MARKET TRENDS:
Global cues: Positive
FII: (-3206.92 crores)
DII: (+4730.41 crores)
Sentiment: Neutral
Market Breadth: Neutral
Technicals: Consolidation zone
F&O: 25500 – 26500 zone.
INDIA VIX 11.21 (-0.13%)
USD/INR Futures (December) (90.34)
NIFTY PCR (30th December) 1.11
Bank Nifty PCR (30th December) 0.97
Nifty Outlook: Domestic liquidity and supportive global cues continue to anchor the bull case.
But the durability of this rally now hinges on two key swing factors — a weakening INR and the increasingly cautious stance of FIIs.
For now, the bears appear to have the marginal advantage.
WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:
NIFTY (CMP 25986):
SUPPORT: 25703/25317
RESISTANCE: 26157/26327
RANGE: 25800-26100
BIAS: Negative
21 DMA: 25925
50 DMA: 25596
200 DMA: 24617
SENSEX (CMP 85107)
SUPPORT: 84000/82671
RESISTANCE: 85650/86160
RANGE: 84400-85400
BIAS: Neutral
21 DMA: 84714
50 DMA: 83564
200 DMA: 80739
BANK NIFTY (CMP 59348)
SUPPORT: 58900/57157
RESISTANCE: 60100/60900
RANGE: 58700-59700
BIAS: Neutral
21 DMA: 58799
50 DMA: 57535
200 DMA: 54876
Nifty: Nifty opened on a cautious note in Wednesday’s trade, and the negative takeaway was that the selling continued thru-out the trading session as the benchmark ended on a negative note.
The index, closed well below the flat line, and most imporatnly, below the psychological 26000 mark — indicating bears aiming to take over the control.
Nifty is still above its 21 DMA (25925), 50 DMA (25596) and its 100 DMA (25240). Nifty’s 200 DMA at 24617 mark.
Nifty’s hurdles seen 26327 mark.
The technical landscape suggests Nifty’s major support at 25871/25703 mark.
Nifty’s chart of the day suggests the structure tilts towards bears amidst overbought technical conditions. The make-or-break support at 25703.
Bank Nifty: Bank Nifty (+0.13%) inched higher after a volatile trade and snapped its 2-day losing streak.
Bank Nifty’s all-time-high continue to be at 60,114.05 mark.
So, the positive takeaway from yesterday’s trade was that Bank Nifty rebounded from lower levels as the expectations remain elevated for a strong year-end finish for Nifty.
Nifty Private Bank Index (+0.59%) witnessed massive rebound from lower levels as HDFC Bank (+1.08%) and ICICI Bank (+1.38%) led from the front amidst value buying.
Bank Nifty was seen outperforming Nifty’s bearish action, ending 0.13% higher as against Nifty’s 0.46% loss.
Interestingly, Nifty PSU Banks index was down nearly 3.05% to 8,255
The shares of PSU banks dropped after government clarified that it has no plans to raise foreign direct investment (FDI) limit in these lenders from 20 percent to 49 percent.
SBI (-1.71%), Indian Bank (-5.52%), PNB (-431%), other PSU bank stocks after FinMin clarifies no proposal to hike FDI limit. This falls comes after the stocks recorded sharp gains following earlier reports.
Intraday support for Bank Nifty now seen at 58900/58300/57157 mark on closing basis.
In today’s trade and in near term, Bank Nifty is likely to face resistance at 60100 mark. Bank Nifty’s 200-DMA is placed at 54876 mark. Bias on Bank Nifty continues to be neutral.
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