Nifty and Bank Nifty Daily Analysis for 03 December 2024
Nifty and Bank Nifty Daily Analysis for 03 December 2024
Good morning, traders!
As anticipated, the market remained in an indecisive phase yesterday. After an initial dip, both Nifty and Bank Nifty recovered and ended the session in the green. Here’s an in-depth analysis to help you strategize your trades for today.
Nifty Analysis
The Nifty witnessed a sharp decline of around 150 points in the early session but found strong support at 24000, leading to a recovery. As the index edges closer to its key resistance at 24350, traders should watch for a decisive breakout to confirm fresh bullish momentum.
Image from TradingView
Support and Resistance Levels
Resistance Levels:
Immediate: 24350
Next: 24500
Support Levels:
Major: 24000
Open Interest and PCR Insights
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| Image from Sensibull |
Open Interest (OI): Highlights strong support at 24000, with resistance building at 24500.
Put-Call Ratio (PCR):
ATM PCR is 0.86, reflecting a cautious sentiment.
Overall PCR stands at 1.2, leaning towards a bullish outlook.
Trading Outlook
The Nifty needs a close above 24350 to attract fresh buying interest. Until then, it is likely to remain sideways to bearish. Traders should be cautious near resistance levels and monitor volume for confirmation of any breakout.
Bank Nifty Analysis
Bank Nifty traded within a range yesterday, marked by significant volatility. After lagging for most of the session, it staged a recovery post-1 PM. However, the index continues to consolidate, reflecting the market's cautious approach ahead of upcoming events.
Image from TradingView
Support and Resistance Levels
Resistance: 52500
Support: 51800
Chart Observations
The index remains range-bound, with volatility creating opportunities for intraday trades. A decisive breakout above 52500 could lead to bullish momentum, while a fall below 51800 may invite further downside pressure.
Key Takeaways for Today
Nifty:
Watch for a close above 24350 for fresh bullish setups.
Support at 24000 remains critical for downside protection.
Bank Nifty:
Volatility persists, with 51800 as support and 52500 as resistance.
Range-bound movement provides intraday trading opportunities.
Conclusion
As both indices approach critical levels, today’s session could set the tone for the rest of the week. Traders should remain patient, waiting for clear signals to enter trades. A close above resistance levels will be key for sustained bullish momentum.
Stay disciplined and focus on risk management while navigating the market's volatility.
Disclaimer: This analysis is intended solely for educational purposes and does not constitute financial advice. Consult a professional before making trading decisions.
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