Indian stock market is likely to open flat today, December 11, with mixed global cues that will influence the sentiment. The benchmark indices, Sensex and Nifty 50, will be expected to remain range-bound as they are after Tuesday's muted session.
Market Summary
The domestic equity market saw a choppy trading session on December 10 and ended almost flat.
- Gained 1.59 points to finish at 81,510.05.
- Lost 8.95 points (0.04%) to finish at 24,610.05.
Nifty 50 formed a small red candle with a long lower shadow on its daily charts. According to some technical analysts, it will resemble a bullish hammer and indicate trend reversal.
Now, check out the market's pre-opening cues today.
Gift Nifty, a leading indicator of Nifty's opening trends, was trading at 24,690, reflecting a premium of 7 points over the previous close. This suggests a flat to muted start for the session.
Nifty 50: Key Levels to Watch
Technical Indicators
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said,
The bullish hammer-like pattern indicates a higher bottom formation, which is likely to see an upside bounce. The ongoing consolidation phase is expected to end soon, supporting a near-term uptrend."
- Support: 24,300 (high put open interest).
- Resistance: 24,700–24,750 (a zone of significant call writing).
Rupak De, Senior Technical Analyst at LKP Securities, added,
The Nifty 50 is trading sideways between 24,500 and 24,650. A break below 24,470 could trigger a 200-250 point correction, while sustained trading above 24,700 would open room for gains.
Dr. Praveen Dwarakanath, Vice President of Hedged. in, said,
"Momentum indicators show bullishness and intraday dips are being recovered quickly, signalling underlying strength. A decisive move beyond the resistance at 24,850 is required to sustain upward momentum.
Bank Nifty: Performance and Outlook
The Bank Nifty index ended 169.95 points higher (0.32%) at 53,577.70 on Tuesday, forming a bullish candlestick pattern on daily charts.
Important levels in Bank Nifty:
- Support: 52,800 – This zone is seeing active buying of dips.
- Resistance: 53,800 – Breaking above this may lead to further gains.
Dr. Dwarakanath said,
"Bank Nifty has been consolidating in a tight range of 1,000 points over the last four days. Momentum indicators are still bullish, and it is likely to break above 53,800 if global cues remain supportive," said Mandar Bhojane, Research Analyst at Choice Broking, while highlighting significant activity in the derivatives segment:
- Call Open Interest: Concentrated at 24,800 and 25,000, indicating strong resistance.
- Put Open Interest: Highest at 24,300, indicating strong support.
Options data shows that Nifty 50 will move in a range-bound manner and the 24,700 level has seen significant action from both call and put writers.
Conclusion
The Indian stock market is expected to stay in consolidation mode with cautious optimism. The day's trade will be dictated by the key levels on both Nifty 50 and Bank Nifty, as traders look for directional clarity.
Disclaimer: This report is based on insights from market analysts and research firms. Investors should consult qualified financial advisors before making investment decisions.
