Indian Stock Market Today: Nifty 50, Sensex Outlook for December 8

Market discussions suggest that Indian bourses are poised for a flat to slightly positive start today with global cues offering mixed hints to Sentiments.

The SGX Nifty futures market, however, provides for a muted start. The contract traded around 8,176.20, down 40 points from the still low close of the previous batch.

The markets staged a decent close after the carnival of an RBI policy. The universe gushed out by 454 points, or 0.52%, to 87,712. Following suit was the Nifty 50 marking a positive print of 152 points, or 0.59%, to 26,186.

The Tuesday outlook and benchmarks for Sensex, Nifty 50, and Bank Nifty are as follows.

Sensex: View

Sensex made a rev-hammer candlestick pattern (rejections on the downside with respectably higher closes) on the daily chart and is comfortably above the 20 SMA, pointing to underlying bullish momentum. On the weekly chart, a Piercing Line–larger body–candlestick signals a buying interest at low levels.

Key Levels:

• Support: 85,000 – 84,700
• Resistance – 85,900, an expected breakout could drag it upward to 86,500.

"If Lip smacks 84,700, potential further needs would arise and the subsequent base around 84,200 - 84,000," Amol Athawale, Vice President, Technical Researcher, Kotak Securities.

Market Analyst with Stock Markets, Mayank Jain, said:

"Major resistance stands around 86,000 – 86,200, which is where heavy-call OI is situated. Support stands around 85,000, which is supported by the highest put OI."

Nifty 50 Open Interest & Technical Outlook

Nifty Put OI's aggregated at 18.62 crores of contracts against 15.65 crore calls, suggesting a strong base defense around the 26,000 level.

"Strong Put writing in 25,900–26,100 is essential for the market, whereas new Calls also being active at 26,500–26,700 is an alarming downside. A high PCR close to 0.80 also signals bias to the favorable side," said Ponmudi R, Managing Director, Enrich Money.

Technical levels:

• Resistance 26,250 – 26,300, further 26,500...
• Support 25,950 – 26,000...

During the last week, Nifty 50 underwent a fall that stood temporarily at 0.08%, before finally jumping back above 26,100 from where the uptrend resumed. Analysts foresee the index as capable of approaching the 26,500 mark in the short run, with minimal volatility pegged at 10.50-luckily for the bulls.

Bank Nifty Technical Outlook

Bank Nifty closed a good 488 points higher (0.82%) at 59,777 on Friday and attracted buying momentum at the weekly low.

Key Support & Resistance:

• Immediate Support: 59,000- 59,200, fortified further by the fresh writing of Put
• Resistance: 60,000- 60,400, with the maximum call OI at 60,000

Bank Nifty is well-positioned to fuel its uptrend. Any decisive close over 60,000 will lead the way toward the 60,600 level; views were shared by Mr. Ravi Singh, Chief Research Officer at Master Capital Services Ltd.

Sudeep Shah, Head of Technical & Derivatives Research at SBI Securities, put the dynamic support near the 21-day EMA (~58,978) as favoring dip buying, whereas rising above the 55-day EMA points to the continuation of the uptrend.

Key Points for Trades

• Sensex: Support 85,000-84,700, Resistance 85,900-86,500
• Nifty 50: Support 25,950-26,000, Resistance 26,250-26,500
• Bank Nifty: Support 59,000-59,200, Resistance 60,000-60,600

In brief, the overall market trend is bullish, with the technical indicators flashing immediate upside in weeks ahead. But the confluence of support and resistance zones provides a safety net for the positional traders.