As the Indian stock market gears up for trading on December 23, 2024, investors are keenly watching the trends in the Nifty 50 and Sensex indices. Following a tumultuous week that saw significant declines, market analysts predict a potential gap-up opening today.
Market Overview and Global Cues
The GIFT Nifty is indicating a positive start for the Indian markets, trading around 23,795, which reflects a premium of nearly 170 points over the previous close of Nifty futures. This surge is supported by gains in global markets and lower-than-expected inflation readings from the US, which have contributed to a more favorable outlook for equities.On Friday, December 20, both the Nifty 50 and Sensex indices closed sharply lower, with the Nifty 50 plummeting 1.52% to settle at 23,587.50 points. The Sensex also faced a significant decline of 1.49%, closing at 78,041.59 points.
Technical Analysis: Key Levels to Watch
According to Om Mehra, Technical Analyst at SAMCO Securities, the Nifty 50 has slipped below its 200-day Exponential Moving Average (EMA) of 23,800, indicating further weakness in the medium term. The next critical support level lies at 23,263, which must hold to prevent deeper corrections.
Current Support and Resistance Levels:
- Support: 23,350
- Resistance: 23,800
Mehra also noted that if the Nifty fails to reclaim the 24,200 mark, it may struggle to recover from its recent losses. The overall sentiment remains bearish, and traders are advised to adopt a “sell-on-rise” strategy as volatility is expected to persist.
Nifty OI Data Insights
The open interest (OI) data reveals that the 24,000-strike call has accumulated the highest OI at 93.22 lakh contracts, marking it as a significant resistance level. Conversely, the 23,000-strike put has garnered 82.65 lakh contracts, indicating vital support.The put-call ratio (PCR) has increased to 0.71, reflecting a bearish undertone in market sentiment. The ‘max pain’ level stands at 24,000, suggesting limited downside risks in the short term.
Bank Nifty Outlook
The Bank Nifty index also faced challenges last week, dropping by over 5% and closing at 50,759.20 points on Friday. Key supports are positioned at 50,200 and 49,800, while resistance levels lie between 51,000 and 51,200.Puneet Singhania from Master Trust Group emphasized that traders should remain cautious and monitor key support and resistance levels closely amid heightened volatility.
Conclusion
As investors prepare for trading on December 23, 2024, they should remain vigilant about market movements and technical indicators. With potential gains indicated by GIFT Nifty and critical support levels in play, today’s trading session could be pivotal for both Nifty 50 and Bank Nifty indices.
Disclaimer
This article is based on current market conditions and analysis available as of December 23, 2024. Market conditions can change rapidly; therefore, investors should conduct their own research or consult with financial advisors before making investment decisions.
