Trade Setup For Jan 6: Nifty's Short-Term Outlook Bullish, Immediate Resistance At 26,350
On the other hand, the key support levels for Nifty 50 lie between 26,150 and 26,100.
The Indian equity markets faced volatility in Monday's session fuelled by the United States carrying out a large-scale military strikes against Venezuela on Saturday. Both benchmarks ended the day in losses.
However, analysts project a bullish momentum to sustain in the near-term. Key support levels lie between 26,150 and 26,100, while on the higher side 26,350 and 26,400 are immediate resistance levels, according to Shrikant Chouhan, Head Equity Research, Kotak Securities.
"The intraday market texture is volatile; hence, level-based trading would be the ideal strategy for day traders," Chouhan added.
"The index has formed a small bearish candle signaling consolidation at all time high after the last week strong up move," stated Bajaj Broking Research.
However, the brokerage highlighted that the index continues to trade well above its key moving averages, confirming the strength of the ongoing uptrend.
"Going ahead, traders are advised to maintain a stock-specific and thematic approach to capture outperformance. Also, one needs to keep a close eye on global and geopolitical developments, as they may drive short-term volatility," said Rajesh Bhosale, Equity Technical Analyst, Angel One.
Bank Nifty Outlook
The Bank Nifty touched a record high in the opening trade and began the session on a positive note. However, profit-booking at higher levels led to the index giving up its gains and closing the session marginally lower.
"Going ahead a follow through strength above Monday’s high (60,437) will open further upside towards 60,700 initially followed by 61,400 levels from a short-term perspective," stated Bajaj Broking Research.
On the downside, immediate support is placed at 59,500 levels while key short-term support is placed at 59,000-58800 levels, it added.
Market Recap
The benchmark 50 Nifty ended the session at 26,250.30, down 0.3%, after registering a fresh peak of 26,373.20 during the day, before witnessing a mild-cooling toward the close.
Optimism over healthy third quarter business updates from financials and other companies was tempered by caution surrounding the implications of US military action in Venezuela. In the broader market, Nifty Midcap100 ended 0.2% lower while Nifty Smallcap100 outperformed, gaining 0.5%.
