Nifty 50 and Sensex: What to Expect in Trading on December 17

After two consecutive sessions of losses, the Sensex and Nifty 50 are anticipated to start slightly higher on Wednesday, December 17.

Gift Nifty trends suggest a muted opening for the Indian benchmark index. The Gift Nifty traded near the 25,937 level, a gain of 21.5 points, or 0.08%, compared to the previous close of Nifty futures.

On December 16, the Indian stock market experienced a sharp decline, continuing a two-day losing streak. A record-low rupee value and weak global signals significantly dampened market sentiment. The Sensex fell by 534 points, a 0.63% drop, closing at 84,679.86. The Nifty 50 also slipped, decreasing by 167 points, or 0.64%, to finish at 25,860.10. The broader market mirrored this downturn, with the BSE Midcap index decreasing by 0.78% and the Smallcap index falling 0.69%.

In a single session, investor wealth diminished by over ₹3 lakh crore. The total market capitalization of BSE-listed companies decreased from ₹471 lakh crore to ₹467.6 lakh crore.

Here’s a look at what analysts expect from the Sensex, Nifty 50, and Bank Nifty today:

**Sensex Prediction**

Kotak Securities' Head of Equity Research, Shrikant Chouhan, suggests that the Sensex may continue to decline, despite attempts to rebound on Tuesday. He noted that while the intraday market shows weakness, a further selloff could occur if the index falls below 84,300, potentially leading to a retest of the 84,000–83,800 range. According to Chouhan, the immediate resistance level for day traders is 84,800. A sustained trade above this level could trigger a rise toward 85,200–85,400.

**Nifty OI Data**

Choice Equity Broking's Technical & Derivative Analyst, Amruta Shinde, observed that volatility remained low, with the India VIX decreasing by 1.83 percent to 10.06. This reflects ongoing market complacency and expectations for trading within a limited range. Derivatives data indicates significant call writing at the 25,900 strike price, while strong put open interest at 25,800 suggests a narrow trading band in the short term. Shinde believes that a sustained close above 26,200 is necessary to revitalize bullish momentum; failure to achieve this may prolong the current consolidation in upcoming sessions.

**Nifty 50 Prediction**

The Nifty's corrective phase was extended on Tuesday as global and domestic market sentiment weakened, prompting caution from analysts regarding the near-term outlook. Technical indicators suggest potential further downside risks, with several experts highlighting key support and resistance levels for traders to monitor.

SAMCO Securities' Technical Research Analyst, Om Mehra, pointed out that the index falling below the 9-EMA near 26,000 and the middle Bollinger Band signals a shift toward short-term weakness. The bearish candle during the session underscored persistent intraday selling pressure, while momentum indicators deteriorated. The RSI cooled to 47 and moved below the neutral line without positive divergence, and the MACD drifted further into negative territory with a slightly expanding histogram. According to Mehra, the next support zone is at 25,720. A decisive close below this level could expose 25,650–25,600, where the Supertrend is positioned. Resistance is now at 26,000–26,050, and only a sustained close above this band would restore bullish momentum. He believes the market setup has transitioned from a buy-on-dips approach to a more range-bound and selective strategy.

Religare Broking’s SVP – Research, Ajit Mishra, stated that the broader structure remains one of consolidation but cautioned that currency pressure could widen the trading range and potentially pull the index below its recent swing low near 25,700. Mishra emphasized that the 26,000–26,100 zone remains a critical hurdle. Given the current environment, he recommends a stock-specific and hedged trading approach due to the prevailing volatility.

LKP Securities' Senior Technical Analyst, Rupak De, noted that bears maintained control, with the Nifty consistently remaining below the 200-SMA on the hourly chart throughout the day. The breach of support at 25,870 intensified selling pressure. He anticipates that the index may move toward 25,700 or lower, while the 25,950–26,000 zone is likely to act as immediate resistance.

**Bank Nifty Prediction**

The Bank Nifty continued to experience pressure on Tuesday, opening with a gap-down and closing bearish at 59,035. A red candle on the daily chart highlights ongoing weakness in the banking index.

Asit C. Mehta Investment Intermediates Ltd.'s AVP – Technical and Derivative Research, Hrishikesh Yedve, stated that the index is nearing a key support area. He observed that the Bank Nifty formed a red candle on the daily timeframe, reflecting prevailing weakness. The immediate support zone lies at 58,800–58,900, and a firm break below 58,800 could extend the decline toward 58,500–58,000. Resistance is at 60,000–60,120, and short-term traders should secure profits on any upward movements.

LKP Securities' Technical Analyst, Vatsal Bhuva, noted that the index closed below its 10-day and 20-day SMAs, reinforcing short-term caution. The RSI is creating lower tops, indicating weakening momentum and a lack of buying strength. He finds the chart structure to be slightly weak, with crucial support at 58,800. A close below this level could pull the index to the 50-day SMA near 58,300–58,200, while resistance remains at 59,300 and 59,500. According to Bhuva, a sustained bullish outlook is only justified if the index closes above 59,500.

_(Disclaimer: The views and recommendations provided in this article are those of individual analysts or broking companies and do not represent the views of Mint. Investors are advised to consult with certified experts before making investment decisions.)_