Nifty Technical Outlook

Market Closing: Tuesday, December 24, 2024

The Nifty ended the session at 23,727.65, declining by 25.80 points or 0.11%. The bearish trend may persist if the index breaches the key intraday support level at 23,650.

In the previous session, the Nifty opened with a positive bias at 23,769.10 and briefly touched the day’s high of 23,867.70 during the morning trade. However, it gradually lost momentum, hitting an intraday low of 23,685.20 before closing marginally lower. Sector-wise, only FMCG and Auto closed with gains, while sectors like Metals, PSU Banks, Media, and IT dragged the index down.

The market breadth was slightly positive, with 1,412 stocks advancing, 1,274 declining, and 96 remaining unchanged. On the Nifty 50, the top gainers were Tata Motors, Adani Enterprises, Eicher Motors, and Nestle India, while major laggards included Power Grid, JSW Steel, SBI Life, and Titan.

Technical Analysis

Momentum indicators suggest a negative bias, with the Nifty trading below its short-term and medium-term moving averages. The index formed a small black candle on the daily chart, closing slightly below the previous day’s level. This formation indicates a continuation of the bearish sentiment.

The index must decisively break below 23,650 for the bearish trend to continue, potentially leading to further declines. Conversely, consolidation or recovery is possible if the index holds above this level. A shift toward a positive trend would require a breakout above the intraday resistance at 23,865.

Traders should closely monitor these levels for intraday and positional strategies.

Support Levels: Intraday: 23,650, 23,530, 23,400 Positional: 23,300, 22,750

Resistance Levels: Intraday: 23,865, 23,965–24,060 Positional: 23,900, 24,500

Bank Nifty Technical Outlook

In the last trading session, Bank Nifty ended at 51,233.00, losing 84.60 points. The technical indicators point to a negative trend, as the index continues to trade below its short-term and medium-term moving averages. Additionally, the formation of a black candle on the daily chart, coupled with a close below the previous day's level, reinforces the bearish sentiment.

On the downside, the immediate intraday support lies at 51,100. A breach of this level could extend the bearish trend in the coming sessions. Conversely, the nearest intraday resistance is at 51,400, where a breakout could trigger a pullback rally.

 For intraday traders, monitoring these levels will be crucial to identifying potential trade opportunities. Positional traders should keep an eye on the broader support and resistance levels to assess market direction over the short term.

Key Levels to Watch

Intraday Levels (15-Minute Charts): Support: 51,100, 50,800, 50,500 Resistance: 51,400, 51,700, 52,000

Positional Levels: Support: 51,000–50,000 Resistance: 52,000–53,000