Market Closed With Excellent Recovery: Nifty Prediction for Tomorrow
Nifty Prediction for Tomorrow
Market Overview: Mixed Fortunes on December 19
Smallcap Index Hits Record High, Midcap Index Declines
On December 19, the Indian stock market witnessed a day of mixed fortunes, marked by both record highs and marginal losses across different indices.
The smallcap index achieved a new milestone, reaching 42,544.95, a record high, before closing with marginal gains. In contrast, the BSE midcap index saw a decline of 0.3 percent, reflecting the divergent trends in the broader market.
Benchmark Indices Close in Green After Volatile Trading Session
The benchmark indices, Nifty and Sensex, experienced a volatile trading session but ultimately closed in positive territory.
Nifty closed at 21,450, while Sensex concluded at 71,437.19, showing an increase of 122.10 points or 0.17 percent.
Nifty gained 34.40 points or 0.16 percent, closing at 21,453.10. This positive closure indicates resilience in the face of intraday fluctuations.
Top Gainers and Losers in Nifty
Among the Nifty stocks, notable gainers included Coal India, Nestle India, Tata Consumer Products, NTPC, and Cipla.
On the flip side, SBI Life Insurance, Hero MotoCorp, Adani Ports, Wipro, and Adani Enterprises were the top losers, showcasing the diverse performance of different sectors within the Nifty index.
Sectoral Indices Display Mixed Trends
Sectoral indices displayed mixed trends, with some sectors witnessing gains while others faced declines. Metal, Pharma, Oil & Gas, Power, and FMCG sectors experienced gains ranging from 0.3 to 1 percent, reflecting strength in these segments.
However, Auto, Capital Goods, Realty, and IT sectors faced declines ranging from 0.3 to 0.8 percent, signaling challenges in these areas.
Performance of BSE Smallcap and Midcap Indices
The BSE smallcap index reached a new high of 42,544.95, reflecting the strength in smaller companies. However, it closed with modest gains, suggesting a more tempered performance in the smallcap segment.
Conversely, the BSE midcap index declined by 0.3 percent, indicating a challenging day for mid-sized companies.
Insights from Market Experts
Aditya Gaggar, Director of Progressive Shares
Aditya Gaggar, Director of Progressive Shares, noted the day’s volatility. He highlighted a strong early recovery led by heavyweight Reliance and observed momentum in PSU banks and pharma counters during the middle of the trading session.
Despite Nifty hitting a new intraday high of 21,505.05, it closed at 21,453.10, up 34.45 points. Gaggar’s insights provide a snapshot of the dynamic factors influencing the market throughout the day.
Sectoral Performance and Top Performers
Power and FMCG Lead Sectoral Gains
On the sectoral front, Power gained 1.58 percent, showcasing strength in the power sector. FMCG emerged as the best performer with a gain of 1.41 percent at the end of the trading session, underlining the resilience of consumer goods companies.
In contrast, profit booking pressure was observed in IT and Auto sectors, suggesting challenges in these segments.
Broader Market Performance
Mid and Smallcap Indices Witness Weakness
The broader market witnessed weak performance, with midcap and smallcap indices falling by 0.38 percent and 0.12 percent, respectively.
This indicates a challenging day for companies beyond the large-cap segment and emphasizes the nuanced dynamics within the market.
Technical Analysis: Nifty Forms Long-Legged DOJI Candlestick Pattern
Nifty 50’s Technical Analysis
Nifty 50 index formed a long-legged DOJI candlestick pattern on December 19, indicating indecision between bullish and bearish trends.
This technical pattern suggests that market participants were uncertain about the next directional move. Analysts anticipate Nifty to consolidate in the range of 21,330-21,500, emphasizing the importance of this technical level.
Bullish Outlook and Rotational Buying Strategy
Ajit Mishra of Religare Broking
Ajit Mishra of Religare Broking expressed confidence in the bullish outlook. He highlighted the trend of buying on every fall in the index, confirming the positive sentiment.
Mishra emphasized the performance of defensive stocks like FMCG and Pharma, but also stressed the need for participation from rate-sensitive stocks to drive the next leg of the rally.
Additionally, he mentioned the expectation of rotational buying in the market, suggesting a strategy of identifying stocks with rotational buying for trading opportunities.
Market Strategy and Potential Bullish Trend
Mandar Bhojne of Choice Broking
Mandar Bhojne of Choice Broking provided insights into the market strategy and potential trends. He highlighted that on December 19, Sensex-Nifty closed with slight gains in a volatile session.
Nifty made a new all-time high at 21,505 intraday, forming a hammer candlestick pattern on the daily chart, indicating a potential bullish trend.
Bhojne suggested that if Nifty crosses the level of 21,500, there is a possibility of it moving up to 21,650 and 21,750 in the coming days.
Nifty’s Expected Consolidation and Support-Resistance Levels
Nifty’s Expected Consolidation Range
Nifty is expected to consolidate in the range of 21,230 to 21,500, according to Bhojne. On the downside, there is support in the zone of 21,300-20,200, providing a buffer against potential declines.
Meanwhile, the resistance is located in the zone of 21,500-21,700. Overall, the market trend is positive, and Bhojne suggests that the current decline should be viewed as a buying opportunity.
Bank Nifty’s Consolidation and Buying Opportunities
Bank Nifty’s Trend and Support-Resistance Levels
Bank Nifty is also consolidating in the range of 47,600 to 48,200, according to Bhojne. On the downside, there is support at 47,500.
As long as this support remains intact, Bank Nifty is expected to move towards 48,200. The overall trend of Bank Nifty is positive. In such a situation, Bhojne recommends viewing the fall towards 47,700-47,600 as a buying opportunity.
Final Remarks: Positive Market Outlook with Tactical Opportunities
In conclusion, December 19th showcased a dynamic day in the Indian stock market, marked by record highs, marginal gains, and sector-specific challenges.
While the smallcap index reached a new pinnacle, the midcap index faced declines. The benchmark indices, Nifty and Sensex, closed positively after a volatile session.
Market experts provided insights into the day’s events, highlighting factors such as sectoral performance, top gainers and losers, and technical patterns like the long-legged DOJI on Nifty’s chart.
The bullish outlook was reinforced, with analysts suggesting a strategy of identifying stocks with rotational buying for trading opportunities.
The technical analysis pointed to potential consolidation in Nifty within a specific range, with support and resistance levels providing guidance for market participants.
Similarly, Bank Nifty’s trend and support-resistance levels were outlined, emphasizing buying opportunities during declines.
Overall, the market trend was deemed positive, and the day’s challenges were viewed as opportunities for tactical investments.
As market participants navigate the complexities of the current economic landscape, strategic decisions based on thorough analysis and insights from experts become crucial for success.
