Nifty Outlook: After a sharp fall in the beginning, the market has recovered from lower levels. Nifty has improved by about 100 points from the bottom and is trading around 25850. At the same time, Nifty Bank has also recovered 250 points from the bottom. Mid and small cap stocks have also improved. IT and capital market shares have fallen the most. Both the indexes are weak by one to one and a half percent. BSE has become the top loser in share futures. There is also pressure on auto and metal stocks. But there has been good recovery in PSU banks and consumer durables.
Hero Moto’s stock has fallen after USB’s report on decline in market share. This share is down about two and a half percent. The company’s market share has declined by 19 percent so far in the month of December. Its market share in November was 35 percent.
Keep an eye on these important levels in the market
nifty view
Kshitij Gandhi of SMC Global Securities Says Nifty slipped below 26,000 mark due to long unwinding pressure. Despite this sharp decline, the index is still hovering around its short-term moving average on the daily chart, providing some support. However, momentum indicators are now cooling down, indicating fatigue. In such a situation, it would be advisable to exercise caution in the near future.
On the derivatives front, heavy Call open interest build-up at 26,200–26,300 strikes shows a clean supply zone, limiting any chances of immediate upside. With Nifty trading below 26,100, buyers may withdraw. A decisive break below 25,800 could open the way for further downside towards 25,700–25,600. Till then, the market may proceed with a cautious approach.
Vigyan S Sawant, Head of Research at GEPL Capital Says Nifty made a new lifetime high at 26,325 last week, showing strong bullish momentum. However, after reaching this new high, the index faced profit booking at upper levels. Traders preferred to book profits rather than chasing prices. As a result, Nifty closed Monday’s session just above last week’s low, indicating a sense of short-term caution among market participants.
From a technical point of view, the index is currently hovering around its 20-day Simple Moving Average (SMA), which is a sign of a consolidation phase. Neither bull nor bear has decisive control here. The lack of strong directional movement indicates a sideways trend.
Furthermore, the Relative Strength Index (RSI) remains below the 60 mark, indicating a lack of bullish momentum. This confirms that Nifty is trading in a range-bound zone and waiting for a fresh trigger for the next directional move. This trigger can be fundamental or technical.
bank nifty view
Kshitij Gandhi Bank Nifty also started the week on a weak note and continued its decline amid cautious global cues. The index immediately slipped below the support level, although it remains around its short-term moving average on the daily chart. Due to profit booking being dominant, there is less interest in new purchases, which calls for a cautious approach.
Bank Nifty is trading near the important support level of 59,000, so the bullish camp may remain defensive. A decisive breakdown below 59,000 may increase selling pressure and open the way for a decline towards 58,700–58,400. For now, the index looks set for consolidation with a negative trend until key resistance levels are reclaimed.
Vigyan S Sawant Says Bank Nifty is outperforming the benchmark Nifty and closed at new all-time high last week. On the weekly chart, it is holding a higher high-higher low structure, indicating a strong and sustained uptrend. On the daily timeframe, the Banking Index has respected the Change in Polarity (CIP) zone near 58,560 levels, which is now acting as an important support. This is a sign of strength in the ongoing bullish move. Furthermore, the RSI remains above 60 on multiple timeframes, confirming strong positive momentum. Resistance for the index is at 60,114, 61,200 and support is at 58,500, 57,000.
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