Trade Setup For Dec. 26: Nifty To Retest All-Time Highs, Resistance Seen At 26,300
Amid the ebbs and flows of the market and despite a brief downward tick, analysts expect Nifty to retest record highs, and even touch a fresh milestone.
The Indian equity benchmarks settled lower on Wednesday, with Nifty 50 ending 35.05 points or 0.13% lower at 26,142.10 and Sensex ending 137.16 points or 0.16% down at 85,387.68. During the day both benchmarks had risen 0.20%.
"Nifty continues to form back-to-back small-bodied candles, indicating a pause in momentum as traders prefer to keep positions light ahead of the holiday", stated Rajesh Bhosale, Equity Technical Analyst, Angel One.
Amid the ebbs and flows of the market and despite a brief downward tick, some analysts expect Nifty to retest record highs, and even touch a fresh milestone.
"We continue to expect Nifty to retest all-time highs and potentially create a fresh milestone in the near term", Bhosale added.
He advised traders to stay focused on select themes and stock-specific opportunities that continue to exhibit relative strength.
Therefore, resistance level for the index as per analysts lie between 26300 - 26350, whereas on the downside support is seen at 26,050 - 26,000.
On the other hand, Bajaj Broking Research expects the consolidation phase to continue.
"Nifty in the last 4 weeks is seen consolidating in the range of 26,300-25,700. We expect the index to extend the same, and only a move above 26,300 will be instrumental in unlocking incremental upside potential towards the 26,500 area", the brokerage stated.
Bank Nifty
Bank Nifty is also expected to consolidate in the coming weeks with resistance levels between 59,600 - 59,800 and support situated between 59,000 - 58,800 levels.
"Index formed a bearish candlestick pattern signaling profit booking at higher levels near the last week high of 59,500. Index is seen consolidating in a range amid stock-specific action", said Bajaj Broking Research.
Market Recap
The benchmark Indian stock market indices ended on a less merrier note after trading higher intra-day on Christmas eve. The Nifty 50 ended 0.13% lower at 26,142.10 while BSE Sensex closed 0.14% lower at 85,408.70.
Most sectoral indices fell with Nifty oil and gas and Nifty IT leading the decline, while Nifty Media and Nifty Defence were among the gainers. Nifty media emerged as top sectoral gainer.
Shriram Finance, Trent, Maruti Suzuki, Apollo Hospital and UltraTech emerged as the top gainers for the day.
On the other hand, Reliance Industries, ICICI Bank, Sun Pharma, HDFC Bank and InterGlobe Aviation were the worst performers of the Nifty 50 index.
