NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Friday, December 27, 2024

The Nifty closed at 23,813.40, gaining 63.20 points or 0.27% in the preceding session. For the bullish trend to sustain, the index must move above the intraday resistance level of 23,865.

During the session, the Nifty opened with a positive bias at 23,801.40 and touched the intraday high of 23,938.80 during the morning trade. However, the index gradually declined, hitting an intraday low of 23,800.60, before closing at 23,813.40.

Sectorally, Pharma, Auto, Private Banks, and Media outperformed, while Metal, PSU Banks, and Realty lagged. Market breadth was negative, with 1,285 stocks advancing, 1,374 stocks declining, and 177 stocks unchanged. Key gainers under the nifty included DRREDDY, M&M, INDUSINDBK, and EICHERMOT, whereas HINDALCO, COALINDIA, SBIN, and ONGC were among the top losers.

Technically, the momentum indicators point to a negative bias, with the index staying below both its short-term and long-term moving averages. A Doji candle on the daily chart reflects market indecision, suggesting the possibility of continued consolidation. The index faces immediate short-term resistance at 23,900, with a positive trend likely if the Nifty sustains above this level. Otherwise, the ongoing consolidation phase may persist. On the downside, the nearest intraday support is at 23,770.

Key Levels:

Intraday Support: 23,770, 23,650, 23,535 Intraday Resistance: 23,865, 23,965–24,060 (15-Minute Charts)

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

Bank Nifty Technical Outlook

In the previous session, Bank Nifty closed at 51,311.30, gaining 140.60 points. Despite the uptick, momentum indicators continue to suggest a negative trend, with the index trading below its short-term and medium-term moving averages. The formation of a Doji candle on the daily chart, coupled with a close just above the prior session's close, reflects market indecision and the potential for consolidation. On the downside, intraday support lies at 51,250, while resistance is seen at 51,600.

The near-term outlook for Bank Nifty suggests consolidation, with a breakout above 51,600 potentially signaling a continuation of the upward trend. However, failure to sustain above 51,250 could lead to further downside pressure. Traders are advised to adopt a disciplined approach, aligning their strategies with the defined support and resistance levels.

For intraday traders, the key support levels are 51,250, 50,950, and 50,675, whereas resistance levels are 51,600, 51,900, and 52,100.

 Positional traders should monitor the broader support range of 50,600–49,600 and resistance at 51,800–52,800.