Nifty Outlook: A sharp recovery was seen in the stock market on Friday. Nifty closed above 26,000, registering gains for the second consecutive session. The index gave a gap-up opening of 70 points amid strong global cues. However, profit booking was seen in the first hour. Shopping returned sharply after 10:30 p.m. Nifty closed near the day’s high, jumping nearly 120 points from the day’s low of 25,938. The benchmark closed 148 points higher at 26,047.
Now let us understand from the experts how the movement of Nifty will be on Monday 15th December and which levels will be important. But, before that, let us know what special happened in the market on Friday.
Nifty ended the week with a decline
Even though Nifty showed a strong rise in the last two days of the week. But, the index ended the week down 0.53%. Tata Steel, Hindalco and Eternal remained strong among the big stocks on Friday. At the same time, there was pressure on Hindustan Unilever, Max Healthcare and Sun Pharma.
Condition of sector and broader market
Market breadth remained positive and most sectoral indices closed in the green. Only Nifty FMCG and Nifty Media indices showed weakness. The strongest performance was made by Metals, Realty and Consumer Durables indices.
The bullish trend continued in the broad market also. Nifty Midcap 100 rose 1.18% and Nifty Smallcap 100 gained 0.95%.
Rupee takes new record against dollar
In the currency market, the rupee weakened for the third consecutive day and closed at a new record low of 90.42 per dollar, falling by 5 paise. The decline accelerated due to increased demand for expensive global precious metals and dollar from importers.
Expectations increased on India-US talks
There have been signs of progress in the ongoing trade talks between India and America. Also, the recent phone call between the top leaders of the two countries has raised hopes of resolving the pending issues. Positivity is being seen in the market regarding the possible trade deal.
Siddharth Khemka of Motilal Oswal says that the market may remain range-bound for the time being. At the same time, intermittent fluctuations may be seen in the Broader Index. However, he believes that any concrete progress on the India-US agreement can become a big trigger for a sharp rise in the market.
What is the expert’s opinion on Nifty?
According to Nagaraj Shetty of HDFC Securities, the underlying trend of Nifty is still strong. He says that the index has the potential to go upwards from 26,300 to 26,400. At the same time, 25,900 now remains immediate support.
Last week, Nifty found support near its 50-day moving average (25,720) and the index jumped sharply from there. According to technical charts, this level will continue to act as an important support zone in the future.
Staying above 21-DMA is a good sign
Nifty is now trading above its 21-day moving average (26,020). Nilesh Jain of Centrum Broking says that if Nifty remains above 26,000, then next week we may see a short-covering rally from 26,200 to 26,250.
Nandish Shah of HDFC Securities said that Nifty closed firmly above the key short-term moving averages, due to which the short-term trend has now turned positive. According to him, the first resistance on the upside is at 26,202, while the main support has now increased to 25,900.
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Sudeep Shah of SBI Securities says that the swing-high zone of 26,150 to 26,200 will act as an important resistance for Nifty at present. If the index remains above 26,200, then the market may see further rise to 26,350, and then to 26,500. On the downside, zone 25,900 to 25,850 will provide strong support.
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