NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Tuesday, December 10, 2024

The Nifty closed at 24,610.05 in the previous session, down by -8.95 points or -0.04%. The index continues to face downward pressure, with a key short-term support level at 24,500.

In the last session, the Nifty opened positively at 24,625.70 and reached an intraday high of 24,677.80 during the morning trade. However, the index gradually declined to an intraday low of 24,510 before closing at 24,610.05. Among the sectors, realty, IT, PSU banks, and financial services gained, while media, pharma, and auto saw declines. Market breadth was slightly negative, with 1,272 stocks advancing, 1,376 declining, and 142 remaining unchanged. The top gainers were SHRIRAMFIN, BAJFINANCE, WIPRO, and HCLTECH, while the major losers included BHARTIARTL, ADANIPORTS, HDFCLIFE, and DRREDDY.

From a technical perspective, momentum indicators continue to signal a positive trend, as the Nifty remains above its short-term moving averages. However, the formation of a small black candle on the daily chart, with a close below the previous day's level, suggests mild selling pressure. The long lower shadow of the candle indicates that buying support has emerged near the key support zone. On the downside, the index has strong support at 24,500.

The Nifty remains at a critical juncture. At the same time, the momentum indicators suggest underlying strength, the index's inability to close above 24,700 highlights potential consolidation. Traders should closely watch the 24,500 support level for signs of sustained buying or further weakness. A breakout above 24,700 could pave the way for higher levels, while a breach of 24,500 might signal a short-term downtrend.

 Key Levels to Watch  Intraday Support: 24,580, 24,500, 24,425 Intraday Resistance: 24,700, 24,775–24,850

Positional Support: 24,500–23,800 Positional Resistance: 25,000–25,500

BANK NIFTY TECHNICAL OUTLOOK

In the previous session, Bank Nifty closed at 53,577.70, registering a gain of 169.95 points, signaling a positive trend. Technically, momentum indicators confirm this bullish outlook, as the index continues to trade above its short-term and long-term moving averages. Additionally, the formation of a small white candle on the daily chart, accompanied by a close above the short-term resistance of 53,500, reinforces the positive bias for the index.

Bank Nifty is well-positioned for further gains, provided it sustains above the key support level of 53,500. Intraday traders should monitor the 53,700 resistance closely, as a breakout could signal continued upward momentum toward 54,000 and beyond. However, a move below 53,500 may lead to short-term consolidation or a minor pullback.

Key Levels to Watch Intraday Support: 53,500, 53,300, 53,100 Intraday Resistance: 53,700, 53,900, 54,100

Positional Support: 53,500–52,500 Positional Resistance: 54,400–55,500