By Vineet Kumar 
Technical View: Nifty Sustains Momentum Above Key Averages, Eyes 24,350 Breakout
The Nifty 50 displayed resilience by sustaining above its short-term moving averages (10- and 20-day EMAs) and rebounding smartly from recent losses. On December 2, the index closed 145 points higher at 24,276, marking a 0.6% gain. The session formed a bullish candlestick pattern with a lower shadow on the daily chart, signaling buying interest at lower levels. Analysts believe that Nifty is poised to challenge the critical resistance zone of 24,350-24,400, with the support range firmly placed at 24,000-23,900.
Key Levels to Watch
Upside Resistance: A decisive break above 24,350-24,400 could trigger a sharp rally, with the next targets at 24,700-24,900, according to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Support Zone: Immediate support lies at 24,100, while the broader support range is pegged at 24,000-23,900.
During the session, Nifty opened on a positive note at 24,141 and witnessed intraday volatility before strengthening in the afternoon. The late-hour surge pushed the index to an intraday high of 24,302, suggesting sustained bullish momentum.
Options Data Insights
Weekly options data indicates a resistance zone at 24,500-24,800, backed by significant Call open interest at the 25,000 and 24,800 strikes. On the downside, strong Put open interest at 24,000 reinforces this level as a key support.
Momentum Indicators
RSI: Maintaining an upward bias, signaling positive momentum.
MACD: Confirming the ongoing bullish trend.
—
Bank Nifty: Consolidation Continues Amid Resistance
The Bank Nifty closed 53 points higher at 52,109, underperforming the benchmark Nifty 50. The index remains above key moving averages but is grappling with strong resistance at 52,500-52,600. On the downside, the 21-day EMA near 51,590 acts as immediate support.
Candlestick Insight: The session formed a Doji-like pattern, indicating indecision. A strong breakout above 52,600 is needed for further gains.
Momentum Indicators: Both RSI and MACD are in positive territory, suggesting a bullish undertone.
Expert Take
Hrishikesh Yedve, AVP – Technical and Derivatives Research at Asit C Mehta Investment Intermediates, advises traders to book profits on rallies and wait for a sustained breakout above 52,600 before initiating fresh positions.
Trading Strategy
Nifty: Watch for a breakout above 24,350 to initiate long positions targeting 24,700-24,900. Maintain a stop-loss at 24,100.
Bank Nifty: Focus on the 52,600 resistance. A breakout could open doors to higher levels, while dips toward 51,600-51,590 may present buying opportunities.
For more actionable insights and market updates, visit TradingThought.