Indian stock markets, including the benchmark indices Sensex and Nifty 50, are expected to have a flat opening on December 30, 2024. This follows a weak performance in global markets. The Gift Nifty, which reflects the performance of Nifty futures, was trading at around the 23,990 level, showing a slight discount of nearly 2 points from the Nifty futures' previous close. This suggests that the market could face a tepid start.
On December 29, domestic equity indices ended on a positive note, with Nifty 50 closing above the 23,800 mark. Sensex gained 0.29%, closing at 78,699.07, while Nifty 50 rose by 63.20 points, or 0.27%, to close at 23,813.40. Despite this upward movement, technical analysis indicates a lack of strength in the market. Nifty 50 formed a small green candle on the daily chart with an upper shadow, signaling an attempt at an upside breakout from a small range movement. However, this pattern is not considered a strong signal for sustained growth.
Additionally, the opening downside gap from December 19 still remains unfilled, which could be seen as a bearish runaway gap. Such gaps usually form during a downtrend and suggest that the market could face further selling pressure. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, pointed out that the gap might indicate continued weakness, and traders should remain cautious as the market could struggle to maintain the recent upward momentum.
