The Nifty 50 and Bank Nifty seem to be in a healthy consolidation phase following minor profit-booking after fresh record highs. As long as the Nifty 50 holds the 25,900 support, the possibility of the beginning of a new leg of up-move is high toward 26,500, while the immediate support is placed in the 26,100–26,000 zone. Meanwhile, the Bank Nifty is expected to consolidate with crucial support in the 58,800–58,700 zone, and the immediate support is at 59,500–59,400. Holding this crucial support can raise the chances of the banking index moving beyond 60,100 after the ongoing consolidation, experts said.
On December 1, the Nifty 50 declined 27 points to 26,176, while the Bank Nifty dropped 71 points to 59,681. The market breadth was dominated by bears. A total of 1,642 shares saw correction compared to 1,219 shares that advanced on the NSE.
Nifty Outlook and Strategy
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Over the past three sessions, the Nifty has been moving within a narrow range of 26,325–26,175. A negative divergence on the hourly scale suggests the possibility of a short-term cool-off toward 26,100, which aligns with the 10 DEMA. This level also coincides with the swing point of October 23, making it an important cushioning zone.
Meanwhile, the daily RSI remains comfortably above 50, indicating that underlying momentum stays positive and the broader trend remains intact. Given these technical factors, a recovery in Nifty appears likely over the coming sessions, provided the index holds above this key moving-average support.
Key Resistance: 26,300, 26,400
Key Support: 26,100, 26,000
Strategy: Buy Nifty Futures near 26,250, with a stop-loss of 26,100, targeting 26,600.
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Nifty has been inching higher after forming a low near 25,840 on November 26. On the weekly time frame, Nifty is attempting to close above the all-time high made on September 27, 2024. A close above the 26,277 level will further strengthen the medium- to short-term bullish trend.
On the downside, the key support for prices is placed near 26,030, which coincides with the prior swing high. From an Elliott Wave perspective, prices are possibly moving in the 3rd wave on the upside, which is typically the strongest and most extended wave within the Elliott Wave structure.
The outlook for Nifty remains positive. Continue to use declines as buying opportunities as long as 26,030 holds, for a move toward 26,400 and potentially beyond.
Key Resistance: 26,400
Key Support: 26,030
Strategy: Long positions can be created above 26,230 with a stop-loss of 26,150 and a target of 26,320 followed by 26,400.
Shitij Gandhi, AVP – Equity Technical Research at SMC Global Securities
Domestic equity indices retreated from record highs on Monday as profit-booking emerged amid weak global sentiment and a record-low rupee, weighing on risk appetite. However, the technical setup continues to signal healthy consolidation rather than a trend reversal, with Nifty holding firmly above key short-term moving averages.
Derivative positioning shows clear boundaries, as heavy Call open interest at 26,200 and 26,300 strikes limits the upside for now, while strong Put writing at 26,000 and 25,900 strikes reflects buyers defending declines. As long as Nifty sustains above 25,900, dips are likely to attract accumulation rather than panic selling.
Key Resistance: 26,400, 26,500
Key Support: 26,150, 26,100
Strategy: Buy Nifty Futures on dips near 26,150, with a stop-loss below 26,100, targeting 26,500.
Bank Nifty - Outlook and Positioning
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
In the last three sessions, Bank Nifty has been consolidating between 59,500 and 60,100. However, a negative divergence on the hourly chart indicates that the index may undergo a brief pullback toward 59,400, a zone that closely matches the 9 DEMA. This area also aligns with the swing high formed on November 20, adding to its significance as a support zone.
At the same time, the daily RSI is holding near 70, which shows that momentum remains strong and the overall trend is still positive. With these signals in place, Bank Nifty is likely to resume its upward move in the coming sessions, as long as it stays above this crucial moving-average support.
Key Resistance: 60,000, 60,100
Key Support: 59,400, 59,200
Strategy: Buy Bank Nifty Futures in the zone of 59,700–59,550, with a stop-loss of 59,000, targeting 60,500.
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
In the previous session, Bank Nifty registered a fresh record high at 60,114 levels. However, after hitting new highs, the index failed to sustain at higher levels and took some breather after posting a strong 1.50% gain in the prior week. Despite this minor halt, the daily chart still shows strength as prices managed to protect the prior day’s low on a closing basis, keeping the overall tone on the bullish side.
For now, a decisive break above 59,900 is essential for fresh upside momentum to resume, with targets of 60,114 followed by 60,350 levels. On the downside, a move below 59,500 can extend profit-booking, which will allow the daily RSI to cool off before the next potential upside leg unfolds.
Key Resistance: 60,200
Key Support: 59,500
Strategy: Long positions can be created above 59,900 with a stop-loss of 59,750 and a target of 60,050 followed by 60,200 levels.
Shitij Gandhi, AVP – Equity Technical Research at SMC Global Securities
Bank Nifty enters the new week poised in a phase of patient consolidation following its recent gain surge to record highs. Technically, the index remains comfortably in bullish territory, with the broader upward structure remaining intact. The options chain reveals a balanced battle between bulls and bears, suggesting that short-term declines may get absorbed.
Technically, as long as Bank Nifty holds above the support zone of 59,100–59,000, dips may offer buying opportunities. However, a decisive breakout above the 60,000 level could set the stage for a fresh rally toward 60,500 and 60,900 levels.
Key Resistance: 59,800, 60,000
Key Support: 59,400, 59,200
Strategy: Buy Bank Nifty Futures on dips near 59,500, with a stop-loss below 59,200, targeting 60,000.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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