The NSE Nifty 50 is likely to reclaim the psychological level of 24,000 if the sentiment changes in the forthcoming week, according to Aditya Gaggar, director of Progressive Shares. “In case of trend continuation, the Index can drag to 23,350,” he said.

Aditya Gaggar said that Bank Nifty stands close to its long-term trendline and 200-day moving average support.

“If the market reverses, Bank Nifty can soar higher to 51,800, while a break below 50,500 will drag it further lower to 50,000,” he said.

The 200-day simple moving average for Nifty 50 is located near 23,830, according to Hrishikesh Yedve, assistant vice president, technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd. This 200 DSMA will serve as an immediate barrier for the index.

“Major support for the index (Nifty 50) is located near its previous swing low, which was around 23,260. If the index remains below 23,830, weakness will persist, suggesting a sell-on-bounce strategy,” he said.

The weak global cues initiated the downward move of Nifty 50, according to Osho Krishnan, senior analyst, technical and derivatives at Angel One. “But the follow-up sell-off showcases the bears’ eagerness to colour the market red ahead of Christmas,” he said.

“Considering the recent developments, it is advised to approach markets with proper risk management and refrain from taking complacent bets for the time being,” he said.

Market Recap

India’s benchmark equity indices ended at the lowest in over a month on Friday and recorded the worst week in months as hawkish outlook from the US Federal Reserve rattled global markets across the globe.

The NSE Nifty 50 closed 364.20 points or 1.52% down at 23,587.50, and the BSE Sensex ended 1,176.46 points or 1.49% lower at 78,041.59.

FII/DII Activity 

Overseas investors stayed net sellers for the fifth consecutive day and collectively offloaded stocks worth Rs 15,828 crore. Domestic institutional investors stayed net buyers for the fourth straight day.

The foreign portfolio investors offloaded stocks worth approximately Rs 3,597.8 crore on Friday, while the DIIs bought stocks worth Rs 1,374.4 crore, according to provisional data from the National Stock Exchange.

F&O Cues

Nifty December futures declined by 1.57%, settling at 23,641 with a premium of 54 points.

The open interest for Nifty December futures fell by 2.2%.

As for Nifty options expiring on Dec. 26, the maximum call open interest is at 25,000, while the maximum put open interest stands at 23,000.

Major Stocks In News

  • IDBI Bank: The board of company will meet on Dec. 31 to consider and approve raising up to Rs 10,000 crore through the issuance of infrastructure bonds in the current financial year and 2025-26 (April-March).

  • Indian Oil Corp.: The company has approved an investment of Rs 657 crore for establishing a yarn project in Odisha, which will be launched through its joint venture with MCPI. The project, located in Bhadrak, Odisha, is estimated to cost Rs 4,382.21 crore, with Indian Oil contributing Rs 657.33 crore.

  • Piramal Enterprises: The company has approved raising up to Rs 2,000 crore via NCDs in one or more tranches.

Global Cues 

Stocks in the Asia-Pacific region began the shortened trading week positively on reinforced rate cut bets by the US Federal Reserve after the inflation came in below than expected.

Japan’s Nikkei was 276 points, or 0.72%, higher at 38,981, while Australia’s S&P ASX 200 was up 71 points, or 0.89%, at 8,138, as of 6:50 a.m. Futures contracts pointed to gains in Hong Kong.

The surge in Asian stocks in early trading will put an end to the six-day decline of the MSCI Asia Pacific Index. Last week, stocks in the region suffered their worst weekly drop in more than three months as the US Fed rolled back its rate cuts in 2025.

Chair Jerome Powell focused on inflation progress in the monetary policy meet that was concluded last week that ended with a quarter-point cut. The so-called core personal consumption expenditures in the US price index for November rose 0.1% from October and 2.8% from a year earlier.

President Joe Biden signed funding legislation to keep the US government operating until mid-March, avoiding a year-end shutdown. The dollar index—which tracks the greenback’s performance against a basket of 10 leading global currencies—was trading 0.2% higher at 107.83. Bitcoin was trading at $93,906.81 mark.

The S&P 500 and the tech-heavy Nasdaq Composite rose 1.09% and 1.03%, respectively, on Tuesday. The Dow Jones Industrial Average climbed 1.18%. The yield on 10-year Treasuries fell to 4.53%.

In the week ahead, UK GDP is expected to be released on Monday, Dec. 23. The Bank of Japan is set to address the Keidanren council, which is an economic organisation of Japan’s industrial associations. The Tokyo CPI data is also expected this week along with other industrial data from Japan, China and Singapore.

The Brent crude was trading 0.37% higher at $73.21 a barrel as of 7:03 a.m. IST, and the West Texas Intermediate was up 0.45% at $69.77.

Money Market Update

The Indian rupee closed at 85.02 on Friday, after it hit a record low. The rupee strengthened by six paise to close stronger against the US dollar.

The currency opened at Rs 85.08 against the greenback, according to Bloomberg. It hit a low of Rs 85.1 after the flat opening.

. Read more on Markets by NDTV Profit.Bank Nifty stands close to its 200-day moving average support, with potential moves to 51,800 or 50,000, highlighting significant trade setups for NSE indices.  Read MoreMarkets, Business, Notifications 

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