Nifty Technical Outlook

Based on Market Closing on Thursday, December 26, 2024

The Nifty ended the previous session at 23,750.20, gaining 22.55 points or 0.10%. For a sustained positive trend, the index must breach the intraday resistance at 23,865.

During the session, the Nifty opened with a positive bias at 23,769.10 and climbed to an intraday high of 23,854.50 in the morning trade. However, it gradually declined to hit the intraday low of 23,653.60 before closing at 23,750.20. Sector-wise, the biggest gainers were auto, pharma, PSU banks, and realty, while the laggards included media, FMCG, private banks, and metals. Market breadth was negative, with 1,018 stocks advancing, 1,647 declining, and 164 remaining unchanged. The top gainers in the Nifty were Adani Ports, M&M, SBILIFE, and Shriram Finance, while Asian Paints, Titan, JSW Steel, and Grasim were the major losers.

From a technical perspective, momentum indicators suggest a negative bias, with the Nifty remaining below its short-term and long-term moving averages. The index formed a small black candle on the daily chart but managed to close slightly higher than the previous session. This pattern indicates the potential for consolidation. 

The Nifty continues to consolidate within the narrow range of 23,650–23,865, reflecting market indecision. A breakout above 23,865 could signal a positive trend, with potential targets at higher resistance levels, while a breakdown below 23,650 may indicate further downside pressure. Traders should remain cautious and wait for a decisive move beyond this range to confirm the market's direction. Maintaining a disciplined approach with clear entry and exit levels is crucial in the current consolidative phase.

Key Levels  Intraday Support: 23,650, 23,530, 23,400 Intraday Resistance: 23,865, 23,965–24,060 (15-minute charts)

Positional Trading Levels Short-term Support: 23,300–22,750 Resistance: 23,900–24,500

Bank Nifty Technical Outlook

In the previous session, Bank Nifty closed at 51,170.70, registering a loss of 62.30 points (-0.12%). Technical indicators continue to reflect a negative trend, as the index remains below its short-term and medium-term moving averages. Additionally, the formation of a black candle on the daily chart and a close below the prior day's level indicates a bearish bias.

Bank Nifty continues to exhibit a negative bias, as reflected by its position below key moving averages and the formation of bearish candlestick patterns. A break below the 51,000 support level could intensify selling pressure, pushing the index lower toward the next support zone. However, a sustained move above 51,400 might provide some relief in the form of a pullback rally. Traders are advised to remain cautious and align their strategies with the prevailing market trend while keeping an eye on key levels for potential entry and exit opportunities.

Key Levels for Intraday Traders: Support: 51,000, 50,700, 50,400 Resistance: 51,400, 51,700, 52,000

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