As the Indian stock market braces for another trading day, Nifty 50 and Sensex are expected to open lower on December 19, 2024. This comes in the wake of a significant sell-off in global markets following the US Federal Reserve’s recent policy announcements.
Market Sentiment and Global Influences
The US Federal Reserve cut interest rates by 25 basis points, bringing the target range to 4.25% – 4.50%. However, the Fed’s indication of a slower pace of rate cuts next year has raised concerns among investors, contributing to a sharp decline in global markets. As a result, the Indian benchmark indices are likely to feel the impact.The trends on GIFT Nifty suggest a gap-down start for the Indian market, with GIFT Nifty trading around 23,936, indicating a discount of nearly 320 points from the previous close of Nifty futures.
Recent Performance of Nifty 50 and Sensex
On December 18, the Indian stock market witnessed a downturn, with the Nifty 50 closing at 24,198.85, down 137.15 points or 0.56%. Similarly, the BSE Sensex fell by 502.25 points, or 0.62%, ending at 80,182.20. The negative sentiment was reflected in the formation of a bearish candle on the daily chart for Nifty 50, indicating potential further declines.
Technical Analysis: Support and Resistance Levels
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the recent weakness in the Nifty has shifted market sentiment to a bearish outlook. The index is currently facing crucial support around 24,000 – 23,900, while immediate resistance is noted at 24,350 – 24,400 levels.Dr. Praveen Dwarakanath from Hedged.in suggests that if Nifty breaks below the support level of 24,200, it could quickly move toward its next support at 23,800. The Relative Strength Index (RSI) indicates weakening momentum, further supporting a cautious approach for traders.
Bank Nifty Outlook
The Bank Nifty index also experienced declines, closing at 52,139.55, down by 695.25 points or 1.32% on Wednesday. The index is currently trading below its crucial support level at 52,200, with potential further weakness indicated by recent candlestick patterns.
Conclusion
As traders prepare for today’s session, they should remain vigilant about key support and resistance levels for both Nifty and Bank Nifty. With global cues suggesting continued pressure on Indian markets, a cautious approach is advisable.
Disclaimer
The views and recommendations provided in this analysis are those of individual analysts or broking companies and do not reflect the views of Mint or its management. Investors should conduct their own research or consult with certified financial advisors before making any investment decisions based on this information. The stock market carries inherent risks, and past performance is not indicative of future results.
