NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Thursday, January 02, 2025

The Nifty closed at 24,188.65 in the previous session, gaining 445.75 points or 1.88%. A continued uptrend is likely if the index surpasses 24,225.

The session began with a positive opening at 23,783, maintaining momentum throughout the day and reaching an intraday high of 24,226.70 before settling at 24,188.65. Most sectors, except media, ended on a positive note, with notable gains in auto, IT, financial services, and private banking. Market breadth remained favorable, with 1,718 stocks advancing, 985 declining, and 137 remaining unchanged. Top gainers in the Nifty were Eicher Motors, Bajaj Finserv, Bajaj Finance, and Maruti, while the primary losers were Sun Pharma and Britannia.

From a technical perspective, momentum indicators reflect a neutral trend, but the Nifty has closed above both its short-term and long-term moving averages. The formation of a long white candle on the daily chart, closing well above the previous day's level, signals the potential for further bullish momentum. Key intraday resistance is at 24,225, with immediate support at 24,100. A breakout above 24,225 could extend the bullish trend, while consolidation is possible if the resistance remains unbroken. Short-term support levels are around 23,950.

Trading Levels: Intraday Support: 24,100, 24,000, 23,900 Intraday Resistance: 24,225, 24,330–24,450

Positional Support: 23,950–23,500 Positional Resistance: 24,500–24,800

BANK NIFTY TECHNICAL OUTLOOK

In the preceding session, Bank Nifty closed at 51,605.55, marking a significant gain of 544.95 points. Despite momentum indicators suggesting a negative trend, the index managed to close above its short-term moving averages. Additionally, the formation of a long white candle on the daily chart and a close near the day’s high reflect a positive bias. On the upside, the immediate short-term resistance lies at 51,800. A breakout above this level could extend the positive trend in the coming sessions. On the downside, the nearest intraday support is at 51,350.

Intraday Levels: Support: 51,350, 51,100, 50,850 Resistance: 51,650, 51,925, 52,200

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

Conclusion: The strong close above short-term averages and the bullish candlestick pattern indicate potential for further upside. Traders should monitor the 51,800 resistance closely; a sustained move above this level may drive the index toward 52,800. However, failure to breach resistance could lead to consolidation or a pullback, with 51,350–50,600 providing support