Nifty 50, Sensex today: What to expect from Indian stock market in trade on December 31 | Stock Market News

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday tracking weak global market cues.

The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 23,655 level, a discount of nearly 160 points from the Nifty futures’ previous close.

On Monday, the domestic equity market indices snapped a two-day winning run and ended over half a percent lower each.

The Sensex declined 450.94 points, or 0.57%, to close at 78,248.13, while the Nifty 50 settled 168.50 points, or 0.71%, lower at 23,644.90.

Nifty 50 formed a reasonable negative candle on the daily chart with upper shadow.

“Technically, this market action indicates an attempt of downside breakout of the range movement. This is not a good sign and signals more weakness ahead. The crucial support of 200-day EMA (Exponential Moving Average) has been violated again at 23,700 levels amidst choppy movement and the opening downside gap of 19 December remains unfilled after seven sessions of its formation. This said unfilled opening down gap could be considered as a bearish run-away gap, which is normally formed in the middle of a down trend. Hence, more decline could be in store” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short-term trend of Nifty 50 is down and the market is expected to slide down to 23,500 – 23,400 levels in the short term.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

Nifty Open Interest (OI) data indicates the highest OI on the call side at the 23,800 and 24,000 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,500 and 23,200 strike prices, marking these as key support levels, said Hardik Matalia, Derivative Analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 slipped into weakness on December 30 and closed the day lower by 168 points.

“Nifty 50 index oscillated within a broad range but struggled to break either the high (24,066) or low (23,537) of the daily candle formed on December 20, 2024, reflecting indecision. Nifty’s bullish momentum slowed as hourly candles fell below previous swing lows, disrupting the higher-high formation and putting the uptrend on hold,” said Om Mehra, Technical Analyst, SAMCO Securities.

The daily RSI moved closer to the oversold zone, cautioning against chasing short-term pullbacks. Adding to the uncertainty, the India VIX, the fear gauge, surged 5.51% and settled at 13.97, indicating heightened nervousness. A reduction in trading volumes raises the probability of larger intraday swings in the next session, he added.

VLA Ambala, Co-Founder of Stock Market Today, noted that the Nifty 50 and Bank Nifty indices have formed a red candlestick pattern on the daily chart.

“Based on this, Nifty is expected to find support around 23,530 and 23,340 and notice resistance between 23,670 and 23,790. Similarly, Bank Nifty can expect support of around 50,440 and 49,960 with resistance at 50,780 and 50,950,” Ambala said.

Bank Nifty Prediction

Bank Nifty index ended 358.55 points, or 0.7%, lower at 50,952.75 on Monday, forming a bearish daily candle with a prominent upper wick, indicating selling pressure at higher levels.

“Nifty Bank attempted to breach the previous resistance at 52,000 but failed. However the index remains above the 200 DMA, positioned at 50,500, but a break below this level could accelerate the decline toward 50,000. The daily RSI has dropped below 40, hinting the momentum has weakened. The daily Bollinger Bands are widening, and the index is poised for heightened volatility,” Mehra said.

A move below 50,500 would likely confirm a short-term bearish trend, while a move higher would require the index to close above 51,500, he added.

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