Market Movement and Key Resistance Levels
The Nifty index showed signs of volatility leading into the final trading sessions of December 2024. Despite an initial upward momentum on December 24, the index closed below 23,800, ending the day at 23,727.65, down 0.11%. Analysts observed significant selling pressure near the 23,900 mark, a level that has repeatedly acted as a strong resistance due to its alignment with the 200-day moving average (DMA).
Chart patterns indicate a bearish trend with a shooting star candlestick formation, signaling hesitation in the recent uptrend. According to experts, a decisive move above 23,900–24,000 could trigger positive momentum. However, a breach below 23,535 might intensify the bearish outlook, pulling the index closer to 23,300.
Sectoral performance revealed losses in metal stocks, which reversed gains from earlier sessions, while auto stocks posted mixed results. Tata Group stocks, however, outperformed, surging up to 13% amid reports of a potential ₹15,000 crore IPO for Tata Capital.
F&O Trends and Bank Nifty Analysis
Futures and Options (F&O) data further emphasized a cautious outlook for the Nifty. Open interest on Call options for strikes between 23,750 and 24,100 indicated robust resistance, while Put options for strikes of 23,450 and 23,700 suggested moderate support. The Put-Call Ratio rose to 0.94 from 0.84, reflecting a slight shift in sentiment.
The Nifty Bank index remained range-bound between 51,382 and 51,137, consolidating ahead of expiry. The daily RSI highlighted oversold conditions, pointing to the possibility of a short-term recovery. Analysts noted that breaking above 51,800 could confirm upward momentum, while a fall below 50,750 may signal further weakness.
Futures rollovers were robust, with Nifty Bank series adding 5% open interest, and rollovers reaching 68%, compared to Nifty 50’s 60%. Expiry-day dynamics could see heightened activity, with Bandhan Bank and Granules India out of the F&O ban, while RBL Bank remains restricted.
Stocks to Watch and Corporate Developments
Several key stocks and corporate announcements are set to influence the market. Nalco signed a lease deed for its Utkal coal blocks, expected to enhance production capacity to 4 MTPA. Bharat Forge will invest €39 million in its European arm, while Panacea Biotec secured a UNICEF contract worth $14.95 million for vaccine supply.
BPCL emerged as the lowest bidder for a 150 MW solar project, projected to generate ₹100 crore annually, while Ramky Infrastructure received a ₹215 crore project from Hyderabad’s water board. Apollo Healthco announced its acquisition of Searchlight Health’s software business for ₹67.5 crore, and Ceigall India signed a ₹981 crore agreement with NHAI.
As markets gear up for December 26, investors remain watchful of resistance levels and corporate triggers, with the final expiry of 2024 set to shape Nifty’s year-end trajectory.
