Indian benchmark indices ended on a positive note on Friday (Friday, December 27) aided by buying trends in auto, FMCG and bank stocks. While the S&P BSE Sensex settled at 78,699.07, up by 226.59 points or 0.29%, the broader Nifty closed at 23,813.40, higher by 63.20 points or 0.27%.
Commenting on the day’s action, expert Satish Chandra Aluri of Lemonn Markets Desk said benchmark indices failed to capitalise on the gap-up opening while managing to stay positive and closed above the key 23,800 level in a potential bullish signal.
“We continue to believe that markets are entering a new macro regime in 2025, with rising uncertainty on inflation and growth leading to a higher for longer interest rates in the US. Earnings season along with Budget expectations and Trump’s inauguration will be the next triggers for market direction in the new year,” he said.
What should traders do? Here’s what analysts said:
Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates Technically, Nifty managed to cross the 200-Day Simple Moving Average (200-DSMA) on the daily chart but failed to sustain above it, forming a Doji candle. On the weekly chart, the index has formed an inside bar candlestick pattern, indicating strong demand near the 23,500-23,540 zone. The 200-DSMA is placed around 23,860, which will act as an immediate hurdle for Nifty. A sustainable move above this level could drive the index towards 24,000–24,100. On the downside, 23,500 remains a key support. In the immediate term, Nifty is expected to consolidate between 23,500 and 23,900, with a breakout on either side defining its next move.
Dhupesh Dhameja, SAMCO Securities
The Nifty index continues to exhibit a constrained sideways-to-bullish trajectory. Its narrow price movement, accompanied by repeated indecisive candlestick formations, underscores a lack of clear direction. However, the absence of pronounced weakness and consistent recovery attempts from lower levels provide solace to bulls. The 23,900–24,000 zone, fortified by heavy call writing, poses a significant hurdle. Meanwhile, the 200-DEMA and the pivotal 23,700–23,600 band, bolstered by notable put writing, form a sturdy foundation for the bulls. A breakout above 24,000 could spark a short-covering rally, driving the index toward 24,500.
However, until such a breakout materialises, a “buy on dips” strategy remains prudent. A breakdown below 23,500, on the other hand, could amplify bearish momentum, dragging the index toward the 23,150–23,000 zone, where robust put writing offers additional support.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)