Nifty Prediction for December 26, 2024: Range Bound with a Bearish Bias

On December 26, 2024, the Nifty 50 index is exhibiting stable trading conditions, continuing its pattern of being range bound. The current trading range is established between 23,650 and 24,100. Investors are paying close attention as the index shows a negative bias, indicating a likelihood of breaking lower from this established range.

Current Market Conditions

The Nifty 50 December Futures is currently priced at 23,723. Throughout today's trading, the index has faced difficulties gaining traction to break above the key resistance at 23,900, reaching a maximum of 23,854 earlier before dipping slightly. At present, it trades at 23,715, reflecting a minor decrease of 0.04%.

Range Analysis

This week has seen the Nifty maintain a consistent and stable range, hovering between 23,650 and 23,900. Investors are advised to monitor closely for any breakout movement from this range to establish a clearer trend for future trading. A move above 23,900 could potentially propel the index up to 24,100. Conversely, a break below 23,650 might lead the index towards levels like 23,500, which could trigger further declines.

Futures Insights

The current Nifty 50 December Futures price remained under pressure, showing a decline of 0.2%. The contract has struggled to exceed the 23,900 mark during several attempts this week, supporting the perceived negative bias in the market. Should the index fall below the critical support level of 23,650, it could lead to further downturns towards 23,550 and potentially lower levels.

Trading Strategy

Based on the current market conditions, the suggested trading strategy is to consider short positions only if the index drops below 23,650. It is wise to maintain a stop-loss at 23,680 initially. As the contract approaches 23,605, traders should adapt by trailing the stop-loss down to 23,625, and further adjusting it to 23,590 if the price reaches 23,570. The exit point for any short positions should be targeted at 23,550, given its established support.

Key Support and Resistance Levels

Support levels to watch are 23,650 and 23,550. The key resistance areas are marked at 23,900 and 24,100. Numerical vigilance in these ranges will be critical for traders to navigate the market effectively.

Nifty, Trading, Market