Indian Stock Market Outlook for December 26, 2024: Nifty 50, Sensex to Open Higher

 

Nifty 50 formed a small red candle on the daily chart beside the similar positive candle

The Indian stock market’s benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday, December 26, 2024, driven by positive signals from Asian markets. However, many global equity markets remain closed today due to holidays.

The trends on Gift Nifty indicate a positive start for the Indian market, with Gift Nifty trading at around the 23,800 level, a premium of approximately 30 points over the Nifty futures’ previous close. However, there is some caution as trends also suggest a modest start with Gift Nifty trading around the 19,440 level, reflecting a discount of about 30 points from the Nifty futures’ last close.

On December 25, 2024, both Indian and major global markets were shut for the Christmas holiday. In the last trading session on December 24, 2024, the domestic equity markets ended in a choppy session with marginal losses. The Sensex fell 0.09%, closing at 78,472.87, while the Nifty 50 ended 25.80 points (0.11%) lower at 23,727.65.

Technical Analysis & Nifty 50 Outlook

The Nifty 50 formed a small red candle on the daily chart, following a positive candle on Monday. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, this pattern signals caution, suggesting a potential trend reversal after a decline. A sustainable move above the 23,900 level could confirm a bullish reversal pattern. However, the short-term trend remains weak, and no significant bottom reversal signals have appeared yet. Immediate resistance is at 23,900 - 24,000, while support is placed around 23,500.

Nifty 50 Open Interest Data

Open interest data for Nifty indicates key levels for traders. There is significant call open interest at the 24,000 and 24,200 levels, indicating resistance, while the maximum put open interest at 23,500 suggests strong support. This points to a range-bound market, with clarity on direction expected only after a breakout or breakdown from the current levels, according to Mandar Bhojane, Research Analyst at Choice Broking.

Market Trend and Prediction

The market continues to consolidate, with traders advised to adopt a cautious stance until a clear trend emerges. Rupak De, Senior Technical Analyst at LKP Securities, mentioned that the Nifty failed to show a follow-through move on December 24 and closed the day lower. The Nifty remained range-bound and closed below its 200-DMA for the first time in three days, signaling a short-term bearish trend. The RSI is in a bearish crossover, further reinforcing the negative outlook. On the downside, support is seen in the 23,500 - 23,400 zone, while resistance lies at 23,860.

In summary, the Indian stock market is expected to open higher, but caution is advised as the Nifty 50 remains in a consolidation phase, with traders awaiting a clearer trend in the coming sessions