Commenting on the day’s action, expert Satish Chandra Aluri, Lemonn Markets Desk said that overall sentiment remains cautious as investors await fresh triggers. Lack of any big moves in either direction will likely keep Nifty in sideways consolidation until new year, he said. “We believe that markets are entering a new macro regime in 2025, with rising uncertainty on inflation and growth leading to a higher for longer interest rates in the US. Earnings season along with the budget and Trump’s inauguration will be the next triggers for market direction in the new year,” he added.
What should traders do? Here’s what analysts said:
Rupak De, LKP SecuritiesNifty traded sideways as investors stayed on the sidelines. The index remained below the 200 DMA, reinforcing the prevailing weakness. The RSI indicator showed bearish momentum with a weak crossover, indicating sluggish movement. In the short term, the index may stay under pressure or struggle to rise to higher levels. Support is at 23,700/23,600, while resistance is seen at 23,850.
Chandan Taparia, Motilal Oswal
This week nifty traded in a narrow range of 300 points, showing no clear direction. For the last three days index struggled near the 23,870 level on the upside while finding support around 23600 on the downside. This tug of war between bulls and bears led to the formation of multiple Doji candles and inside bars on the daily chart indicating indecision. Nifty is hovering near its 200-day EMA and trading below its short-term moving averages as well. On the weekly chart, the index has formed a Doji candle indicating support-based buying, but with limited upside potential.FII selling pressure has been significant as reflected by a decline in the Long-Short ratio which has dropped to 23%. Based on the current price structure as long as Nifty trades above the 24,500 zone index can witness some swings towards 23,900-24,000 zone.On option front, Maximum Call OI is at 24,000 then 25,000 strike while Maximum Put OI is at 23800 then 23000 strike. Call writing is seen at 23800 then 24000 strike while Put writing is seen at 23,800 then 23,000 strike. Option data suggests a broader trading range in between 23,200 to 24,200 zones while an immediate range between 23,500 to 23,900 levels.
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates
Nifty opened on a positive note but remained sluggish throughout the day before closing slightly higher at 23,750. The volatility index, India VIX, surged by 6.50% to 14.04, indicating increased market volatility. Technically, Nifty has been attempting to cross the 200-Day Simple Moving Average (200-DSMA) hurdle over the last three sessions but has been unable to sustain above it, forming a small red candle. The 200-DSMA is currently placed near 23,855, which will act as an immediate hurdle for the index. A sustainable move above 23,855 will push the index further higher to 24,000-24100 levels. On the downside, 23,500 serves as immediate support. In the short term, the index is expected to consolidate within the 23,500–23,850 range, with a breakout on either side determining its future trajectory.
Also Read: Nasdaq, Hang Seng beat Nifty by wide margin. Will it be India’s turn in 2025?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
