Nifty 50, Sensex today: What to expect from Indian stock market in trade on December 16

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday following weak global market cues.

The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 24,775 level, a discount of nearly 50 points from the Nifty futures’ previous close.

On Friday, the domestic equity market indices ended a percent higher amid high volatility.

The Sensex rallied 843.16 points, or 1.04%, to close at 82,133.12, while the Nifty 50 settled 219.60 points, or 0.89%, higher at 24,768.30.

Nifty 50 formed a long bull candle on the daily chart with a long lower shadow.

“Technically, this pattern indicates a formation of a hefty bullish engulfing pattern that has engulfed the smaller range movements of the last five sessions on the upside. This is a positive indication and signal bulls are back in the market with big-bang action,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the swing low of Friday seems to have confirmed the formation of new higher bottom of bullish chart pattern like higher tops and bottoms.

“Friday’s market action has not only shown a false downside breakout of the recent range movement, but also placed at the verge of witnessing a decisive upside breakout in the short term. The market action of Friday is signaling a strong comeback of bulls after a choppy movement and we expect more upside in the near term. The next upside targets to be watched are around 25,200 levels by next week. Immediate support is placed at 24,650,” said Shetti.

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

Nifty 50 Prediction

Nifty 50 witnessed an excellent upmove from the intraday lows on December 13 and closed the day higher by 219 points.

“Nifty 50 has claimed a bullish stance after breaking the horizontal resistance of 24,700 with closing above it for the first time. The strong support is at 24,100 and 24,300, making it a key level for traders. Buying is favorable at around 24,300 – 24,400 with a stop loss at 24,100. On the upside, the index may aim to reclaim the psychological 25,000 level. However, if it breaches 24,100, further downside toward 23,900 is possible,” said Puneet Singhania, Director at Master Trust Group.

He believes the current trend indicates optimism, with opportunities for buying on dips and clear risk levels for managing trades effectively.

VLA Ambala, Co-Founder of Stock Market Today noted that currently, the Nifty’s P/E ratio stands at 22.68, which indicates that it may be trading at a higher valuation to earnings. Meanwhile, the P/B ratio is 3.67, indicating that the market’s valuation is relative to its book value.

“During Friday’s session, the market witnessed strong buying activity. In addition to this, Nifty traded between 24,180 and 24,760, closing above 24,180.80 before recovering sharply and staying above 24,750, with a V-shaped recovery. This trend indicates that Nifty may test all-time highs. According to the market analysis, this could be a good time for investors to focus on high-quality stocks that can outperform the index. Amid these developments, Nifty can hover for support near 24,750 and 24,700 and meet resistance near 25,000 and 25,130,” Ambala said.

Bank Nifty Prediction

Bank Nifty index ended 367.35 points, or 0.69%, lower at 53,583.80 on Friday, forming a bullish candlestick pattern on the daily timeframe.

“Bank Nifty has established a strong base around the 52,800 – 53,000 range, followed by a breakout from consolidation, closing the week robustly above the 21-week and daily EMAs (Exponential Moving Average). This signals a bullish undertone, with the market favoring buy-on-dips as long as it trades above 52,700. The immediate upside target is set at 54,200, which aligns with the ongoing positive momentum,” said Puneet Singhania.

However, according to him, a breach below 52,700 could trigger a correction toward the 52,000, and the overall trend appears sideways to bullish in the short term.

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.