The short-term sentiment for the NSE Nifty 50 remains positive, as the index continues to stay above the key moving average on the daily chart, according to Rupak De, senior technical analyst at LKP Securities Ltd.
On the higher end, the index may continue its upward movement towards 25,000 and beyond in the short term, De said. "On the lower end, crucial support is placed at 24,500."
According to Shrikant Chouhan, head of equity research at Kotak Securities Ltd., the levels of 24,600 to 24,550 would act as key support zone for the traders. On the other hand, 24,800-24,850 would be the crucial resistance area for the bulls.
If the index falls below 24,550, then traders "may prefer to exit their long positions", he added.
The Bank Nifty has been consolidating within a narrow range of 52,500–54,000, said Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.
"The index must sustain above 54,000 levels in order to continue its upward trend. Until then, range bound consolidation will continue," he added.
Market Recap
The benchmark equity indices ended lower on Monday, weighed down by information technology and metal stocks, as well as losses across the Asia–Pacific after mixed data from China.
The Nifty 50 closed 100.05 points or 0.4% lower at 24,668.25 and the BSE Sensex ended 384.55 points or 0.47% down at 81,748.57.
FII, DII Activity
Overseas investors and domestic institutional investors turned net sellers of Indian equities on Monday after a day of buying.
Foreign portfolio investors sold stocks worth Rs 278.70 crore, whereas the DIIs offloaded stocks worth Rs 234.25 crore, according to provisional data shared by the National Stock Exchange.
F&O Cues
The Nifty December futures were down by 0.45% to 24,720 at a premium of 52 points, with the open interest up by 0.19%.
The open interest distribution for the Nifty 50 Dec. 19 expiry series indicated most activity at 26,000 call strikes, with the 24,000 put strikes having maximum open interest.
Major Stocks In News
Hindustan Petroleum: The Mumbai-headquartered company approved a 'lube modernisation and bottoms upgradation' project that is to be undertaken at the Mumbai refinery. The project would increase the production of lube oil base stocks from 475 kilotonnes per annum presently held to 764 KTP through the manufacture of Group 11+ and Group III LOBS. The estimated cost of this project is Rs 4,679 crore. The company announced a mechanical completion schedule of 36 months and three months for commissioning from the date of board approval.
Indus Tower: The Income Tax Appellate has announced that an order from the Income Tax Appellate Tribunal was ruled in favour of the company on denial of depreciation on assets received under merger, disallowance of provision for expenses, amortisation of Asset Retirement Obligation, provision for SLA Credit, etc. This is a significant positive outcome for the company and will result in a reduction of Rs 3,500 crore in contingent liability.
Gravita India: The lead-producing firm announced the launch of its Rs 750-crore qualified institutional placement offer and sets the floor price at Rs 2,206.49 apiece. The company will offload 35.78 lakh shares, according to the term sheet viewed by NDTV Profit. There is also an upsize option, which could increase the overall issue size. The indicative issue price for the QIP is Rs 2,096.2 per share, which could mark a 6.1% discount to the last closing price of Rs 2,232.9 per share.
Global Cues
Stocks in the Asia-Pacific region advanced on Tuesday as traders worldwide gear up for key central bank decisions from the US to Japan in the coming days.
Japan's Nikkei was 210 points, or 0.53%, higher at 39,662, while Australia's S&P ASX 200 was up 68 points, or 0.83%, at 8,318 as of 6:40 a.m. Stock benchmarks in China and Hong Kong continued their fall on Monday, while economists and traders expect further stimulus measures.
The yen traded positive after six days of losses ahead of the week’s Bank of Japan policy decision with less than 20% chance of a rate hike, according to Bloomberg News.
The dollar index—which tracks the greenback's performance against a basket of 10 leading global currencies—was trading 0.12% lower at 106.72. Bitcoin was trading at $106,027.06 mark.
Among the most important data points, the two-day US Federal Open Market Committee meeting concludes on Wednesday, Dec. 18. Tuesday will feature the release of US retail sales data for November.
Meanwhile, Pakistan on Monday, cut its benchmark interest rate to the lowest in more than two years after easing inflation provided room to boost growth.
Stocks on Wall Street edged higher with all eyes on the Federal Reserve. Data on Monday showed that activity at US service providers expanded at the fastest pace since October 2021. Swap traders are now pricing in around three quarter-point rate cuts over the next 12 months, Bloomberg News said.
The S&P 500 index and the tech-heavy Nasdaq Composite fell 0.38% and 1.24%, respectively, on Monday. The Dow Jones Industrial Average slipped 0.25%.
Further, Donald Trump announced that SoftBank Group Corp. planned to invest $100 billion in the US over the next four years.
Crude oil prices declined on weak demand from China. The Brent crude was trading 0.01% lower at $73.90 a barrel as of 6:53 a.m. IST, and the West Texas Intermediate was down 0.07% at $70.66.
Money Market Update
The Indian rupee closed weaker on Monday, ahead of major central banks' rate decisions this week. The currency weakened by eight paise to close at 84.87 against the US Dollar. It had closed at 84.79 on Friday.
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