NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Monday, December 09, 2024

The Nifty ended the previous session at 24,619.80, registering a decline of 58.80 points or 0.24%. The index displayed a downward bias, which could persist if it moves below the immediate intraday support level of 24,580.

During the session, the Nifty opened positively at 24,633.90 and briefly touched an intraday high of 24,705 in the morning trade. However, the index gradually declined to hit an intraday low of 24,580 before stabilizing and closing at 24,619.80. Sectorally, metals, realty, IT, and financial services showed gains, while FMCG, media, auto, and PSU banks lagged.

The market breadth was positive, with 1,434 stocks advancing, 1,205 declining, and 151 remaining unchanged. Key Nifty gainers included WIPRO, L&T, SBILIFE, and TATASTEEL, while the top losers were TATACONSUM, HINDUNILVR, TATAMOTORS, and AXISBANK.

From a technical perspective, momentum indicators suggest a generally positive trend, as the Nifty continues to trade above its short-term moving averages. However, the formation of a small black candle on the daily chart, coupled with a close below the previous session's level, indicates a mildly negative bias. On the downside, immediate intraday support is at 24,580, followed by 24,500. On the upside, resistance lies at 24,700.

The Nifty currently sits at a critical juncture. While momentum indicators point to underlying strength, the small black candle formation highlights potential consolidation or further downside risks. Traders should closely monitor the 24,580 support level for signs of continued weakness or a possible rebound. A breakout above 24,700 is crucial for regaining bullish momentum and targeting higher levels.

Intraday Levels: Support: 24,580, 24,500, 24,425 Resistance: 24,700, 24,775, 24,850

Positional Trading Levels: Short-term Support: 24,500–23,800 Resistance: 25,000–25,500

BANK NIFTY TECHNICAL OUTLOOK

In the last trading session, Bank Nifty closed at 53,407.75, recording a decline of 101.75 points. Momentum indicators continue to signal a positive trend, as the index stays above its short-term and long-term moving averages. However, the formation of a small white candle on the daily chart, accompanied by a close below the critical short-term support of 53,500, reflects a slightly negative bias.

Bank Nifty's immediate direction depends on how it interacts with the critical support at 53,300 and resistance at 53,500. A break below the support could extend the bearish trend, while surpassing the resistance may set the stage for a recovery. Traders should closely monitor these levels to identify potential trading opportunities.

Key Levels for Traders Intraday Support: 53,300, 53,100, 52,900 Intraday Resistance: 53,500, 53,700, 53,900

Positional Support: 52,500–51,650 Positional Resistance: 53,500–54,400