Over the past week, the Indian stock market saw a steady upward movement, with the BSE Sensex climbing 0.84% to close at 78,699 and the Nifty50 rising by around 1% to 23,813. The India VIX, a key measure of market volatility, saw a significant drop of 12%, reflecting a positive shift in investor sentiment. Various global and domestic economic indicators are expected to impact the market in the coming days. Key data includes US Pending Home Sales (November), UK S&P Global Manufacturing PMI, US Fed Balance Sheet, India's Infrastructure Output, and more.
The Nifty index continues to show a constrained sideways-to-bullish trend, with a narrow price movement and repeated indecisive candlestick formations suggesting a lack of clear market direction. Despite this, the absence of significant weakness and consistent recovery attempts from lower levels have supported bullish sentiment. The 23,900-24,000 zone, reinforced by heavy call writing, remains a tough resistance, while the 23,700-23,600 range, backed by strong put writing, offers support for the bulls. If Nifty breaks above 24,000, a short-covering rally could drive the index toward 24,500. However, until a breakout occurs, a "buy on dips" strategy remains prudent. A breakdown below 23,500 could intensify bearish momentum, pushing the index towards the 23,150-23,000 zone.
Nifty Bank has been demonstrating a similar sideways-to-bullish movement, with its price action constrained and showing no significant weakness. The 51,700-51,800 resistance zone, bolstered by heavy call writing, remains a challenge for the bulls. However, support is strong at the 51,000 level, reinforced by notable put writing. A breakout above 51,800 could spark a short-covering rally and push the index toward 52,500. Until such a breakout occurs, a "buy on dips" strategy remains the preferred approach. A breach below 51,000, however, could trigger stronger bearish momentum, pulling the index to the 50,000-50,300 range, where significant put writing offers additional support.
