Nifty and Bank Nifty Daily Analysis for 05 December 2024
Nifty and Bank Nifty Daily Analysis for 05 December 2024
Good morning, traders!
Yesterday’s session brought contrasting trends in the Indian stock market. While Nifty closed flat after significant volatility, Bank Nifty displayed resilience, ending the day with a bullish candle. With the weekly expiry and the RBI meeting looming, the market is expected to remain volatile today. Here’s a detailed analysis to guide your trading decisions.
Nifty Analysis
The Nifty struggled to maintain momentum above 24500, facing selling pressure after mid-day. The index witnessed a fall of approximately 150 points before partially recovering, only to decline again. It closed the session by forming a Doji candle, indicating market indecision.
Key Levels to Watch
Resistance:
Immediate: 24600
Support:
Immediate: 24350
Open Interest and PCR Insights
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| Image from sensibull |
Open Interest (OI): Indicates heavier resistance on the call side compared to support, suggesting challenges for upward movement.
Put-Call Ratio (PCR):
ATM PCR is 0.73, signaling a cautious sentiment.
Overall PCR stands at 1.1, reflecting a neutral-to-bullish bias.
Technical Outlook
While the Nifty remains technically bullish, its upward trajectory largely depends on the strength of Bank Nifty and specific heavyweight stocks like HDFC Bank, which supported the index yesterday. A breakout above 24800 is essential to sustain the bullish momentum.
Bank Nifty Analysis
Bank Nifty continued to demonstrate strength, closing in green and forming a bullish candle. The index is moving closer to its all-time high, supported by strong buying interest.
Key Levels to Watch
Resistance: 53500
Support: 53000
Technical Outlook
Bank Nifty’s bullish momentum is a critical factor for the broader market. If the index breaks above 53500, it could create opportunities for further gains and possibly drag Nifty higher along with it.
Today’s Market Outlook
Today’s session will likely witness heightened volatility due to the weekly expiry and pre-RBI meeting anticipation. Traders are advised to remain cautious and focus on risk management.
Trading Tips:
For Nifty:
Look for a breakout above 24600 for fresh long opportunities.
Maintain caution near 24500, which acts as a critical support level.
For Bank Nifty:
Watch for a move above 53500 to confirm continued bullish momentum.
Keep support at 52500 in view for any potential pullbacks.
Conclusion
The mixed performance of Nifty and Bank Nifty highlights the need for a cautious approach in today’s trading session. While Bank Nifty shows significant strength, Nifty’s direction depends on clearing overhead resistance levels. Expect sharp intraday moves, and prioritize capital preservation over aggressive trading.
Stay vigilant and adapt your strategy to the market’s changing dynamics!
Disclaimer: This analysis is for educational purposes only and is not intended as financial advice.
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