As the Indian stock market opens on December 16, 2024, investors are bracing for a cautious start following mixed global cues. The trends on GIFT Nifty indicate a weak opening for the benchmark indices, with GIFT Nifty trading around the 24,775 level, reflecting a discount of nearly 50 points from the previous close of Nifty futures.
Market Recap: Previous Trading Session
In the last trading session on December 13, both the Sensex and Nifty 50 showcased impressive recoveries amid high volatility:
- Sensex: Closed at 82,133.12, gaining 843.16 points (1.04%).
- Nifty 50: Ended at 24,768.30, up by 219.60 points (0.89%).
The Nifty 50 formed a long bullish candle on its daily chart, indicating a potential shift in market sentiment towards bullishness.
Technical Analysis: Nifty 50 Outlook
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the formation of a bullish engulfing pattern signals that bulls are re-entering the market after a period of consolidation. The swing low established on Friday confirms a new higher bottom in the bullish chart pattern.
- Immediate Support: 24,650
- Next Upside Target: 25,200
Shetti emphasizes that Friday’s market action suggests a strong comeback for bulls, with expectations of further upside in the near term.
Predictions for Nifty 50 and Bank Nifty Today
Nifty 50 Prediction
- The Nifty has shown resilience after breaking the horizontal resistance at 24,700, closing above it for the first time.
- Traders are advised to consider buying opportunities around 24,300 – 24,400, with a stop loss set at 24,100.
- If the index breaches 24,100, it may face further downside toward 23,900.
Puneet Singhania from Master Trust Group notes that optimism is prevalent in the market, suggesting that buying on dips could yield favorable outcomes.
Bank Nifty Prediction
The Bank Nifty index closed at 53,583.80, down by 367.35 points (0.69%) in the previous session but formed a bullish candlestick pattern:
- A strong base has been established around the 52,800 – 53,000 range.
- Immediate resistance is anticipated around 54,200, while support levels are noted at 52,700.
- Singhania indicates that as long as Bank Nifty trades above this support level, it is likely to favor buy-on-dips strategies.
Global Market Influence
The Indian markets are likely to be influenced by mixed signals from global markets as investors await key economic data releases and policy decisions from the US Federal Reserve later this week. The cautious sentiment is reflected in early trading indicators.
Key Economic Data to Watch
Investors should also keep an eye on important economic indicators being released today:
- HSBC India Composite PMI
- November Wholesale Price Index
- Balance of Trade data
These indicators will provide insights into economic health and could influence market movements throughout the day.
Conclusion
As we head into today’s trading session, both Nifty and Sensex are expected to open lower amidst global uncertainties. However, technical indicators suggest potential upward momentum if key resistance levels are breached. Traders should remain vigilant and consider strategic buying opportunities while managing risk effectively.
Disclaimer
Investing in stocks involves risks, and it is essential to conduct thorough research or consult with a financial advisor before making any investment decisions. The recommendations provided here are based on expert analysis and current market conditions but do not guarantee profits.
