.

Trading Levels Intraday Support: 50,675, 50,400, 50,100 Intraday Resistance: 51,060, 51,400, 51,700

Positional Support: 50,600–49,600 Positional Resistance: 51,800–52,800