NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Thursday, December 19, 2024

The Nifty ended the session at 23,951.70, down by 247.15 points or 1.02%, signaling continued weakness. The downtrend is likely to persist if the index breaches the immediate support level of 23,900.

In the preceding session, the Nifty opened with a downward gap at 23,870.30 and traded within a narrow range of 23,870 to 24,000 throughout the day before settling at 23,951.70. Most sectors ended in the red, except for pharma. The major sectoral losers included IT, financial services, banks, and metals. The market breadth was negative, with 1,002 stocks advancing, 1,713 declining, and 112 remaining unchanged. Among Nifty constituents, the top gainers were DR REDDY, CIPLA, BPCL, and SUN PHARMA, while the major losers were BAJAJFINSV, ASIANPAINT, JSWSTEEL, and BAJFINANCE.

Technical Analysis

From a technical standpoint, momentum indicators suggest a negative bias, with the Nifty trading below its short-term and medium-term moving averages. The index formed a small white candle on the daily chart but closed significantly lower than the previous day’s close, reinforcing a bearish sentiment.

On the downside, the Nifty has immediate support at 23,900, and sustained trading below this level could extend the decline toward the next key support at 23,300. On the upside, the nearest intraday resistance is at 24,000, and a decisive move above this level is essential for any pullback rally.

Key Levels

Intraday Levels: Support: 23,870, 23,750, 23,600 Resistance: 24,000, 24,160-24,300

Positional Trading Levels: Support: 23,900, 23,300 Resistance: 24,500, 25,000

The Nifty's inability to sustain upward momentum and its position below critical moving averages highlight persistent bearishness. Traders should closely watch the 23,900 support level, as a breach could lead to further downside. Conversely, a move above 24,000 could trigger a short-term recovery. Caution is advised, with a focus on managing risk in the current volatile environment.

BANK NIFTY TECHNICAL OUTLOOK

Bank Nifty ended the session at 51,575.70, declining by 563.85 points, indicating sustained bearish momentum. The index remains below its short-term and medium-term moving averages, suggesting continued weakness in the near term.

In the previous session, the index formed a small white candle on the daily chart but closed significantly lower than the prior day’s close. This pattern reflects the prevailing negative sentiment. The technical setup and momentum indicators suggest a negative bias, with the Bank Nifty struggling to break out of its bearish trajectory. Traders should closely monitor the 51,300 support level, as a breach could lead to a deeper correction. Conversely, a decisive move above 51,675 is essential for any pullback rally. Maintaining caution and disciplined risk management is advised in the current market

Key Levels

Intraday Levels: Support: 51,300, 51,000, 50,700 Resistance: 51,675, 52,000, 52,300

Positional Trading Levels: Support: 51,000–50,000 Resistance: 51,750–52,750