Market Update: Nifty and Bank Nifty Analysis Date 18.12.2024

Selling Pressure across the sectors

The Indian stock market witnessed a sharp decline on Wednesday , 18 December, with both key indices closing in red. The Nifty 50 closed 0.56% lower, down by 137 points, to 24,198.85, while the Sensex was down 502 points to 80182. The Bank Nifty, the banking sectoral index, fell 1.32%, tracking broader market weakness.

The sectoral pressure was led by Power and metal sectors, which pulled the markets down, while banking stocks declined sharply by 1.32%. The top losers on Nifty were TataMotors (-3%) PowerGrid (-2.50%),BEL (-2.50%) JswSteel (-2.00%), NTPC (-2.10%) AdaniPorts (-1.77%). The top gainers were Trent(2.50%),Drreddy(2.22%), Cipla(1.50%), and Wipro(1.20%).

Indian stock market’s outlook:

A key level to watch on the downside is 24,010, and the market has also witnessed a negative crossover of the 21 EMA and 50 EMA (Exponential Moving Averages). Upside resistance is expected around 24,400–24,450. Nifty has lost almost 580 points in the last three days, which is highly concerning for the bulls.

Today marks the Nifty weekly expiry, and as per options data, the maximum open interest (OI) buildup is at 24,000 on the put side, serving as a key support area. On the call side, 24,300–24,400 shows major OI buildups, indicating strong resistance for the next few days. The market sentiment may also be influenced by the outcome of the US Fed meeting, which is expected to deliver a 25 basis point (bps) rate cut.

Caution is advised as bearish signals continue to dominate the market in the short term.