Trade Setup For Dec. 9: Nifty 50 Sees Immediate Support At 24,550
Analysts highlight 24,550 as a key support level for Nifty 50, while resistance zones are identified at 25,000–25,400, backed by positive technical indicators and market sentiment.
The NSE Nifty 50 finds immediate support near 24,550, with key resistance positioned at the 25,000–25,200 levels. Analysts highlight further resistance in the 25,200–25,400 zone while maintaining a positive outlook as long as the index stays above 24,300.
"Technically, the support base now shifts upward towards 24,500 on an intermediate basis, which is likely to cushion any intra-week blips, followed by a sacrosanct support zone placed from the 24,350–24,250 zone," according to Osho Krishnan, senior analyst of technical and derivatives at Angel One.
"On the higher end of the spectrum, 24,800, followed by 25,000–25,100, is likely to be seen as the next potential resistance for the benchmark index in the upcoming week," Krishnan said.
Technically, on the daily chart, the index took a pause after a strong rally and formed a small red candle, while on the weekly chart, it formed a strong bullish candle, indicating strength, according to Hrishikesh Yedve, assistant vice president for technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd.
Yedve noted that, additionally, the index has witnessed a breakout from an inverted head and shoulders pattern. "As per this breakout, the index could test 25,000–25,200 levels in the medium term. Immediate support is placed near 24,550, followed by 24,300. As long as the Nifty stays above 24,300, traders should adopt a buy-on-dips strategy," he said.
"As RBI reduced the CRR by 50 bps to 4% in line with market expectations, this move is expected to enhance liquidity in the financial system, support credit growth, and aid economic recovery. The repo rate was maintained at 6.5%, showcasing a balanced approach to managing inflation while fostering growth," according to Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services Ltd.
"Next week, we expect Nifty to maintain its gradual upmove, driven by a potential increase in liquidity post RBI’s CRR cut, positive news flows around government policies, and the return of FII inflows," said Khemka.
Bank Nifty settled the day on a marginally negative note at 53,510 levels. "On the higher side, the index could attempt to test levels of 54,000–54,500 in the short term. On the downside, 52,850 will act as immediate support for the index, followed by 52,500," said Yedve. So, he advised traders to adopt a buy-on-dips strategy in Bank Nifty.
FII/DII Activity
Overseas investors turned net sellers of Indian equities after buying for three consecutive sessions on Friday, while the domestic institutional investors turned net buyers after three days of selling.
Foreign portfolio investors offloaded stocks worth Rs 1,830.31 crore, and domestic institutional investors bought shares worth Rs 1,659.06 crore, according to provisional data shared by the National Stock Exchange.
F&O Action
The Nifty November futures rose by 0.04% to 24,775, at a premium of 98 points, with the open interest down by 1.64%.
The open interest distribution for the Nifty 50 Dec. 12 expiry series indicated most activity at 26,200 call strikes, with the 21,600 put strikes having maximum open interest.
Market Recap
The NSE Nifty 50 and BSE Sensex ended Friday's session with a marginal loss as HDFC Bank Ltd. and Reliance Industries Ltd.'s share prices dragged. The NSE Nifty 50 posted the biggest weekly gains since early June.
The Nifty 50 ended 39.05 points, or 0.16%, down at 24,669.35, and the Sensex ended 56.74 points, or 0.07%, down at 81,709.12.
Major Stocks In News
One 97 Communication: Paytm is set to sell its 5.4% stake in Japan's digital payments company PayPay Corp. to investor SoftBank for $250 million, or around Rs 2,000 crore. The company’s arm approved the sale of stock acquisition rights in Japan's PayPay Corp.
Delta Corp: The board decided to optimise the Dhargal Project by transferring its arm, Deltin Hotel and Resorts.
Wipro: The company signed an agreement with SIAM.AI for AI-powered digital assistant for the tourism authority of Thailand.
AIA Engineering: The US Department of Commerce's imposition of an anti-dumping duty of 4.30% on certain high chrome cast iron grinding media imported from India became effective today, Dec. 6, 2024.
JSW Energy: The company’s arm received a letter of award for setting up a 400-MW ISTS-connected solar power project from NTPC against a tariff-based competitive bid.
Inox Green: The company entered into a share purchase agreement to sell its entire stake in arms, including Flurry Wind Energy and Flutter Wind Energy.
Laurus Labs: The arm signed a definitive pact for an equity investment of Rs 120 crore from Eight Roads Ventures and F-Prime Capital. The company agreed to co-invest an additional Rs 40 crore at the same valuation.
Alembic Pharma: The company dissolved six step-down subsidiaries.
Money Market
Rupee strengthened sharply against the US dollar as the Reserve Bank of India raised the interest rate ceiling on deposits on foreign currency non–resident accounts, and cut the cash reserve ratio to boost liquidity in the banking system.
The Indian unit rose 16 paise to the day's high of 84.57 a dollar against the greenback. It opened flat at 84.65 a dollar. The rupee closed at 84.73 a dollar on Thursday, according to data on Cogencis.
