As we look ahead to 16th December 2024, market participants are gearing up for a pivotal trading session. With global cues and domestic factors shaping investor sentiment, the focus remains on how indices like the Nifty 50 will perform after recent fluctuations. Following a positive close in the previous session, optimism may carry forward, but volatility cannot be ruled out given ongoing economic developments and sector-specific trends. Traders and investors will closely watch key levels and market triggers to navigate the day, making it an important session to assess the near-term direction of the markets.
What happed in Stock Market on 14 December 2024
On 13 December, the Nifty 50 experienced a day of contrasting market sentiments, starting off bearish but ending on a strong bullish note. In the first half, the index struggled, reaching a low of 24,187 as selling pressure dominated. However, the second half brought a significant turnaround, driven by strong short covering and renewed buying interest. This upward momentum pushed the Nifty to a high of 24,800 before settling at 24,768.30, marking a positive close for the day. The recovery in the second half reflected a shift in investor sentiment, likely influenced by optimistic cues or a stabilizing market environment. Despite the initial dip, the market’s resilience showcased its ability to attract buyers at lower levels, offering a sense of relief to traders and investors alike.
Nifty 50 Support and resistance zone
The outlook for Nifty 50 on 16th December 2024 suggests a cautious yet optimistic sentiment, with key levels acting as critical indicators of market direction. If the index sustains above 24,650, the market is expected to remain bullish, offering buying opportunities for traders. It is advisable to consider purchasing call options if Nifty 50 retraces to 24,650 or 24,500, as these levels could attract significant buying interest. However, if the index falls below the 24,500–24,550 range, it may signal bearish momentum, although a deeper decline is unlikely unless Foreign Institutional Investors (FIIs) turn net sellers.
The market’s resilience, bolstered by the short covering witnessed in the previous session, suggests limited downside risk unless broader selling pressure emerges. Traders should watch for the critical resistance level of 25,500—if the index fails to close above this level on 16th December, the market could turn bearish in the days ahead. A close below 25,500 might pave the way for further downside, with potential testing of support levels at 24,300 and 24,100. Overall, while the immediate outlook leans bullish, staying vigilant around these key levels will be essential for navigating the session effectively.
Overall stock market outlook
The market outlook for 16th December 2024 suggests a cautiously optimistic sentiment for Nifty 50. The index is likely to remain bullish if it stays above 24,650, making this a key level for traders. Buying call options is recommended if Nifty 50 tests 24,650 or 24,500. However, a bearish trend may emerge if the index drops below 24,500–24,550, though significant downside is unlikely unless FIIs turn net sellers.
The market’s recovery from short covering in the previous session signals resilience, with limited downside risk unless the index fails to close above 25,500. If Nifty 50 closes below 25,500 on 16th December, it could indicate a bearish shift, potentially testing support levels at 24,300 and 24,100. Traders should focus on these critical levels to gauge the market’s direction.