NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Wednesday, January 1, 2025
The Nifty closed at 23,742.90, gaining 98.10 points (0.41%), signaling the potential for further uptrend if it surpasses the immediate resistance at 23,800.
The session began with a negative bias, opening at 23,637.70 and dipping to an intraday low of 23,562.80. However, the index gradually recovered, reaching an intraday high of 23,822.80 before closing positively. Except for realty and metal, all sectors exhibited a positive bias, led by auto, media, financial services, and private banks. Market breadth was optimistic, with 1,933 advancing stocks, 769 declining, and 137 unchanged. Notable gainers included MARUTI, M&M, LT, and BAJFINANCE, while HINDALCO, DRREDDY, ADANI PORTS, and ONGC lagged.
Technically, momentum indicators suggest a negative bias, with the Nifty trading below its short-term and long-term moving averages. However, the formation of a small white candle on the daily chart and a close above the previous day’s level indicates a mild positive sentiment. Immediate support levels are at 23,700, while resistance lies at 23,800. A sustained move above 23,800 could continue the pullback rally, and a close above 23,900 would confirm a stronger uptrend. Conversely, failure to break these resistance levels may result in consolidation or a continuation of the broader downtrend.
Intraday Levels: Support: 23,700, 23,600, 23,460 Resistance: 23,800, 23,900–24,000
Positional Trading Levels: Support: 23,300–22,750 Resistance: 23,900–24,500
BANK NIFTY TECHNICAL OUTLOOK
Bank Nifty closed at 51,060.60, recording a gain of 200.40 points, indicating a potential continuation of the positive trend if key levels are maintained. Despite the positive close, momentum indicators still reflect a negative bias, with the index trading below its short-term and medium-term moving averages. The formation of a white candle on the daily chart and a close above the previous day's level suggests a mild positive sentiment.
On the downside, the index has intraday support at 51,000, while the nearest resistance is at 51,300. Bank Nifty's ability to sustain above 51,000 will be crucial for maintaining the positive trend in the short term. A breakout above 51,300 could pave the way for further upside, while failure to surpass this level may lead to consolidation or a pullback. Positional traders should keep an eye on key support and resistance levels to navigate market movements effectively
Intraday traders should monitor support levels at 51,000, 50,600, and 50,300, with resistance levels at 51,300, 51,600, and 51,925.
For positional traders, short-term support lies between 50,600–49,600, with resistance in the range of 51,800–52,800.
