NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Thursday, December 12, 2024
The Nifty closed at 24,548.70 in the preceding session, declining by 91.10 points (-0.38%). A continuation of the downtrend appears likely if the index moves below the critical support level of 24,500.
During the session, the Nifty opened negatively at 24,604.40 and reached an intraday high of 24,675.30. However, the momentum failed to sustain, leading the index to gradually decline and hit an intraday low of 24,527.90, before finally closing at 24,548.70.
The sector-wise performance revealed a negative bias across the board, except for IT and metal, which closed positively. Media, FMCG, auto, and PSU banks were the biggest laggards. Market breadth was weak, with 856 stocks advancing, 1,791 declining, and 145 remaining unchanged. The top gainers in the Nifty were ADANIENT, BHARTIARTL, INDUSINDBK, and TECHM, while NTPC, HINDUNILVR, COALINDIA, and HEROMOTOCO emerged as the top losers.
From a technical perspective, momentum indicators continue to signal a positive trend, with the Nifty holding 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 day's level, indicates mild selling pressure. Over the past few trading sessions, the index has been consolidating above the 24,500 support level. A breach of this level could extend the downtrend, potentially targeting 24,300 or lower. Conversely, sustained buying near this zone may trigger a pullback rally, with the nearest resistance at 24,600.
For intraday traders, key support levels to watch are 24,500, 24,400, and 24,300, while resistance levels are at 24,600, 24,800, and 25,000.
Positional traders should monitor support at 24,500–23,800 and resistance at 25,000–25,500. In conclusion, the Nifty is in a crucial support zone. A move above 24,600 could spark a recovery, while a sustained break below 24,500 may accelerate bearish momentum.
Bank Nifty Technical Outlook
In the preceding session, Bank Nifty closed at 53,216.45, recording a loss of 174.90 points. Momentum indicators suggest a positive trend, as the index remains above its short-term and long-term moving averages. However, the formation of a Doji candle on the daily chart, along with a close below the previous day's level, indicates a negative bias for the index.
On the downside, Bank Nifty has immediate intraday support at 53,100. A move below this level could extend the downtrend in today's session. Conversely, the nearest intraday resistance is at 53,300, and a break above this level is essential to trigger a bounce-back.
As per the 15-minute charts, intraday traders should focus on support levels at 53,100, 52,900, and 52,700, while resistance levels are at 53,300, 53,500, and 53,700. For positional traders, key short-term support lies between 52,750–51,750, with resistance at 53,850–54,500.
In summary, Bank Nifty faces a crucial test of support at 53,100. While the broader trend remains positive, a sustained break below this level may confirm further downside. On the other hand, surpassing the 53,300 resistance could signal recovery and strengthen the index’s bullish momentum. Traders should adopt a strategic approach, keeping a close eye on these critical levels.
