Nifty’s Performance on December 27
The Nifty index ended on a positive note for the second consecutive session on December 27, marking the start of the January Futures and Options (F&O) series. The index opened higher and extended its gains as the day progressed, although profit booking in some sectors led to a slight pullback later in the session.
The Nifty50 closed at 23,813.40, gaining 63.20 points or 0.27 percent. For the week, it rose by 1 percent. Key sectors contributing to the gains included auto, media, FMCG, and pharma stocks, which outperformed the broader market. However, sectors like metal, realty, oil & gas, and PSU banks saw declines, limiting the overall market’s upward momentum.
Sectoral Performance
Among the sectors, the auto, pharma, media, and FMCG stocks saw an uptick of 0.3 to 1 percent. Dr. Reddy’s Labs, M&M, IndusInd Bank, Eicher Motors, and Bajaj Finance were the major gainers. On the other hand, the metal, PSU Bank, oil & gas, and realty indices fell by 0.5 to 1 percent, with Hindalco Industries, SBI, ONGC, Coal India, and Bharat Electronics being the prominent losers of the day.
The Nifty Midcap 100 index closed lower by 0.26 percent, while the Nifty Smallcap 100 index saw a marginal rise of 0.15 percent, indicating mixed investor sentiment across different market caps.
Technical Analysis: Key Levels to Watch
Technically, the Nifty displayed a range-bound movement after several days of narrow trading. The index opened strong but faced resistance at the 23,900-24,000 levels, which led to a pullback in the middle of the session. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, pointed out that a small green candle with an upper shadow was formed on the daily chart. This pattern suggests an attempt at an upside breakout but lacks strength, which is not a positive sign for the short-term trend.
Moreover, the gap formed on December 19 is still intact, and it could be considered a bearish runaway gap, typically observed in the middle of a downtrend. This gap could act as a resistance level, hindering further upward movement.
Support and Resistance Levels
For the upcoming sessions, Nifty faces strong overhead resistance around the 24,000-24,200 levels. If the index approaches these levels, traders may view it as a sell-on-rise opportunity. The immediate support for Nifty is placed at 23,650, which could offer a cushion in case the index faces a pullback.
Bank Nifty Performance: A Detailed Look
The Bank Nifty index kicked off the trading day on a positive note, aligning with the broader market’s bullish sentiment. The index opened higher and maintained its upward trajectory for the majority of the session. As the day progressed, however, the index faced some volatility, with minor intraday dips causing a brief slowdown in momentum. Despite this, the Bank Nifty managed to hold on to its gains, reflecting the overall resilience of the banking sector.
At one point during the session, the Bank Nifty surged above the 51,600 level, indicating strong bullish activity. This level acted as a psychological and technical hurdle, but the index managed to sustain itself above that mark for a significant portion of the trading day. However, some profit booking and a slight retreat in momentum in the latter half of the session saw the index fall back from its highs.
Outlook for the Coming Week
Looking ahead, the Nifty’s short-term trend remains slightly positive, but the index is likely to encounter strong resistance at the 24,000-24,200 range. A break above this zone could pave the way for further gains, but it would require robust buying momentum to sustain. On the downside, the 23,650 level remains a key support zone to watch.
Conclusion
The Nifty index kicked off the January F&O series with a modest gain, but faces significant resistance in the near term. Investors should keep an eye on the crucial levels of 23,900-24,200 and remain cautious around those zones. Any sharp rise towards these levels could present selling opportunities, while a break below 23,650 could signal weakness.
