Nifty 50, Sensex today: What to expect from Indian stock market in trade on December 6 ahead of RBI policy
- Nifty 50, Sensex today: The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 24,780 level, a premium of nearly 15 points from the Nifty futures’ previous close.
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note and remain volatile on Friday ahead of the Reserve Bank of India’s (RBI) monetary policy announcement.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 24,780 level, a premium of nearly 15 points from the Nifty futures’ previous close.
The Reserve Bank of India’s (RBI) is set to announce its fifth monetary policy of FY25 later today. The RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) is expected to keep the benchmark repo rate unchanged after recent worrying inflation print and focus on liquidity measures following a dip in economic growth.
On Thursday, the Indian stock market benchmark indices ended a percent higher each, extending their winning streak for the fifth consecutive session.
The Sensex surged 809.53 points, or 1.00%, to close at 81,765.86, while the Nifty 50 settled 240.95 points, or 0.98%, higher at 24,708.40.
Nifty 50 formed a “High Wave Doji” candlestick pattern on the daily chart with an RSI of 66.
“Daily timeframe indicates that Nifty 50 has rallied in the last one week and closed above the 50 day SMA on Thursday. While the short term trend remains up, there could be short term corrections or consolidations as the Nifty has run up quite sharply in the last one week. Short term weakness could emerge once the immediate supports of 24,573 - 24,295 are broken,” said Subash Gangadharan, Senior Technical and Derivative Analyst at HDFC Securities.
Here’s what to expect from Nifty 50 and Bank Nifty today ahead of RBI policy:
Nifty OI Data
Nifty Open Interest (OI) data reveals the highest OI on the call side at the 24,800 and 25,000 strike prices, representing significant resistance levels. On the put side, OI concentration at the 24,500 and 24,300 strike prices identifies these as key support levels, said Hardik Matalia, Derivative Analyst at Choice Broking.
Nifty 50 Prediction
Nifty 50 index jumped 241 points on December 5 and closed above the 24,700 level.
“Lately, the Nifty has given an inverse head and shoulders pattern breakout on the daily chart, suggesting a confirmation of a bullish trend reversal. In the short term, the trend is likely to remain positive as long as it stays above 24,300. Traders may adopt a buy-on-dips strategy in the current market. On the higher side, the index could move towards 25,000 in the near term,” said Rupak De, Senior Technical Analyst, LKP Securities.
VLA Ambala, Co-Founder of Stock Market Today recommends that swing traders adopt a buy-on-dip strategy for the next few weeks.
“After analyzing the market, Nifty can hover for support around 24,550 and 24,480 and meet resistance near 24,940 and 25,100 in the next session,” Ambala said.
Dr. Praveen Dwarakanath, Vice President of Hedged.in noted that the Nifty 50 broke its resistance at the 24,500 level and moved up towards its next immediate resistance at the 24,850 level.
“At the start of the day, the index took support from its 50 EMA (Exponential Moving Average) at the 24,300 level and bounced, indicating bullishness to continue. The momentum indicators continue to show bullishness in the index. Immediate resistance for the index is at the 24,850 level and later at the 25,300 level,” said Dwarakanath.
Options writer’s data for the monthly expiry showed increased writing of the puts and short covering in ITM calls, indicating bullishness in the index, he added.
Bank Nifty Prediction
Bank Nifty index rallied 336.65 points, or 0.63%, to close Thursday’s session at 53,603.55, forming a bullish candlestick pattern.
“Bank Nifty closed above its immediate resistance at the 53,500 level, indicating further bullishness in the index. The next immediate resistance for the index is at 54,350 which is close to its all-time high level. The momentum indicators continue to show bullishness in the index. The index has closed on the upper side of the Bollinger band, likely to see the walk on the band, indicating further bullishness in the index,” said Dwarakanath.
Options writer’s data for the monthly expiry showed increased writing of the puts and short covering in ITM calls, indicating bullishness in the index, he added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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