Nifty 50, Sensex today: What to expect from Indian stock market in trade on December 24

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a flare note Tuesday amid positive global market cues.

The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 23,762 level, a discount of 7 points from the Nifty futures’ previous close.

On Monday, the domestic equity market indices witnessed a short-covering rally, with the Nifty 50 closing above 23,700 level.

The Sensex gained 498.58 points, or 0.64%, to close at 78,540.17, while the Nifty 50 settled 165.95 points, or 0.7%, higher at 23,753.45.

Nifty 50 formed a small body of positive candle on the daily chart with minor upper and lower shadows.

“Technically, this formation indicates a doji or high wave type candle pattern. Having placed around the crucial supports of 200 day EMA (Exponential Moving Average) and a weekly uptrend line, the present upside bounce is likely to be a pull back rally of a down trend. The opening downside gap of 19th December is still intact after three sessions of its formation. This down gap could be considered as a bearish run- away gap, which is normally formed at the middle of a down trend. Hence, more weakness is likely from the highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the near-term trend of Nifty 50 remains weak and the present upside bounce could be a sell-on-rise opportunity for the short term. Immediate resistance to be watched around 23,900 – 24,000 levels.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

Nifty 50 showed a relief rally on December 23 and closed the day higher by 165 points.

“Nifty 50 index has formed a bullish Harami Cross pattern on the daily chart, indicating a potential rise in market optimism. Besides, the index closed above the 200-EMA. Going forward, a decisive move above 23,850 could trigger a smart recovery towards 24,000/24,400. On the downside, support is placed at 23,540; a breach below this level may lead to further weakness in the index,” said Rupak De, Senior Technical Analyst, LKP Securities.

VLA Ambala, Co-Founder of Stock Market Today, noted that the Nifty 50 traded within a range-bound manner by forming a doji candlestick pattern on the daily timeframe at the 200-day EMA, suggesting a bearish undertone.

“I would suggest traders adopt a sell-on-rise approach for trading purposes. Based on these, Nifty 50 is expected to gain support near the 23,510 and 23,400 levels, and meet resistance around 23,940 and 24,000 levels in the next session,” said VLA Ambala, Co-Founder of Stock Market Today.

Bank Nifty Prediction

Bank Nifty index ended 558.40 points, or 1.1%, higher at 51,317.60 on Monday, forming a bullish candlestick pattern on the daily chart.

“Bank Nifty remained consolidative in between 51,100 to 51,400 levels and ended with gains of around 560 points. It formed a small bullish candle on daily scale but still forming lower highs from the last five sessions as momentum is missing at higher zones. Now till it holds below 51,500 zones some weakness could be seen towards 51,000 then 50,600 levels while on the upside hurdle is seen at 51,500 then 51,650 zones,” said Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.