NIFTY Technical Outlook

Based on Market Closing on Monday, December 23, 2024

The Nifty closed at 23,753.45 in the previous session, gaining 165.95 points or 0.70%. The positive momentum may persist if the index remains above the intraday support level of 23,650.

The session began with a positive opening at 23,738.20, reaching an intraday high of 23,869.60 during the morning trade. However, the index later declined to an intraday low of 23,647.20 before closing at 23,753.45. Most sectors, except media and auto, ended with a positive bias. Notable sectoral gainers included realty, banking, FMCG, and metals. The market breadth, however, remained negative, with 998 stocks advancing, 1,730 declining, and 101 remaining unchanged. Among the top Nifty gainers were JSW Steel, ITC, Hindalco, and Trent, while major losers included Hero MotoCorp, Maruti, HCL Tech, and HDFC Life.

Technically, momentum indicators continue to reflect a negative bias, with the Nifty trading below its short-term and medium-term moving averages. The formation of a Doji candle on the daily chart, closing within the previous day's range, signals the possibility of consolidation. On the downside, intraday support is seen at 23,650, while the resistance  at 23,825.

The Nifty's positive close in the previous session, despite negative market breadth, suggests cautious optimism. While momentum indicators continue to show a negative bias, the formation of a Doji candle hints at potential consolidation. Sustaining above the critical support level of 23,650 could pave the way for further gains, with immediate resistance at 23,825. However, a breach below this support might renew bearish momentum, emphasizing the importance of closely monitoring these levels for trading strategies

Intraday Levels: Support: 23,650, 23,530, 23,400 Resistance: 23,825, 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 51,317.60, gaining 558.40 points. Despite this positive move, momentum indicators continue to reflect a negative trend, with the index remaining below its short-term and medium-term moving averages. However, the formation of a white candle on the daily chart and a close above the critical resistance level of 51,000 signal a mildly positive bias.

On the upside, the index faces immediate intraday resistance at 51,500. On the downside, the nearest intraday support is at 51,100. The Bank Nifty's recent close above the 51,000 resistance level provides a glimmer of positivity amidst a broader negative trend indicated by momentum indicators. While the formation of a white candle hints at potential upward movement, the index must sustain above 51,500 to confirm a continued positive trajectory. Traders should remain cautious, keeping a close eye on support at 51,100 and resistance at 51,500, as any breach of these levels could dictate the near-term market direction.

For intraday traders, key support levels are 51,100, 50,800, and 50,500, while resistance levels are 51,500, 51,800, and 52,150.

 Positional traders should monitor short-term support between 51,000 and 50,000, with resistance in the range of 52,000 to 53,000.