Trade Setup For Dec. 17: Nifty Support Seen At 25,750 After Slipping For Three Sessions
On the upside, the 26,000–26,100 zone may act as a resistance area for the Nifty 50, analysts said.
The Nifty 50 index may remain cautious in the Wednesday session after facing selling pressure near its 20-day moving average, according to analysts.
The benchmark 50-stock index is drifting toward the 25,750–25,800 zone, which may act as an immediate support as it aligns with the 50-day moving average and recent price action, according to analysts at Share.Market.
"A sustained move below this area may open the door for a test of the 25,500 level, which also holds the highest weekly put open interest and may provide support. On the upside, the 26,000–26,100 zone may act as a resistance area, with heavy weekly call open interest at 26,000 indicating selling pressure at higher levels," a note said.
The Relative Strength Index, a popular technical indicator, has cooled to 47, slipping below the neutral mark and confirming waning momentum, said Om Mehra, technical research analyst at SAMCO Securities.
"The indicator is now trending lower without any visible positive divergence, indicating that upside traction has weakened in the near term," he said.
Nifty Bank
The Nifty Bank index ended the session at 59,034.60, down 0.72%, slipping toward the lower end of the day’s range.
The index has formed a bearish candlestick pattern with a lower high and a lower low signaling profit booking at higher levels near the trendline resistance joining last two weeks highs, according to analysts at Bajaj Broking.
The Nifty Bank is seen consolidating and forming a base in the range of 58,500-60,100.
Key short-term support is placed at 58,200-58,600 levels, and on the higher side, a move above 59,500 will open further upside towards the all-time high of 60100 in the coming week, analysts said.
ALSO READ
RBI Clears HDFC Bank’s Plan To Acquire 9.5% Aggregate Holding in IndusInd Bank — What Does It Mean?
Market Recap
India's benchmark indices extended losses for a third session on Tuesday, weighed down by a sharp depreciation in the Indian rupee and persistent outflows from foreign investors. Ongoing global uncertainties further dampened sentiment, keeping market participants cautious.
The BSE Sensex shed 533.50 points, or 0.63%, to settle at 84,679.86, while the Nifty 50 closed 167.20 points or 0.64% lower at 25,860.10.
Sectoral breadth remained weak, with selling pressure witnessed across most sectors. The major drag on the market came from Nifty Realty, Private Banks, IT, and Metals, all of which traded under notable pressure.
Broader markets also remained under pressure, with both Nifty Midcap 150 and Nifty Smallcap 250 slipping 0.8%, reflecting broad-based selling across the mid and small-cap segments.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
