Nifty Trading Strategy

After a rally in the previous three consecutive sessions, the Nifty 50 witnessed consolidation on December 5, ending flat with a positive bias. As long as the index holds above the 24,350 zone, the upward trend, barring intermittent consolidation, remains intact, with the first target at 24,550, followed by the key target zone of 24,700-24,800. However, if it falls below 24,350, the level to watch as support is 24,200, experts said. The Bank Nifty needs to defend the 53,000 level for a move towards 53,800. If it falls below 53,000, it may consolidate, with support at 52,600.

On Wednesday, December 4, the Nifty 50 advanced 10 points to 24,467, while the Bank Nifty surged 571 points, or 1.08 percent, to reach 53,267, with market breadth favoring the bulls. About 1,495 shares gained, compared to 995 shares that declined on the NSE.

Nifty Outlook and Strategy

Jatin Gedia, Research Analyst at Mirae Asset Sharekhan

On the daily charts, we can observe that after rising for three consecutive trading sessions, the Nifty consolidated. The hourly momentum indicator has triggered a negative crossover, which is a sell signal, and hence, consolidation is likely. Dips towards 24,400-24,360 should be considered as a buying opportunity. On the upside, 24,570-24,600 can act as immediate resistance. However, the overall uptrend is still intact, and we expect an upmove toward 24,770.

Key Resistance: 24,650, 24,700

Key Support: 24,400, 24,360

Strategy: Buy Nifty Futures on dips towards the support at 24,400, with a stop-loss at 24,300, targeting 24,600.

Vidnyan S Sawant, Head of Research at GEPL Capital

The Nifty has demonstrated a robust recovery in recent weeks, rebounding sharply from its recent low of 23,260, and is currently trading near a five-week high. On the daily charts, the index has formed an Inverted Head and Shoulders pattern and confirmed a breakout with a gap-up, signaling strengthening bullish momentum. Furthermore, its position above the 20-day EMA (Exponential Moving Average) underscores a positive market undertone. Key resistance is pegged at 24,600, and a decisive breakout above this level could shift the trend from neutral to positive, with the potential to drive the index towards 25,200. On the downside, immediate support is placed at 23,900. A breach of this level could lead to a retest of the recent low near 23,300.

Key Resistance: 24,600, 25,200

Key Support: 23,900, 23,300

Strategy: Buy Nifty Futures above 24,600, with a stop-loss at 24,300, targeting 25,200.

Shitij Gandhi, Senior Research Analyst (Technicals) at SMC Global Securities

The Nifty is facing a hurdle at 24,500, above which we can expect further upside to the 24,700 level. The overall trend is expected to remain in favor of the bulls for now, and any dip in prices due to a technical pullback should be used to create fresh longs.

Key Resistance: 24,700, 24,800

Key Support: 24,400, 24,300

Strategy: Buy on dips near 24,450, with a stop-loss below 24,300, targeting 24,700.

Bank Nifty - Outlook and Positioning

Jatin Gedia, Research Analyst at Mirae Asset Sharekhan

The Bank Nifty witnessed a continuation of positive price action and is heading towards 53,500. In terms of levels, the support zone is between 52,900 and 52,800, while the immediate hurdle zone lies between 53,460 and 53,500. Overall, the uptrend remains intact, and any minor pullbacks should be considered buying opportunities.

Key Resistance: 53,500, 54,000

Key Support: 53,100, 52,900

Strategy: Buy Bank Nifty Futures with a stop-loss at 53,000, targeting 54,000.

Vidnyan S Sawant, Head of Research at GEPL Capital

Bank Nifty is breaking out of a consolidation range between 49,600 and 52,600 this week. A sustained close above the 52,600 level would signal a trend reversal from neutral to positive. On the daily charts, the index is firmly holding above its 20-day EMA, reflecting a bullish undertone. The next resistance is anticipated in the 53,800–54,460 range, while support lies within the 52,600–51,400 zone. As long as Bank Nifty remains above the 52,600 mark, the sentiment is expected to stay bullish.

Key Resistance: 53,800, 54,460

Key Support: 52,600, 51,400

Strategy: Buy Bank Nifty Futures at the current market price, with a stop-loss at 52,600, targeting 53,800.

Shitij Gandhi, Senior Research Analyst (Technicals) at SMC Global Securities

Bank Nifty’s rally was driven by robust performances from key banking stocks. This optimism was largely fueled by expectations that the Reserve Bank of India (RBI) may announce measures to improve liquidity during its upcoming monetary policy review on December 6. Technically, the Bank Nifty index likely saw support from key moving averages, with any bullish momentum driven by strong buying interest in large-cap banking stocks. If this positive momentum continues, the Bank Nifty could potentially test the 53,500 level and maintain its upward trajectory.

Key Resistance: 53,500, 53,800

Key Support: 53,000, 52,700

Strategy: Buy Bank Nifty Futures on dips near 53,000, with a stop-loss below 52,700, targeting 53,500.