NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Wednesday, December 4, 2024

The Nifty closed at 24,467.45, gaining 10.30 points (0.04%) in the previous session. A sustained bullish trend will depend on the index closing above the key short-term resistance level of 24,500.

During the session, the Nifty opened positively at 24,488.80 and hit an intraday high of 24,573.20 during morning trade. However, it later dipped to an intraday low of 24,366.30 before closing at 24,467.40. Sectoral performance was mixed, with gains in banks, realty, financial services, and media, while FMCG, auto, metal, and pharma sectors faced losses. Market breadth remained positive, with 1,613 stocks advancing, 1,073 declining, and 101 unchanged. The top gainers in the Nifty were HDFCLIFE, HDFCBANK, APOLLOHOSP, and NTPC, while the major losers were BHARTIARTL, CIPLA, BAJAJ-AUTO, and TATAMOTORS.

Technical Analysis

Momentum indicators continue to signal a positive trend, with the Nifty trading above its short-term moving averages. The index formed a small black candle on the daily chart but managed to close higher than the previous day’s level, suggesting that bullish momentum remains intact.

On the upside, the index faces short-term resistance at 24,500. A close above this level could confirm the continuation of the bullish trend in the coming days. If the index fails to break this resistance, a period of consolidation below this level may precede further gains.

The Nifty’s ability to sustain its bullish momentum depends on breaking and closing above the 24,500 resistance level. Traders should monitor this key level closely for confirmation of the uptrend. In the event of consolidation, the index is expected to find strong support at 24,370 and below.

Levels to Watch

Intraday Levels: Support: 24,370, 24,280, 24,200 Resistance: 24,475, 24,565-24,660 (15-Minute Charts)

Positional Trading: Support: 23,800–23,150 Resistance: 24,500–25,200

Bank Nifty Technical Outlook

In the previous session, Bank Nifty closed at 53,266.90, gaining 571.15 points. Technically, momentum indicators reflect a positive trend, with the index positioned above its short-term and long-term moving averages. Additionally, a white candle formed on the daily chart, closing higher than the previous session's candle, signaling the potential for the bullish trend to continue.

On the upside, the index faces short-term resistance at 53,500. A close above this level could pave the way for Bank Nifty to retest its all-time high of 54,467. The nearest intraday support is at 53,200, while resistance stands at 53,500.

With the current positive momentum and strong technical patterns, Bank Nifty is poised for further gains, provided it sustains above key resistance levels.

Intraday Levels: Support: 53,200, 53,000, 52,800 Resistance: 53,500, 53,750, 54,000

Positional Levels: Support: 52,500–51,700 Resistance: 53,500–54,400