On Friday, December 19, Indian Stock Markets will likely be in a positive mood, ending a session decline. Thanks to positive global market indicators and easing inflation concerns for investors in India and worldwide, investors' confidence is increasing. Across the Asia-Pacific region, other Asian stock markets followed a positive Wall Street close, increasing investor confidence.
As of December 19th, the Indian Gift Nifty was showing strength, trading 60 points above the previous day's close of the Nifty future, indicating that the indian markets will open higher today.
The December 18th trading session showed that both the Sensex and Nifty 50 Index remained virtually unchanged (i.e., flat) with a downward tendency. The Sensex dropped by 78 Points (-0.09%) to close at 84481.8,1 while the Nifty 50 Index fell 3 Points (-0.01%) to close at 25815.55.
This does show that there were Gains in the BSE Mid-Cap Index +0.05% and within the Small-Cap Index -0.28%. It shows that market participants made sound stock-buying decisions based on research.
Continuing Concerns of a Weak Rupee, Foreign Fund outflows instead of Inflows to India, and Uncertainty Surrounding India/US Trade Talks continue to limit the upside momentum for Indian Markets.
Sensex Trend is Still in a Consolidation Phase. The Next Level of Immediate Resistance appears to be at the 84800 Resistance.
If Market participants continue to stay above the 84800 Resistance level, we should see a Short Run-Up in Sensex Quickly Toward The 85000-85300 Levels. Conversely, if we break below 84,300 and 84,100, then we will see a larger move down to 83800 and possibly down to 83700 levels.
The Nifty 50 is hovering near key technical levels, suggesting that a sharp move could take place.
The 25,700-25,750 zone remains a crucial support zone, reinforced by strong open interest. A breakdown below this range may invite fresh shorts and deepen the correction.
On the upside, resistance is seen at 25,900, followed by 26,000, aligned with key moving averages.
Options data indicate aggressive call writing at 25,900, while the India VIX at 9.70 reflects subdued volatility and expectations consolidation in the near term.
Bank Nifty formed an inverted hammer candle on the daily chart. If the index holds the inverted hammer low of 58,712, short-term relief may emerge, but a break below 58,712 could extend weakness toward the 58,450-58,000 levels.
The index faces immediate support at 58,700; a break below could push it toward 58,350-58,000.
Resistance is placed near 59,150, where repeated selling has emerged.
Investor focus today will remain on global central bank decisions, including meetings of the Bank of Japan, the ECB, and the Bank of England, along with the rupee-dollar movement and FII flows.
Notably, FIIs turned net buyers, purchasing equities worth Rs. 1,172 crore, providing some relief after weeks of selling.
On the sectoral front, IT stocks emerged as the top performers, rising over 1%, aided by selective buying and favorable currency movements.
Realty stocks also edged higher by 0.3%. In contrast, auto, media, pharma, oil & gas, and capital goods stocks remained under pressure, declining between 0.3% and 1%.
Also Read: US Stock Market Today: Wall Street Rebounds as Cooling Inflation Revives Rate-Cut Expectations
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