Nifty 50, Sensex today: What to expect from Indian stock market in trade on December 19

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday tracking a sharp fall in global markets after the US Federal Reserve policy.

The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 23,936 level, a discount of nearly 320 points from the Nifty futures’ previous close.

The US Fed cut interest rates by 25 basis points to the 4.25% – 4.50% range, but indicated a slower pace of rate cuts next year.

On Wednesday, the domestic equity market indices ended over half a percent lower, with the Nifty 50 closing below 24,200 level.

The Sensex plunged 502.25 points, or 0.62%, to close at 80,182.20, while the Nifty 50 settled 137.15 points, or 0.56%, lower at 24,198.85.

Nifty 50 formed a reasonable negative candle on the daily chart with upper shadow, which is indicating a sharp reversal in the market after the upside bounce.

“The last three sessions’ weakness has changed the sentiment of the market to the downside and the bullish chart pattern like higher tops and bottoms is on the verge of negation. This is not a good sign. The short-term trend of Nifty 50 seems to have reversed down,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the next lower supports to be watched around 24,000 – 23,900 (opening upside gap of 25th November) in the short term, while immediate resistance is placed at 24,350 – 24,400 levels.

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

Nifty 50 Prediction

Nifty 50 continued the sharp downside momentum for the third consecutive session on December 18 and closed the day lower by 137 points.

“Nifty 50 traded below its 20 EMA (Exponential Moving Average), suggesting a weakness in the index. The index tested its crucial support at the 24,200 level and held the support in yesterday’s fall however, the support looks weak for now. The index will likely move towards its next support at the 23,800 level as soon as the support at 24,200 is broken. The RSI on the weekly chart shows a break in momentum, indicating weakness in the index to continue,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.

Options writer’s data for the monthly expiry showed increased writing of the calls at the 24,200 and above levels, suggesting weakness in the index, he added.

VLA Ambala, Co-Founder of Stock Market Today, highlighted that the Nifty 50 is currently trading near 24,200 points, showing a positive price deviation of 7% above the 20-month EMA (Exponential Moving Average).

“With an RSI of 69 on the monthly chart, market participants can expect more dips representing a strategic buying opportunity. The immediate support level for Nifty is 23,990 which is the fundamental level, if breached, this could trigger a price movement of 5% to 7% over the next 30 days. Meanwhile, during Wednesday’s session, Nifty formed a bearish pattern on the daily chart and ended on a negative note, continuing the latest price trend,” said Ambala.

According to her, Nifty 50 can expect support around 24,200 and 24,000, while resistance near 24,305 and 24,430.

Bank Nifty Prediction

Bank Nifty index declined 695.25 points, or 1.32%, to close at 52,139.55 on Wednesday, and formed a long bearish candlestick pattern on the daily timeframe.

“Bank Nifty closed below the 20 EMA at the 52,800 level near its crucial support at the 52,200 level. The RSI on the weekly chart shows a break in momentum, indicating weakness in the index to continue. The index is walking on the lower band of the lower Keltner channel, indicating the potential for a further fall,” said Dr. Praveen Dwarakanath.

According to him, options writer’s data for the monthly expiry showed increased writing of the calls at the 52,200 and higher levels, suggesting weakness in the index.

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.