As we commence the trading session on January 2, 2025, the Indian stock markets are poised for a cautious opening, influenced by mixed global cues and domestic indicators.
Opening Indications
- GIFT Nifty: Trading at 23,846 as of 8:04 a.m. IST, suggesting a marginally positive start for the Nifty 50, which closed at 23,742.90 in the previous session. Reuters
Nifty 50 Analysis
- Previous Close: 23,742.90
- Support Levels:
- 23,575-23,650
- Stronger support at 23,450-23,525
- Resistance Levels:
- 23,850-23,900
- Key resistance at 24,000
Analysts suggest that sustaining above 23,700 could lead the Nifty towards 23,900 and subsequently 24,000, marking critical resistance zones.
Bank Nifty Analysis
- Support Levels:
- 50,725-50,875
- Stronger support at 50,475-50,600
- Resistance Levels:
- 51,400 (10-day EMA)
- 52,304
A breach above 51,400 could indicate bullish momentum, while a dip below 50,475 may signal further downside.
Key Market News
- Automobile Sales: Maruti Suzuki and Mahindra & Mahindra reported positive December sales, boosting market sentiment.
- Banking Sector: South Indian Bank announced an 11.94% YoY increase in Q3 gross advances, potentially impacting banking stocks. Economic Times
Global Cues
Asian markets exhibit mixed trends, with the MSCI Asia ex-Japan index down 0.6%, indicating cautious investor sentiment.
Trading Strategy
Traders should monitor the 23,700 level for Nifty; sustaining above this could target 23,900-24,000.
For Bank Nifty, maintaining above 50,725 may lead towards 51,400.
Given the anticipated sideways movement until the quarterly earnings season, adopting a cautious approach with strict stop-loss levels is advisable.
