Nifty 50 on 30 December
The Nifty 50, India’s benchmark index, continued to struggle in surpassing and sustaining above its 200-day moving average (DMA), remaining range-bound between 23,600 and 23,900. On Monday, the index opened lower at 23,796, climbed to an intraday high of 23,915 in the first half, but faced selling pressure in the latter half, sliding to 23,599 before closing near its day’s low at 23,644.90.
The index declined by 0.71%, forming a bearish candle on the daily chart. Except for Pharma and FMCG, all major sectoral indices ended in the red, with Realty, Auto, Metal, and Banking stocks taking the hardest hits. The advance-decline ratio was skewed toward decliners at approximately 1:3.
Read this | Sebi’s meds do the trick in slowing retail options frenzy. Next dose in January.
From a technical perspective, the index has remained below its 200-DMA for six consecutive sessions, trading in a range-bound zone with a negative bias. The 14-day Relative Strength Index (RSI) is trending flat with a negative bias at around 38, while the Moving Average Convergence/Divergence (MACD) shows a negative crossover.
Under O’Neil’s methodology of market direction, the index is currently in a “Rally Attempt” phase, which begins on the third day after the index closes higher from its most recent bottom following a Correction (or Downtrend).
The Nifty is hovering below its 200-DMA, with strong technical support at the 50-week moving average (WMA) around 23,600–23,400. A sustained break below 23,600 could open the door for further downside to 23,400. On the upside, the index faces significant resistance at 23,900. A decisive breakout above this level could propel the index toward 24,200 in the near term.
How Nifty Bank performed
Nifty Bank opened on a negative note but quickly saw buying interest, briefly pushing the index into positive territory. However, this upward momentum was short-lived as selling pressure intensified post-12 noon, dragging the index back into the red. It opened at 51,255.35, traded within a range of 51,979.75–50,718.35, and closed at 51,952.75, down 359 points (-0.70%) for the day.
The index formed a bearish candle with a long upper wick, reflecting significant selling pressure at higher levels.
The Relative Strength Index (RSI) remains sideways with a negative bias at 39, while the Moving Average Convergence Divergence (MACD) continues in negative territory on the daily chart.
Read this | India’s stock market in 2025 and the growing appeal of US bonds
As per O’Neil’s market direction methodology, Nifty Bank is currently in an “Uptrend Under Pressure,” with the total distribution day count standing at three. A distribution day is marked when an index drops 0.2% or more on higher volume compared to the previous day.
The index has been oscillating between its 200-day and 100-day moving averages since 19 December, indicating a sideways trend with a negative bias. Immediate resistance lies in the 51,700–52,000 range, while strong support is positioned around 50,500–50,400, aligning with the 200-DMA in this zone.
Stocks to buy, recommended by MarketSmith India:
● Piramal Pharma Ltd: Current market price ₹ 265.30 | Buy range ₹ 259–267 | Profit goal ₹ 318 | Stop loss ₹ 243 | Timeframe 2–3 Months
Also read | Top 10 stocks to add to your watchlist for 2025
● Inox Green Energy Services: Current market price ₹ 175.19 | Buy range ₹ 170–176| Profit goal ₹208 | Stop loss ₹ 160 | Timeframe 2–3 Months
Disclaimer: Views and recommendations in this article are those of individual analysts. These do not represent the views of Mint. We advise investors check with certified experts before making any investment decisions.
