Nifty 50 on 2 December
The Nifty 50, India’s benchmark stock market index, gained approximately 224 points over the past week, forming a bullish candle with a higher-high and higher-low price structure on the weekly timeframe chart. This performance came amid a volatile trading week.
On Monday, 2 December, the index opened on a subdued note and traded sideways within the 24,000–24,180 range. Despite weak Q2 FY25 GDP data, the index gained about 145 points during the session and formed a bullish candle on the daily chart.
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In today’s session, strong buying interest in realty, metal, and auto stocks propelled the market higher in the latter half of the day. This momentum helped the Nifty 50 form a bullish candle with a higher-high price structure, closing near the session’s high at 24,276.05. The advance-decline ratio was favourable, settling at approximately 2:1.
Technically, the index has remained within the 23,850–24,400 range over the past six trading sessions. The 14-period Relative Strength Index (RSI) is showing a slight upward trend, currently positioned at 52. Meanwhile, the Moving Average Convergence/Divergence (MACD) indicator is exhibiting a positive crossover, though it continues to trade below the central line, signalling caution.
Last week’s movement in the index indicates key support at 23,800 and resistance at 24,400. These levels are likely to serve as critical thresholds for this week. A breakout or breakdown beyond this range could set the market’s directional trend. Sustained trading above 24,400 may propel the index toward the 24,700–24,800 zone in the coming days, while a failure to breach and hold above 24,400 could lead to increased volatility.
According to O’Neil’s methodology for market direction, the current market status is classified as a “rally attempt.” This phase begins on the third day after the index closes higher than its recent bottom, following a period of correction (also referred to as a downtrend).
Performance of Nifty Bank
The Nifty Bank index ended last week on a subdued note, forming a “Doji” candle on the weekly chart, which indicates indecision in the market. The index closed the week nearly flat.
Read this | Bank Nifty’s rebound: A signal for market outperformance?
On Monday, it opened on a flat-to-positive note but traded with a negative bias amid heightened volatility. During the first half of the session, it breached Friday’s low, but a recovery in the second half helped the index erase most of its intraday losses. It traded within a range of 52,197.25–51,693.95 before settling at 52,109.
The price action on Monday formed a “Dragonfly Candlestick” pattern on the daily chart, which is often considered a bullish reversal signal. Technically, the momentum indicator RSI is trending flat and is currently positioned at 55. Meanwhile, the MACD shows a positive crossover, providing a cautiously optimistic outlook.
The Nifty 50 is likely to trade sideways or remain flat in the coming days as long as it trends below 52,500. For a bullish trend to take shape, the index must decisively cross and hold above this key level.
According to O’Neil’s methodology of market direction, the current market status is classified as a “Confirmed Uptrend.” This phase begins with a follow-through day or when the index reclaims its previous uptrend high.
Two stocks to buy, recommended by MarketSmith India:
Ems Ltd: Current market price ₹ 845| Buy at ₹ 830–850| Profit goal ₹ 980| Stop loss ₹ 774| Timeframe 1–2 months
Also read | ‘SIP flows healthy but investors more watchful after pullback’
Affle (India): Current market price ₹ 1,736.20| Buy at ₹ 1,700–1,750| Profit goal ₹ 1,980| Stop loss ₹ 1,580 | Timeframe 2–3 months
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
