The Indian stock markets continued to consolidate on Thursday, with the benchmark Nifty 50 index ending the session at 23,750.20, a modest gain of 0.1%. The S&P BSE Sensex remained largely unchanged, closing flat at 78,472.48. The Bank Nifty, however, saw a slight decline, finishing at 51,170.70, down by 0.12%. Among sectoral indices, the FMCG sector experienced losses, while the auto, pharma, and realty sectors posted gains.
For traders, the immediate breakout level for Nifty is 23,850, which corresponds to the 200-day Simple Moving Average (SMA). A move above this level could see the market rising to the 23,950-24,000 range. On the flip side, if Nifty drops below 23,650, it could retest the 23,550-23,500 levels. These levels will be closely watched by market participants in the coming sessions, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
In the case of Bank Nifty, the 200-Day Simple Moving Average (200-DSMA) around 50,560 serves as a strong support level, while the 100-Day Exponential Moving Average (100-DEMA) at 51,635 acts as resistance, according to Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates.
A combination of thin holiday trading volumes and weak global cues kept investors on edge during the day. As the year draws to a close, market attention is shifting towards the US Federal Reserve’s decisions on interest rates and potential changes in tariff policies under Donald Trump. These factors are expected to influence market sentiment in the early part of 2025. With uncertainty still lingering, investors are bracing for potential market shifts as the new year approaches, as noted by Vikram Kasat, Head of Advisory at PL Capital - Prabhudas Lilladher.
Looking ahead, global market dynamics and domestic factors will likely continue to influence trading patterns, with volatility expected in the short term. Investors are advised to stay vigilant and track key technical levels closely, as the market's direction remains uncertain as we transition into the new year.
