The NSE Nifty 50 is consolidating within a range, with immediate support identified near 23,500 and resistance around 23,850. Analysts suggest a decisive move beyond 23,850 could drive the index towards 24,000-24,100 levels, while a breach below 23,500 may lead to further downside.

Market sentiment remained subdued during the holiday-shortened week, with benchmark indices seeing muted activity amid thin volumes and reduced risk appetite. Indian equities lost steam by the end of the session on Dec. 24. 

The index is oscillating in a well-maintained range of 23,650-23,850, and a breakout on either side is necessary for a concrete inference, said Aditya Gaggar, director of Progressive Shares.

“Technically, Nifty attempted to cross the 200-Day Simple Moving Average (200-DSMA) hurdle but faced resistance near yesterday’s high of 23,870 and formed a small red candle. The 200-DSMA is currently placed near 23,850, which will act as an immediate hurdle for the index,” according to Hrishikesh Yedve, AVP technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.

“A sustainable move above 23,850 will push the index further higher to 24,000-24,100 levels. On the downside, 23,500 will serve as immediate support. So, in the short term, the index is likely to consolidate in the range of 23,500-23,850 levels. Either side breakout will set the future direction of the index,” Yedve noted.

Bank Nifty closed on a marginal negative note at 51,233. Yedve noted that on the daily chart, the index formed a small red candle. On the downside, the 200-day simple moving average, or 200-DSMA, is placed near 50,540, which will act as a strong support for the index.

“On the higher side, the 100-day exponential moving average hurdle is placed near 51,650 levels. So, in the short term, the index is likely to consolidate in the range of 50,540-51,650 levels. Either side breakout will set the future direction of Bank Nifty,” he further said.

FII/DII Activity 

Overseas investors stayed net sellers for the seventh consecutive day, and domestic institutional investors stayed net buyers for the sixth straight day on Tuesday.

FPIs offloaded stocks worth approximately Rs 2,454.21 crore, and domestic institutional investors bought stocks worth Rs 2,819.25 crore, according to provisional data from the National Stock Exchange.

F&O Cues

The Nifty December futures were down by 0.01% to 23,772 at a premium of 45 points, with the open interest down by 38%.

The open interest distribution for the Nifty 50 Dec. 26 expiry series indicated most activity at 24,000 call strikes, with the 22,000 put strikes having maximum open interest.

Major Stocks In News

  • UltraTech Cement: The company acquired a 26% stake in Clean Max Sapphire worth Rs 45.76 crore for the company’s green energy needs. The company has also completed the acquisition of a 32.72% stake in India Cements. The company’s stake in India Cements is now at 55.49%.

  • Bharat Forge: The company to make an investment of 39 million more in Germany-based Arm Bharat Forge Global Holding.

  • H.G. Infra Engineering: The company’s arm H.G. Green Energy transferred 26% of its partial stake from its five arms to Stockwell Solar Services.

  • BPCL: They have emerged as the lowest bidder for the 150 MW NTPC tender for a project worth Rs 756.45 crore.

Market Recap

The benchmark stock indices resumed its declining trajectory on Tuesday after a one-day rise as share prices of Infosys Ltd. and State Bank of India dragged.

The NSE Nifty 50 ended 25.80 points, or 0.11%, down at 23,727.65, and the BSE Sensex settled 67.30 points, or 0.1%, lower at 78,472.87. During the day, the Nifty rose 0.48% to 23,867.65, while the Sensex advanced 0.43% to 78,877.36.

Global Cues

Most stocks in the Asia-Pacific region were trading higher on Thursday in a truncated trading week as sentiments were buoyed after Wall Street extended a rally on Tuesday led by tech shares.

Japan’s Nikkei was 165 points, or 0.41%, higher at 39,297, while South Korea’s Kospi was flat at 8,439, as of 7:03 a.m. Futures contracts pointed to losses in mainland China and marginal gains in Hong Kong.

Japan’s service-sector inflation rose for a second straight month rising to 3.0% in November. Meanwhile, the Bank of Japan Governor expects the economy to move closer to sustainably achieving the central bank’s 2% inflation target next year.

Stocks in China will be in focus as the central bank kept its one-year medium-term lending facility steady at 2% on Wednesday. The South Asian country is set to expand the investment scope of local government special bonds to boost the economy.

Japan’s industrial production data for the month of November is expected on Friday and is likely to fall due to a downswing in the output of high-value-added products. Tokyo will also announce their CPI data on Friday as well.

Meanwhile, banking and business groups in the US sued the Federal Reserve over the central bank’s annual stress tests, saying they’re seeking more transparency and input into how the rules are adopted.

Stocks in the US closed Tuesday session higher ahead of Christmas as big technology stocks continued to power the rally. The S&P 500 and the tech-heavy Nasdaq Composite rose 1.10% and 1.35%, respectively, on Tuesday. The Dow Jones Industrial Average climbed 0.91%.

The S&P 500 is on its way to record a stellar annual return and back-to-back years of more than 20% gains, according to Bloomberg.

The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was trading 0.09% lower at 108.16.

Crude oil prices extended its gain after power supplies in Ukraine was impacted amid a large-scale missile attack by Russia targeting the nation’s energy infrastructure.

The Brent crude was trading 0.22% higher at $73.74 a barrel as of 7:16 a.m. IST, and the West Texas Intermediate was up 0.31% at $70.32.

Money Market

The Indian rupee closed at a record closing low of 85.20 per dollar on Tuesday, weakening by 8 paise from its previous close of 85.12. During intraday trade, the currency fell to a new low of 85.21 amid sustained dollar strength and global pressures.

The rupee had opened 2 paise stronger at 85.10 against the greenback but quickly gave up gains as the session progressed. The initial uptick was supported by thin trading volumes ahead of the Christmas holiday season.

. Read more on Markets by NDTV Profit.The NSE Nifty 50 remains within a tight range of 23,500-23,850, with analysts suggesting a decisive move could drive the index to 24,100 or lower it below 23,500.  Read MoreMarkets 

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