Nifty 50 on 13 December
The Nifty 50, India’s benchmark index, saw volatile trading on 13 December as it retested its breakout level—the downward-sloping trendline connecting the highs of 6 November and 27 November. Following a subdued opening, the index tumbled sharply to an intraday low of 24,180 during the first half of the session.
However, a strong rebound led by FMCG, BFSI, and Bharti Airtel stocks helped the index recover all its losses, closing 220 points higher at 24,768. Despite the recovery, the advance-decline ratio painted a bearish picture, with two stocks declining for every gainer.
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On the weekly chart, the Nifty 50 formed a bullish candle with a lower shadow, signalling support near the 24,200 level.
The Nifty 50 index has crossed its key resistance at the 100-day moving average (100-DMA) and retraced 50% of its recent decline, signaling strength. The 14-period Relative Strength Index (RSI) is trending upward, currently around 60, reflecting improving momentum. Additionally, the Moving Average Convergence/Divergence (MACD) indicator has displayed a positive crossover and hovers near its central line, further supporting the bullish narrative.
For the index to extend its rally, it must sustain above 24,700, paving the way for an upward move toward the 25,000–25,200 range in the coming days. However, failure to hold above this critical level could lead to continued volatility, keeping the index range-bound between 24,700 and 24,200.
According to O’Neil’s methodology of market direction, the current market status is in a “Rally Attempt.” A Rally Attempt begins on the third day when the index closes higher off the most recent bottom after being in a Correction (also known as Downtrend).
How Nifty Bank performed
Nifty Bank gained 0.14% over the week, marking its fourth consecutive bullish candle on the weekly chart. On Friday, the sectoral index started on a subdued note and traded with a negative bias for the first two hours. However, buying interest at lower levels emerged after it hit an intraday low of 52,264.55, lifting the index into positive territory by the session’s end.
The index opened at 53,109.80 and traded within a range of 53,654.00 to 52,264.55 before closing 367 points higher at 53,583.80.
The momentum indicator, RSI, has risen upward and is currently placed around 63, along with a positive crossover on MACD. MACD is currently hovering around its central line.
The index is currently trading sideways with a positive bias, exhibiting volatility as it approaches a key resistance zone at 53,700–53,900. This level serves as a significant hurdle; surpassing it could pave the way for an advance toward 54,500 in the near term. Sustained trading above 54,500 may trigger strong momentum, potentially driving the index into uncharted territory, with a target of 57,000 in the coming weeks.
Under O’Neil’s methodology for market direction, the current status is classified as a “Confirmed Uptrend.” This phase typically begins with a follow-through day or when the index reclaims its previous uptrend high.
Two stocks to buy, recommended by MarketSmith India:
Manappuram Finance Ltd: Current market price ₹ 182 | Buy at ₹ 180–184 | Profit goal ₹ 199 | Stop loss ₹ 171 | Timeframe 1–2 Months
Also read | Interest rate cuts could be a catalyst for these five growth stocks
JNK India Ltd: Current market price ₹639 | Buy at ₹ 630–645 | Profit goal ₹750| Stop loss ₹ 588 | Timeframe 3–4 Months
