Trade Setup For Dec. 10: Nifty 50 Faces Resistance At 24,750–24,800 Levels

The NSE Nifty 50 is trading above the November swing highs on the daily chart, which suggests a solid formation even as the direction is unclear, according to analysts.

Rajesh Bhosale, a technical analyst at Angel One Ltd., said the Nifty is facing resistance around the 24,750-24,800 range. "This zone marks a 50% retracement of the sharp decline from the all-time high of 26,277 to 23,263. For now, this remains a key resistance level, and a sustained move above it could open the door for a rise beyond the 25,000-mark," he said.

On the downside, 100-day exponential moving average support for Nifty is placed near 24,330. As long as the index sustains above it, traders are advised to adopt a buy-on-dips strategy, said Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.

On the upside, Nifty could test the levels of 24,800-25,000 in the short term, he added.

For the Nifty Bank, the index holds strong support near 52,800, maintaining a constructive short-term outlook, said Om Mehra, technical analyst at SAMCO Securities.

"A decisive close above 53,800 is essential to re-establish bullish momentum and increase the trend. In the short term, the index is expected to trade within the range of 52,800 as support and 53,800 as resistance," he said.

Overseas investors turned net buyers of Indian equities on Monday after a day of selling, while domestic institutional investors turned net sellers after a day of buying.

Foreign portfolio investors bought stocks worth Rs 724.27 crore, while the DIIs sold stocks worth Rs 1,648.07 crore, according to provisional data shared by the National Stock Exchange.

The Nifty November futures were down by 0.34% to 24,698 at a premium of 79 points, with the open interest down by 0.68%.

The open interest distribution for the Nifty 50 Dec. 12 expiry series indicated most activity at 26,000 call strikes, with the 21,600 put strikes having maximum open interest.

Benchmark indices ended Monday's session on a subdued note, with Reliance Industries Ltd. and FMCG stocks weighing on performance. The Nifty 50 closed 58.80 points or 0.24% lower at 24,619, and the BSE Sensex fell 200.66 points (0.25%) to 81,508.46. Both indices had dropped 0.4% earlier in the day.

Most sectoral indices declined, particularly FMCG and Media. However, the broader markets saw gains, with the BSE MidCap and SmallCap rising 0.32% and 0.46%, respectively.

• Vodafone Idea: The company raised Rs 1,980 crore through preferential issue of shares to UK parent Vodafone Group.

• Bharat Electronics: The company received an order worth Rs 634 crore. Major orders include maintenance of Akash Missile System, telescopic sights for guns, communication equipment, jammers, electronic voting machines, test stations, spares, services, etc.

• JSW Steel: The company reported consolidated Crude Steel production for the month of November’24 at 23.23 Lakh tonnes. Indian Operation production was higher by 7% YoY while consolidated Crude Steel production grew by 5% YoY.

• Insurance Companies: Insurance companies will be in focus on the back of data released by the Life Insurance Council for the month of November.

Stocks in the Asia-Pacific region advanced on Tuesday on optimism over China's easing monetary stance as its top political body sets to revive the economy before Donald Trump takes office.

Japan's Nikkei was 163 points, or 0.42%, higher at 39,326, while South Korea's Kospi was up 50 points, or 2.1%, at 2,410 as of 6:45 a.m. The future contracts in Hong Kong signalled that the Hang Seng is poised to jump more than 3% at the open.

China’s top leaders changed their stance on monetary policy for the first time in some 14 years. The Politburo announced it will embrace a “moderately loose” strategy, in a sign of greater easing ahead that will likely be welcomed by investors hungry for more stimulus. 

Shares in South Korea will be in focus after its top count banned the President from travelling overseas after his brief declaration of martial law.

Meanwhile, stocks in Wall Street closed the session negative with traders awaiting key inflation data that will help shape the outlook for Federal Reserve monetary policy. The S&P 500 index and the tech-heavy Nasdaq Composite fell 0.61% and 0.62%, respectively, on Monday. The Dow Jones Industrial Average slipped 0.54%.

• US Dollar Index at 106.14.

• US 10-year bond yield at 4.20%.

• Brent crude up 1.43% at $72.14 per barrel.

• Bitcoin was up 1.1% at $97,998.88.

• Gold spot up 0.01% at $2,660.51.

The Indian rupee weakened by three paise to close at 84.73 against the US dollar on Monday, after opening four paise strong at 84.66 against the greenback in the morning's trade.

The domestic currency had closed last week on a positive note after the Reserve Bank of India's Monetary Policy Committee maintained the benchmark interest rates and unveiled measures to boost liquidity in the market.