Nifty50 on 31 December
Nifty50 ended flat on the last day of 2024, a year in which Indian equity markets experienced a roller-coaster ride and gained more than 8.75%. The index had a strong first half of the year, driven by strong earnings and macroeconomic indicators, and hit a new all-time high of 26,277. However, in the second half of the year, especially in Q4 (October to December) the index gave up some of its gains.
Taking cues from global markets, the index had a gap-down opening at 23,560 on Tuesday and fell to 23,460 in the first hour of trading. However, it then made a smart comeback, supported by oil and gas, pharma, metal, and FMCG stocks, and closed at 23,644. The advance-decline ratio was inclined toward advancers and settled around 2:1.
Technically, the index remained traded below the 200-DMA and traded around 1% below its 200-DMA. The momentum indicator, 14-day relative strength index (RSI), is trending in the flat zone with a negative bias and is placed around 37 on the daily chart, along with a negative crossover on moving average convergence/divergence (MACD).
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According to O’Neil’s methodology of market direction, the current market status is a “rally attempt”. A rally attempt begins on the third day when the index closes higher off the most recent bottom after being in a correction.
The index is hovering below its 200-DMA and traded in the range of 23,600–23,900 on Tuesday. Strong technical support is placed around the 50-week moving average on the weekly chart around 23,600-23,400. The prevailing market trend indicates that a sustainable decline below 23,600 could open a fresh downside window toward 23,400, followed by 24,200. Conversely, the index faces significant resistance near 23,900, and a decisive breakout above this level could drive it toward 24,200 in the coming days.
How Nifty Bank performed
Nifty Bank opened on a negative note and traded in negative territory throughout Tuesday’s trading session. It formed a bearish candle with a lower-high and lower-low price structure on the daily chart. The index retested its 200-DMA but managed to close above that level. It opened at 50,648.20, traded within a range of 50,945.55–50,599.80, and ultimately closed at 51,886.20. As a result, the index closed 93 points lower (-0.18%) on Tuesday.
The RSI has been moving sideways with a negative bias, currently at 38, while the MACD remains in negative territory on the daily chart.
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According to O’Neil’s methodology of market direction, the index is an “uptrend under pressure”. The total distribution day count remains at three. A distribution day occurs when the benchmark index or a major sectoral index falls 0.2% or more on higher volume than the previous day.
At this stage, the index has been fluctuating between its 200- and 100-DMA since 19 December, indicating a sideways trend with a negative bias. Immediate resistance is positioned in the range of 51,700–52,000, while strong support is placed around 50,500–50,400, as the 200-DMA is placed in this particular price range.
Stocks to buy, recommended by MarketSmith India:
- Apar Industries: Current market price ₹10,317.60 | Buy range ₹9,700–10,500 | Profit goal ₹12,400 | Stop loss ₹9,480 | Timeframe 2–3 months
- Granules India: Current market price ₹592.30 | Buy range ₹ 580–600 | Profit goal ₹675 | Stop loss ₹557 | 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.
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