Technical Outlook: Nifty and Bank Nifty to Stay Rangebound Amid Fed Meeting Uncertainty
Nifty 50: Immediate Support and Resistance Levels
The Nifty 50 experienced mild profit booking on December 16, consolidating after a nearly 1% rally in the previous session. The index closed at 24,668, down by 100 points, forming a small bearish candlestick pattern on the daily charts. This suggests some caution ahead of the Federal Reserve meeting on December 19.
Despite the dip, the index managed to stay above its 10-day EMA, which is a positive sign. However, further profit booking could push the Nifty below 24,600, making it the immediate support level, with 24,500 acting as the next crucial support. On the upside, a rebound could face hurdles at 24,800, with 25,000 being the key resistance level, according to market experts.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed that while the Nifty is in an uptrend on long-term charts, further consolidation could create a buy-on-dip opportunity. He suggests closely monitoring the 24,550 level for support and 24,800 for resistance.
Weekly Options Analysis
Maximum Call OI: 25,000 strike, followed by 25,500 and 25,400 strikes.
Maximum Call Writing: 24,700 strike, followed by 24,500 and 25,200 strikes.
Maximum Put OI: 24,000 strike, followed by 24,500 and 23,900 strikes.
Maximum Put Writing: 24,000 strike, followed by 24,200 and 23,900 strikes.
This data suggests that Nifty is likely to remain within the 24,000–25,000 range in the near term, with immediate resistance at 24,700 and support at 24,500.
Bank Nifty: Volatility Persists Amid Mixed Sentiment
The Bank Nifty ended flat with a negative bias, closing at 53,581, down by 2.5 points. The index formed a small bullish candle with upper and lower shadows, indicating volatility. Sustaining above all key moving averages, the index faced immediate resistance at 53,800, with potential to test 54,000 and 54,250 if momentum builds.
Chandan Taparia, Senior Vice President at Motilal Oswal Financial Services, emphasized the importance of holding above the 53,300 level for an upward move. Key support levels are at 53,300 and 53,000.
India VIX: Fear Index Surges After Six-Day Fall
India VIX rose sharply by 7.41%, ending at 14.02, after snapping its six-day losing streak. This spike reflects heightened caution among traders ahead of the Federal Reserve’s policy meeting.
Conclusion
The Nifty 50 and Bank Nifty are likely to remain rangebound in the coming sessions, influenced by global cues and the Fed meeting outcome. Traders should focus on key support and resistance levels while keeping an eye on volatility. A breakout above critical levels could set the stage for further upside, while a breach below support zones may trigger additional profit booking.
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