Nifty and Bank Nifty Daily Analysis for 06 December 2024
Nifty and Bank Nifty Daily Analysis for 06 December 2024
Good morning, traders!
Yesterday’s session brought positive momentum, with both Nifty and Bank Nifty closing in the green amid significant volatility. Nifty gained 0.98%, while Bank Nifty rose 0.63%, marking a continuation of bullish sentiment. However, with the RBI policy meeting scheduled today, volatility is expected to remain high. Here’s a detailed analysis to help you navigate the market.
Nifty Analysis
Nifty crossed the key resistance level of 24500 and climbed to 24850 before facing selling pressure. The index closed with gains but is now at a crucial technical level.
Technical Observations
The 24800 level aligns with the neckline of a potential Head and Shoulders pattern, which could act as a strong resistance.
For Nifty to maintain its upward momentum, it must decisively break above 24850 and sustain.
Support and Resistance Levels
Resistance:
Immediate: 24850
Next: 25000
Support: 24500
Open Interest and PCR Insights
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| Image from sensibull |
Open Interest (OI): The highest call-side OI is at 25000, signaling a significant resistance ahead. Call-side OI remains heavier, suggesting limited upside in the near term.
Put-Call Ratio (PCR):
ATM PCR: 0.67, reflecting cautious sentiment.
Overall PCR: 1.1, leaning neutral to bullish.
Trading Outlook
Nifty’s momentum hinges on its ability to breach 24850 convincingly. A failure to do so could lead to further consolidation or a minor correction.
Bank Nifty Analysis
Bank Nifty continues to show bullish momentum, inching closer to its all-time high. Yesterday’s session saw sustained buying interest, and the index remains a strong driver for market sentiment.
Support and Resistance Levels
Resistance: 53800
Support: 52000
Key Considerations
Today’s RBI meeting could introduce heightened volatility in Bank Nifty, which might render open interest data less predictive. Price action will be the most reliable indicator during the event.
Today’s Market Outlook
Nifty:
Watch for resistance at 24850 and a potential breakout toward 25000.
Support at 24500 remains critical to prevent downside moves.
Bank Nifty:
Expect strong momentum if the index crosses 53800.
Stay cautious during the RBI announcement and focus on price action.
Conclusion
With both indices showing strength but facing key resistance levels, today’s session will likely be dominated by event-driven volatility. Traders are advised to prioritize risk management and rely on price action signals over technical indicators, as OI data may not reflect real-time market dynamics.
Stay disciplined and trade carefully in today’s highly volatile environment!
Disclaimer: This analysis is for educational purposes only and should not be considered as financial advice.
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