Nifty and Bank Nifty Daily Analysis for 04 December 2024

 Nifty and Bank Nifty Daily Analysis for 04 December 2024

Good morning, traders!

The market ended yesterday on a strong note, with both Nifty and Bank Nifty closing above their key resistance levels. This upward momentum signals a bullish shift in sentiment. Here’s a detailed analysis to help you prepare for today’s session.

Nifty Analysis

Nifty closed above its resistance of 24350, gaining 0.75% and reflecting a positive tone. While the index is technically bullish, multiple resistance levels lie ahead, which could act as hurdles.

Support and Resistance Levels

• Immediate Resistance: 24500

• Next Resistance: 24800

• Support Levels:

• Major: 24350

Open Interest and PCR Insights

Image from sensibull

• Put-Call Ratio (PCR):

• ATM PCR is 0.78, indicating a neutral sentiment.

• Overall PCR is 1.3, leaning toward a bullish outlook.

Trading Outlook

If the Nifty sustains above 24500, it could climb toward 24800. However, traders should remain cautious as resistance levels could trigger temporary pullbacks.

Bank Nifty Analysis

Bank Nifty outperformed yesterday, closing above its critical resistance of 52500 with a gain of 1.13%. The index also filled its 03rd October gap, adding further strength to its bullish stance.

Support and Resistance Levels

• Resistance: 53000

• Support: 52500

Chart Observations

With Bank Nifty displaying a stronger bullish trend, it could continue leading the market higher. Its momentum is likely to influence Nifty positively as well.

Key Takeaways for Today

1. Nifty:

• A move above 24500 could drive the index toward 24800.

• Keep an eye on support at 24350 to gauge downside risk.

2. Bank Nifty:

• Watch for further bullish momentum if the index holds above 52500.

• Resistance at 53000 could be the next key level to monitor.

Conclusion

With both indices closing above critical resistance levels, the overall sentiment in the market is bullish. Bank Nifty’s outperformance suggests it could play a pivotal role in driving the broader market higher. Traders should look for breakout opportunities while maintaining prudent risk management strategies.

Stay focused and trade confidently as we move through today’s session!

Disclaimer: This analysis is intended solely for educational purposes and does not constitute financial advice. Consult a professional before making trading decisions.