Nifty Trading Plan

The Nifty 50 saw consolidation on December 16 after a nearly 1% rally in the previous session. It closed moderately lower due to profit booking, but considering the technical indicators, the overall trend remains in favor of the bulls. As long as the index defends the 24,500 level on a closing basis, there is a high possibility of it marching towards 25,000, provided it decisively clears the 24,700-24,750 hurdles, according to experts. For the Bank Nifty, the 53,300-53,200 zone is expected to act as a support, while 53,800-54,000 is likely to be a hurdle on the higher side.

On Monday, December 16, the Nifty 50 fell by 100 points to close at 24,668, while the Bank Nifty was down by 2.5 points, closing at 53,581, despite a positive market breadth. About 1,359 shares advanced against 1,196 declining shares on the NSE.

Nifty Outlook and Strategy

Anshul Jain, Head of Research at Lakshmishree Investments

The Nifty index has been showing intriguing patterns on the daily chart, indicating a potential breakout. Over the past week, the Nifty has formed five inside bars, culminating in a failed low during Friday's session, followed by another inside bar. This pattern often suggests that the market is coiling, and a significant move is imminent.

A breakout above the 24,760 mark would be a strong signal, likely propelling the index to test the 25,200 level in the near term. Such a move would reflect a shift in market sentiment and a new phase of bullish momentum.

Adding to this optimistic outlook, the 8-day and 21-day exponential moving averages (EMA) have experienced a positive crossover. This technical setup is generally viewed as a bullish signal, suggesting that the recent pullback was merely a retest of the moving average spread. With indicators resetting, the market appears primed for a rally.

Investors should keep a close eye on the 24,760 level. A decisive move above this point could herald a robust upward trend, providing lucrative opportunities for traders. The convergence of these technical indicators suggests that the Nifty is on the verge of a significant breakout, setting the stage for an exciting period ahead in the market.

Key Resistance: 24,640, 24,560

Key Support: 24,760, 24,850, 25,,200

Strategy: For Nifty, dips towards 24,600 present a strong buy opportunity. Investors should consider adding to their long positions on a breakout above 24,780, targeting a rise to 25,200. This strategy leverages support levels and potential bullish momentum.

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi

Over the past 2-3 trading sessions, the Nifty has largely traded within the R3-R4 camarilla pivot range, indicating consolidation in the 24,500-24,800 zone. This suggests that this range could persist in the coming sessions until a decisive breakout occurs. The hourly and daily RSI (Relative Strength Index) remaining above 50 highlights sustained positive momentum, reinforcing strong support near the 24,500 level. On the upside, resistance is anticipated around 25,000, making this range a critical zone for near-term market movements.

Key Resistance: 24,800, 25,000

Key Support: 24,350, 24,500

Strategy: Buy Nifty Futures near 24,680, with a stop-loss of 24,470, targeting 25,000.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart

For the Nifty 50, 24,800-24,850 is an immediate supply zone, followed by 25,000-25,200 as the next resistance area. On the downside, 24,690 and 24,580 are immediate support levels, with 24,400 as the next key support.

Key Resistance: 24,850, 25,000, 25,200

Key Support: 24,690, 24,580, 24,400

Strategy: Buy Nifty Futures on dips to around 24,580, with a stop-loss of 24,400, targeting 24,800 and 25,000.

Bank Nifty - Outlook and Positioning

Anshul Jain, Head of Research at Lakshmishree Investments

The Bank Nifty is exhibiting a compelling technical setup, signaling a potential bullish breakout. Over the past week, the index has formed five inside bars, accompanied by a failed low on Friday and a narrow bar on Monday. This pattern often precedes a significant move, suggesting that the index is coiling and ready to surge.

A breakout above the crucial 53,888-53,900 zone would be a strong bullish indicator, likely driving the index to a fresh all-time high with an immediate target of 55,500. This potential upward movement is underscored by rising volumes on up candles and declining volumes on down candles—a classic sign of bullish accumulation.

Moreover, the moving averages and Relative Strength Index (RSI) have recently experienced their first bullish test, further indicating a shift toward bullish momentum. Traders should monitor the 53,900 level closely, as a decisive move above this resistance could trigger a robust rally. With technical indicators aligning and bullish accumulation evident, the Bank Nifty appears poised for a significant breakout, setting the stage for exciting opportunities in the market.

Key Resistance: 53,400, 53,150

Key Support: 53,900, 54,500

Strategy: For Bank Nifty, dips towards 53,400-53,200 offer a favorable entry point for long positions. Additionally, a breakout above 53,900 can signal further buying opportunities, aiming for a target range of 54,500-55,500. This approach capitalizes on key support zones and breakout signals to optimize gains in both indices.

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi

Over the past 2-3 trading sessions, Bank Nifty has remained largely confined within the R3-R4 camarilla pivot range, indicating potential consolidation between 52,800 and 53,800 in the near term, ahead of any decisive breakout. The hourly and daily RSI holding above 50 reflects positive momentum, pointing to solid support around 53,300. Meanwhile, resistance is likely near 54,000, making this range a key zone for determining the short-term market direction.

Key Resistance: 53,800, 54,000

Key Support: 53,000, 52,800

Strategy: Buy Bank Nifty Futures near 53,400, with a stop-loss of 53,000, targeting 54,200.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart

For the Bank Nifty, 53,750-54,000 will act as an immediate resistance area. A move above 54,000 could lead to a new high around the 54,500 level. On the downside, 53,300 and 53,000 are immediate support levels.

Key Resistance: 54,000, 54,500

Key Support: 53,300, 53,000, 52,800

Strategy: Buy Nifty Futures on dips around 53,300, with a stop-loss of 52,800, targeting 54,000 and 54,500.