Nifty and Bank Nifty Daily Analysis for 16 December 2024

Good morning, traders!

Last week, both Nifty and Bank Nifty traded within a tight range, but Friday brought significant volatility. Despite falling around 1.3% intraday, Nifty recovered strongly to close with a 0.89% gain, forming a bullish candle.

Nifty Analysis

Friday’s recovery looks promising, but Nifty remains in a no-trade zone as it failed to break key resistance levels.

Key Levels to Watch

• Resistance: 24800 (immediate) and 25000.
• Support: 24700 and 24500.

Insights

• PCR Data:
  • ATM: 0.88 (neutral to slightly bullish).
  • Overall: 1, indicating mild bullish sentiment.
• Institutional activity shows no significant buying, which limits confidence in the upside.

Trading Outlook

A sustained move above 24800 is necessary for fresh buying opportunities. Until then, Nifty is likely to remain sideways.

Bank Nifty Analysis

Similar to Nifty, Bank Nifty also formed a bullish candle on Friday but closed within last week range.

Key Observations

• Bank Nifty remains indecisive, with resistance above its range and support below.
• The chart lacks clear directional cues, making it prudent to stay cautious.

Conclusion

Both Nifty and Bank Nifty are currently in a no-trade zone, with strong resistance above and support below. In such uncertain market conditions, preserving capital is key. Wait for a breakout above resistance levels or a breakdown below support before initiating trades.

Stay patient and let the market offer clarity before making your move.

Disclaimer: This analysis is for educational purposes only and not financial advice.