The Nifty rises above all significant moving approaches 24,800; After two months, the Bank Nifty sees a breakout.

NiftyTrader • December 3, 2024

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According to the options data, the 24,800-25,000 region is projected to provide significant short-term resistance for the Nifty 50, with support at 24,000.

Nifty Technical View

The Nifty 50 climbed over the 50-day and 100-day Exponential Moving Averages (EMAs), surpassing all important moving averages and closing solidly above the critical barrier of 24,350 on December 3. This represented the third straight session of an upward rise in the December series. The index also broke out of a downward-sloping trendline and an Inverted Head and Shoulders pattern, all of which indicated a bullish bias. The next goal to watch is 24,800, which corresponds to the 50% Fibonacci retracement from the record high to the November low, followed by the 25,000-25,200 range. However, analysts estimate that support is approximately 24,300.

The Nifty 50 began 90 points higher at 24,368, exactly over the crucial level of 24,350, and stayed in positive territory throughout the day. The index rose steadily throughout the day, reaching a high of 24,481 before ending at 24,457 on higher-than-average volume. It gained 182 points on the day, bringing the three-day total up to over 400 points from last Thursday’s low.

On the daily charts, the index created a bullish candlestick pattern with a tiny lower shadow, with support provided by a falling trendline. Meanwhile, the Relative Strength Index (RSI) was at 55.7, showing a bullish tilt.

This market activity indicates that the bullish chart pattern, typified by higher tops and bottoms, is likely to continue from here, perhaps resulting in more upside for the market.

Bank Nifty

Additionally, the Bank Nifty did well, outperforming the benchmark Nifty 50 by 587 points, or 1.13 percent, to reach 52,696. It saw a two-month consolidation before a clear breakout. After a strong start, the index broke beyond 52,600 and traded just above the 61.8 percent Fibonacci retracement (from the September record high to the November low), forming a bullish candlestick pattern on the daily charts.

Both PSU and private banks participated in the banking industry’s widespread buying. According to Rajesh Bhosale, Technical Analyst at Angel One, the Bank Nifty’s range breakthrough, which saw it cross 52,500 for the first time in two months, is projected to fuel the outperformance going forward.

Gainers & Losers: The most volatile stocks

The benchmark Sensex jumped 597 points on Tuesday, continuing its winning run for the third straight session. This increase was fueled by purchasing in blue-chip companies and encouraging global market signals. The 30-share Sensex closed at 80,845.75, up 597.67 points, or 0.74 percent. It reached 80,949.10 intraday after rising as much as 701.02 points, or 0.87 percent.

Following an impressive stock market debut on Friday, November 29, Enviro Infra Engineers shares ended Tuesday’s trading session approximately 16 percent higher.

Ola Electric shares ended 5 percent higher in December 3 trade.

After being trapped in the upper circuit due to strong volumes, NTPC Green Energy shares reached an all-time high on December 3.

Varun Beverages Following a report that claimed the GST rate on aerated beverages would be raised from the current 28% to 35%, the stock ended the trading session 1.67 percent down.

CMP for Zen Technologies: Rs 1,813.90 Following a block deal for Rs 386.1 crore that the company witnessed in the early hours of December 3, the shares dropped 5%.