Nifty and Bank Nifty Daily Analysis for 12 December 2024
Nifty and Bank Nifty Daily Analysis for 12 December 2024
Good morning, traders!
The markets remain in a consolidation phase, with Nifty closing flat yesterday, gaining a modest 0.13%, while Bank Nifty ended in the red with a -0.35% indecision candle. The tight trading range over the last few sessions has favored non-directional traders, offering profitable opportunities through range-bound strategies. Let’s analyze today’s setup.
Nifty Analysis
Nifty continues to trade within a narrow range, displaying indecision as it approaches key resistance levels.
Key Observations
The immediate resistance level is 24700, followed by a major resistance at 24800.
On the downside, 24500 acts as support, and a break below this level could trigger bearish momentum.
Open Interest and PCR Insights
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| Image from sensibull |
Open Interest (OI): Heavy call-side OI at 24700 indicates strong resistance.
Put-Call Ratio (PCR):
ATM PCR: 0.65, reflecting a neutral stance.
Overall PCR: 0.7, showing limited directional bias.
Trading Outlook
For bullish trades, wait for a decisive breakout above 24800.
For bearish trades, a breakdown below 24500 can provide opportunities, with a cautious approach due to expiry-related volatility.
Bank Nifty Analysis
Bank Nifty remains range-bound, forming indecision candles since last Friday. The index needs to break above last Thursday’s high for a clear bullish trend to emerge.
Key Observations
Resistance: Thursday’s high near 53500 remains a significant barrier.
The index currently has no strong support below 52500, increasing the likelihood of volatility.
Today’s Market Outlook
With the Nifty weekly expiry today, markets are likely to experience heightened volatility. Both indices are at critical levels and can break in either direction.
Nifty:
A breakout above 24700 could lead to a quick 100-150 point rally, but the index must sustain above 24800 for further bullish momentum.
On the downside, a fall below 24500 opens up shorting opportunities.
Bank Nifty:
Watch for a breakout above Thursday’s high for a bullish move.
If the range-bound pattern continues, non-directional strategies like iron condors or straddles could be effective.
Conclusion
Both Nifty and Bank Nifty are at critical levels, with resistance around 24700 being a significant hurdle for Nifty. Traders should remain cautious today, as expiry-related volatility could lead to unexpected price movements. Focus on key levels and plan trades accordingly, prioritizing risk management.
Trade wisely and stay prepared for any market surprises!
Disclaimer: This analysis is for educational purposes only and should not be considered financial advice.
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