By Vineet Kumar 
Technical Analysis: Nifty and Bank Nifty Outlook
Nifty 50: Key Levels and Market Trends
The Nifty 50 showcased a remarkable recovery on December 13, bouncing back by over 600 points from the day’s low to close at 24,768, up 220 points. The index surpassed its immediate hurdles at 24,700-24,750, forming a bullish candlestick pattern on the daily chart, indicative of strong buying interest at lower levels.
On the weekly chart, the Nifty extended its uptrend for the fourth consecutive week, gaining 0.4%. It also formed an Inside Bar pattern, making the previous week’s high of 24,858 and low of 24,009 crucial levels for the coming week. A breakout above 24,858 could push the index toward the 25,000-25,100 resistance zone, with a potential move to 25,125, as per Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan.
On the downside, 24,500-24,400 remains a critical support zone. Any breach of this range could trigger further corrections.
Derivative Insights:
Maximum open interest (OI) on the Call side is seen at the 25,000 strike, followed by 25,500.
On the Put side, 24,500 holds the maximum OI, indicating strong support.
The Put-Call Ratio (PCR) for weekly options improved from 0.70 to 1.04, reflecting bullish sentiment.
Market Volatility:
The India VIX, a key indicator of market sentiment, dropped for the sixth straight session to a two-month low at 13.05, offering further comfort for bulls.
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Bank Nifty: Positive Momentum Continues
The Bank Nifty also staged a strong recovery, rising 367 points to close at 53,584. The index rebounded nearly 1,400 points from its day’s low, forming a bullish candlestick with a long lower shadow on the daily chart, signaling resilience at lower levels.
On a weekly basis, the Bank Nifty gained 0.14%, forming an Inside Bar pattern. The previous week’s high of 53,888 and low of 51,694 will act as crucial levels for the next move.
Amol Athawale, VP-Technical Research at Kotak Securities, highlighted that the short-term trend for Bank Nifty remains bullish. Key levels to watch:
Support: 53,000 and 52,800.
Resistance: 54,000-54,300.
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Conclusion:
The market’s positive momentum is likely to continue in the short term, supported by declining volatility and bullish derivative data. Traders should focus on the 24,700 level for Nifty and 53,000 for Bank Nifty as key pivot points. Staying above these levels could pave the way for further gains, while a breach may invite some consolidation.
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