Trade Setup for December 30: This week the market has given positive returns in a low volume environment. During this period, Sensex, Nifty and Nifty Bank increased by 1 percent, while the midcap index remained flat. A total of 32 Nifty stocks registered gains, with M&M, Trent and Adani Ports among the top gainers. On Friday, Nifty 50 index increased by 0.27 percent and closed at the level of 23,813.40. Now next week, the direction of Indian stock markets will be decided by auto sales data, Foreign Institutional Investors (FII), and global trends. Along with this, investors will also keep an eye on the movement of rupee. It reached its lowest level ever. FIIs remained net sellers in the cash market on Friday, while DIIs were net buyers.
What do Nifty 50 charts indicate?
Nagaraj Shetty of HDFC Securities believes that the short term trend of Nifty is slightly positive and it may see range-bound action. This week the market may face strong overhead resistance at 24000-24200 levels and if the market climbs to these levels, it could be an opportunity to “sell-on-rise” . Immediate support is at 23650.
OM Mehra of Samco Securities said the index remained below its 200-day and 9-day moving averages, indicating cautious sentiment and limited upside strength. Last week, Nifty traded in a tight range, with a high of 23,938.85 and a low of 23,647.20. Any decisive breakout outside these levels may decide the market direction for the upcoming session.
Ajit Mishra of Religare Broking said that Nifty is trying to hold its critical long term moving average (200 DEMA), but no significant recovery is being seen due to pressure from heavyweight stocks. If Nifty breaks decisively below the recent swing low of 23,500, selling pressure may increase, and the next major support level will be around the November low of 23,263.15. On the upside, the zone of 24100–24400 remains an important resistance, to overcome which strong momentum will be required.
According to Nandish Shah of HDFC Securities, the positional trend of Nifty is still bearish, as it is below the SMA of 20,50, 100 and 200 days. The band of 24065-23537 is likely to act as resistance and support for Nifty next week.
These levels will be important for Nifty Bank
Nifty Bank index closed at 51,311.30 with a gain of 0.27%. A Bullish Harami Pattern appeared on the weekly chart, indicating that if the momentum strengthens, the market may see a reversal.
Ajit Mishra further said that the index is trading below important moving averages. The support of 51000 is important to avoid further downside risks, while a decisive move above the resistance of 51800 could boost bullish momentum in the coming sessions.
Disclaimer: The advice or opinions expressed on Moneycontrol.com are the personal views of the expert/brokerage firm. The website or management is not responsible for this. Moneycontrol advises users to always seek the advice of a certified expert before taking any investment decision.