By Vineet Kumar 
Trade Setup for December 9: Nifty Poised for Action After a 600-Point Rally
The stock market closed another strong week, with the Nifty and Sensex both gaining over 2%, marking their biggest weekly surge in six months. This was the third consecutive week of gains, signaling strong market momentum.
After a volatile session on December 5 due to F&O expiry, the Nifty ended a five-day winning streak on December 6, closing 30 points lower. The session saw a narrow 130-point trading range, with the RBI maintaining its repo rate while cutting the cash reserve ratio (CRR), influencing market sentiment.
Broader markets continued to outperform as the Nifty Midcap100 and Smallcap100 indices rose 0.5% and 0.8%, respectively.
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Sectoral and Stock-Specific Highlights
Auto stocks emerged as the week’s top performers.
Bajaj Auto and Tata Motors surged 2-3% on Friday.
Maruti Suzuki gained 2%, announcing a price hike of up to 4% effective January 2025 due to rising input costs.
In the primary market, a busy week lies ahead with three major IPOs—Vishal Mega Mart, Mobikwik, and five SME offerings—ready to open for subscription.
Globally, investors are focused on critical data releases like Eurozone GDP, US Nonfarm Payrolls, and unemployment figures, which could impact market trends.
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FII Inflows Spark Optimism
Foreign Institutional Investors (FIIs) continued their buying spree, injecting over ₹14,000 crore into equities during the first three sessions of December. This strong inflow has bolstered market sentiment, keeping the bulls in control.
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Nifty 50: What’s Next?
The Nifty’s near-term trend remains positive, according to Nagaraj Shetti of HDFC Securities.
The index has moved above the 24,400-24,500 resistance zone, indicating potential upside in the coming weeks.
The next upside targets are set at 25,000-25,200, with immediate support at 24,525.
LKP Securities’ Rupak De foresees a short-term target of 25,500, emphasizing buying on dips to capitalize on minor pullbacks.
However, Amol Athawale of Kotak Securities advises caution due to temporary overbought conditions. He expects range-bound trading, with key support at 24,500/81,200 and 24,300/80,700, while resistance is pegged at 24,900/82,200 and 25,050/82,500.
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Bank Nifty: Levels to Watch
The Nifty Bank index ended the week at 53,509.50, slipping 0.18%.
On the upside, the index needs to decisively breach 53,900 to regain bullish momentum.
A break below 53,200 could pull it toward 52,800, which acts as a crucial support level.
Om Mehra of SAMCO Securities suggests that a sustained move above 53,900 could trigger fresh buying, while the broader trend remains intact as long as 52,800 holds.
Athawale adds that the Bank Nifty may rally up to 54,000-54,300 as long as it stays above 52,500.
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Key Takeaways
The Nifty’s bullish trend remains intact, with dips offering opportunities for entry.
FII inflows and global economic data will drive near-term momentum.
For traders, key levels to monitor are 24,525 (support) and 25,500 (resistance) for the Nifty and 52,800 (support) and 54,300 (resistance) for Bank Nifty.
Stay tuned to TradingThought.com for real-time updates and analysis.