Nifty prediction for Friday, Dec 26: Bullish bias intact; check chart, support, resistance levels

Nifty Prediction For Friday By Experts, Dec 26: Indian stock market indices Sensex and Nifty snapped their three-day winning streak on Wednesday (December 24). The NSE Nifty index edged lower by 35.05 points, or 0.13 per cent, to end a volatile session at 26,142.10. During the day, it hit a high of 26,236.40 and a low of 26,123. The 30-share BSE Sensex dropped by 116.14 points, or 0.14 per cent, to settle at 85,408.70.

Trading volumes remained subdued amid the year-end holiday-shortened week and mixed trends in global markets. The markets will remain closed tomorrow (Thursday, December 25) on account of Christmas.

In the sectoral indices, only Nifty Media, Realty and Metal closed in the green. The Nifty Bank index dropped 115.95 points or 0.20 per cent to finish at 59,183.60.

The broader market presented a mixed picture as Nifty Midcap 100 slipped 0.60 per cent, while the Nifty Smallcap index bucked the trend with a 0.28 per cent gain. India VIX, the fear gauge index, slipped 1.99 per cent to sit at 9.19.

Top Gainers, Losers Today

In the Nifty 50 pack, 19 stocks gained with Trent emerging as the top gainer, ending 2.26 per cent higher. Shriram Finance, Apollo Hospitals, Bajaj Auto, UltraTech Cement, Maruti, Coal India, Power Grid, Max Health, M&M and Nestle India were the other major gainers.

On the other hand, IndiGo, Adani Enterprises, Dr Reddy's, Wipro, TMPC, HDFC Life, Sun Pharma, HUL, Asian Paints, ONGC, RIL, Tata Steel, Tata Consumer Products, Bajaj Finserv, JW Infra, Cipla and SBI were the major laggards.

Vinod Nair, Head of Research, Geojit Investments, said that Indian stock market moved largely sideways, a trend mirrored across broader Asian markets. The RBI's recently announced liquidity initiatives, including OMOs and a USD/INR buy-sell swap, are expected to improve systemic liquidity and help stabilise currency volatility.

Nifty Support And Resistance

Nandish Shah, Deputy Vice President, HDFC Securities, said that the short term trend of Nifty remains positive, with bullish higher-top, higher-bottom structure on the daily chart. On the downside, the level of 26,000 is expected to act as a near-term support.

On the higher side, 26240 level is likely to act as an immediate resistance, followed by 26,330, he said.

Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C Mehta Investment Interrmediates, said that Nifty has formed a shooting star candle on the daily chart, reflecting selling pressure at higher levels. The next major hurdle for the index is placed in the 26,250–26,325 zone, while immediate support is seen near the 26,050 level, followed by 25,990, where the bullish gap support is placed.

"Nifty is likely to consolidate in the 25,990–26,325 band in the short term, and traders are advised to maintain a stock-specific approach," he said.

A small negative candle was formed on the daily chart of Nifty with long upper shadow. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the current price action signals a breather in the market after a stellar rise from the lows.

"The present lackluster movement in the market could be short lived and Nifty could bounce back sharply from the lows in the near term. Nifty has immediate support placed at 26000 and resistance around 26300," the analyst said.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)