The Nifty 50 ended its two-day winning streak and closed moderately lower on December 15. The index faced a hurdle at the 20-day SMA (or the midline of the Bollinger Bands at 26,031), which also somewhat coincides with the falling resistance trendline. It failed to close above this level, though it finished the session above short-term moving averages. A sustainable close above the 20-day SMA is needed for a further upward journey toward the 26,100–26,200 zone. Until then, consolidation may continue, with immediate support at 25,900, followed by 25,750–25,700, according to experts.
The Nifty 50 opened lower at 25,930 and hit an intraday low of 25,905. In the morning session itself, the index showed a gradual recovery and climbed near the previous day’s closing level but could not sustain those small gains, ending above the psychological 26,000 mark at 26,027, down 20 points. It formed a bullish candle on the daily timeframe but could not close above the previous day’s high.
According to Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking, immediate support is placed around 25,900, followed by the 50-day DMA near 25,770. On the upside, a decisive move above 26,100 could pave the way for further gains toward 26,250, he said.
Overall, the broader trend remains positive, with a buy-on-dips approach intact as long as the index holds above 25,700, he believes.
The Stochastic RSI maintained a bullish crossover, while the RSI at 53.68 is very close to the reference line. The MACD remained below the reference line, but the histogram weakness faded further. All this indicates a gradual improvement in momentum.
The weekly options data indicated that the Nifty 50 is expected to remain in the 25,900–26,200 range in the short term.
The maximum Put open interest was seen at the 26,000 strike, followed by the 25,900 and 25,950 strikes. The maximum Put writing was observed at the 25,900, 25,950, and 26,000 strikes. Meanwhile, the 26,100 strike holds the maximum Call open interest, followed by the 26,200 and 26,000 strikes, with maximum Call writing at the 26,100, 26,200, and 26,050 strikes.
Bank Nifty
The banking index, Bank Nifty, outperformed the Nifty 50, rising 72 points to close at 59,462 and forming a bullish candle on the daily charts, indicating buying interest at lower levels.
The index sustained above all key moving averages as well as the midline of the Bollinger Bands. The Stochastic RSI remained positive, while the RSI rose to 59.18 but still stayed below the reference line. The MACD was also below the reference line, but the histogram weakness continued to fade. All this indicates improving momentum with underlying strength.
“On the downside, 58,800–58,900 will act as an immediate support zone for Bank Nifty. On the upside, 60,000–60,120 will act as a stiff resistance zone for the index,” said Hrishikesh Yedve, AVP – Technical and Derivative Research at Asit C Mehta Investment Intermediates.
Therefore, short-term traders are advised to buy near support levels and book profits near the resistance levels mentioned above, according to him.
Meanwhile, India VIX, the fear index, remained favourable for bulls, though it inched higher by 1.41 percent to 10.25 after a four-day correction.
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