Nifty and Bank Nifty Daily Analysis for 10 December 2024
Nifty and Bank Nifty Daily Analysis for 10 December 2024
Good morning, traders!
The market started the week on a subdued note as both Nifty and Bank Nifty ended in the red. Nifty dropped 0.24%, while Bank Nifty declined by 0.19%. Both indices showed a lack of clear direction, with Nifty consolidating and Bank Nifty hovering near its all-time high. Let’s take a closer look at the technicals for the day.
Nifty Analysis
Yesterday, Nifty consolidated with a bearish bias, as anticipated in the morning analysis. The index lacked momentum and moved within a narrow range, signaling a pause at current levels.
Key Observations
Nifty needs to decisively cross 24800 to resume its bullish momentum.
Below 24500, the market could turn more bearish, with no significant support levels nearby.
Support and Resistance Levels
Resistance:
Immediate: 24700 (as indicated by increased call OI)
Stronger: 24800
Support: 24500
Open Interest and PCR Insights
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| Image from sensibull |
Open Interest (OI): Increased call OI at 24700 indicates strong resistance, with fewer signs of support below 24500 for this expiry.
Put-Call Ratio (PCR):
ATM PCR: 0.75, signaling neutral sentiment.
Overall PCR: 0.8, leaning slightly bearish.
Technical Outlook
With Nifty showing hesitation near resistance levels and increased call-side OI, the index is likely to remain range-bound with a bearish tilt unless 24800 is breached.
Bank Nifty Analysis
Bank Nifty is consolidating near its all-time high, indicating a pause after its recent rally. Thursday’s candle, marked by high volatility and extended wicks on both sides, reflects indecision in the market.
Key Observations
A breakout above or below Thursday’s candle will set the direction for the next move.
The index’s ability to sustain above key levels will be crucial in determining whether it resumes its bullish trend.
Support and Resistance Levels
Resistance: 53500
Support: 52500
Technical Outlook
Bank Nifty remains in a holding pattern. A decisive move beyond Thursday’s range will provide clarity on its next trend. Traders should focus on price action for reliable entry points.
Today’s Market Outlook
Nifty:
A breakout above 24800 could reignite bullish momentum.
Below 24500, expect increased selling pressure.
Bank Nifty:
Monitor Thursday’s candle range for potential breakouts.
Sustained movement above 53500 will confirm a bullish continuation.
Conclusion
Both indices are at a crossroads, with Nifty consolidating and Bank Nifty taking a breather near its peak. For today, market participants should adopt a cautious stance, relying on clear price action signals before making trades. With resistance levels holding firm, a breakout is needed to resume upward movement.
Stay vigilant and prioritize risk management in today’s session!
Disclaimer: This analysis is for educational purposes only and should not be considered as financial advice.
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