Nifty prediction for tomorrow, Monday: Santa rally next week? Long bull candle on chart; check support, resistance

Nifty Prediction For Monday (Next Week), Dec 22: Equity benchmark indices Sensex and Nifty 50 today (December 19) snapped their four-day of losing streak in line with a rally in gains in global markets as a lower-than-expected US consumer price inflation data for November reinforced expectations of further interest rate cuts by the Federal Reserve. Fresh foreign fund inflows also drove the equity markets higher.

The 50-share NSE Nifty climbed 150.85 points or 0.58 per cent to end at 25,966.40. During the day, it surged 177.80 points to 25,993.35. The 30-share BSE Sensex jumped 447.55 points or 0.53 per cent to settle at 84,929.36.

All the sectoral indices closed in the green. The Nifty Auto, Realty and Healthcare indices gained more than 1 per cent each. The Nifty Bank index added 156.35 points or 0.27 per cent to finish the session at 59,069.20. In the broader markets, Nifty Midcap 100 and Nifty Smallcap 100 climbed more than 1 per cent each.

India VIX closed at 9.52, indicating subdued near-term volatility.

On weekly basis, the Nifty index fell by 80.55 points or 0.30 per cent. The BSE benchmark declined by 338.3 points or 0.39 per cent.

Top Gainers, Losers Today

In the Nifty 50 pack, 49 stocks gained while 9 declined. Shriram Finance was top mover, finishing 4.10 per cent higher after the company's board approved the sale of a 20 per cent stake to the Japan-based MUFG Bank for Rs 39,618 crore. Max Health, BEL, TMPV and Power Grid surged in the range of 2 to 3 per cent. Bajaj Auto, Eicher Motors, Jio Financial Services, Apollo Hospitals, Reliance Industries, HDFC Life, L&T, Cipla, Asian Paints, Tata Consumer Products, Bajaj Finserv, Trent, Nestle India, Infosys and HUL were the other major gainers.

HCL Tech declined the most, followed by Hindalco, Kotak Mahindra Bank, JSW Steel, ICICI Bank, Coal India and Airtel.

Vinod Nair, Head of Research, Geojit Investments, said that global equities rallied as US CPI came below the estimates, reinforcing expectations of a softer Fed stance. Oil prices continued to soften on oversupply concerns and subdued growth outlook.

"While sentiment remains constructive, near-term volatility may persist amid uncertainty over trade deal timelines and upcoming macro data releases," he said.

Nifty Support And Resistance For Monday

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking, said that Nifty has formed a Doji candle on the weekly chart, indicating indecision. During the week, the index found support at its 50-DMA and recovered to close above the 25,900 level.

Nifty has immediate hurdle placed near the 21-DMA at 26,000. A sustained move above 26,000 may trigger a short covering rally towards 26,200, said the analyst.

"Given the recent rebound and a breakout above the falling trend line, a Santa rally in the coming week looks possible, which may propel Nifty towards the 26,200 mark. On the downside, Nifty has key support is positioned around 25,700," he said.

Ajit Mishra, SVP, Research, Religare Broking, said that Nifty has once again reclaimed its short-term moving average, the 20-DEMA, around the 25,950 level. "It is essential for Nifty to sustain above 25,950 to move toward the 26,050–26,200 range," the expert said.

According to Nandish Shah, Deputy Vice President, HDFC Securities, a sustained move above 26,058 in Nifty is needed to confirm a bullish higher-top, higher-bottom structure on the daily chart. This will pave the way for a potential resumption of the primary uptrend.

Nifty will then extend the rally the next resistance of 26,202 and 26,330. On the downside, 25,726 is a near-term support, the expert said.

Nifty has formed a long bull candle on the daily chart with minor upper and lower shadow. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said that the current price action indicates a breakout of down sloping trend line at 25900.

The underlying trend of Nifty is positive, the expert said, adding that a sustainable move above the key overhead resistance of 26000-26050 will open the next upside target of around 26300 levels in the near term. Nifty has supports in the range of 25800 to 25700.

(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.)