On December 19th, Indian stock markets were heavily impacted by negative global cues, with broad-based selling pressure affecting major indices. The Nifty 50 index declined by 1.02%, closing at 23,951.70 and slipping below the psychological 24,000 mark. This sharp decline followed the US Federal Reserve's hawkish stance, which raised concerns about potential interest rate hikes and a slowdown in rate cuts next year. The S&P BSE Sensex also ended 1.20% lower at 79,218.05.
The Nifty Bank index, which is a key barometer for the banking sector, saw a drop of 1.08%, closing at 51,575.70. The IT and metals sectors were among the prominent losers, contributing to the overall market weakness. While the broader markets showed some resilience with smaller declines of 0.3%-0.5%, the pressure was felt across most sectors.
Technical experts suggest that Nifty’s next key support lies around the 200-day exponential moving average (DEMA), which is at the 23,700 level. A breach of this level could lead to further downside for the index. Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, indicated that Nifty may experience further weakness if it falls below the 23,700 mark.
In the Bank Nifty, selling pressure continues, and the index remains in a "sell-on-rise" mode. Kunal Shah, Senior Technical Analyst at Mirae Asset Sharekhan, pointed out that if Bank Nifty breaches its previous day’s low, it could slide further towards its 200-day moving average at 50,482.
Traders are advised to watch these key levels closely for potential price action in the coming days, while market sentiment will likely remain cautious, given the global uncertainty and the Federal Reserve's policy outlook.
