Nifty and Bank Nifty Outlook for the week, 9 to 13 December 2024

Published 07-12-2024, 07:30 pm
NSEI
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NSEBANK
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Indian Benchmark Indices traded flat for Friday after showing some volatility in the morning where Nifty closed the day with a loss of 30.60 points or 0.12% and Bank Nifty closed the day with a loss of 90.05 points or 0.18 percent.

On the weekly timeframe, Nifty rallied over 2% this week, rising over 500 points towards the 24,850 mark, indicating a bullish momentum while the Bank Nifty rallied over 2.5% this week, rising over 1400 points and crossing the 53,500 level which is again a bullish indication for the coming week.

Anyway, this week is positive for the Indian stock market, as it recovers some of the losses that occurred in the last 2 months, and it's very likely that this bull run will continue in the next week too led by a positive global outlook.

Nifty Prediction for 9 to 13 December 2024

On the daily timeframe, Nifty forms an Inside Bar, leaving the market indecisive for Monday, but as the current trend is positive - it is expected that the market will continue to rise following the current bullish trend.

On the chart, Nifty is forming a rising wedge pattern, but yet the pattern is not completely formed, hence Nifty is expected to follow the current trend and rise towards the 25,000 breaking the previous day’s high of 24,857 level.

While on the Weekly chart, Nifty forms a big bullish candle taking support at the 24,000 level and rising near the July month high, crossing above all the short-term EMAs - indicating a bullish trend.

Currently, there is a pattern forming called a rising wedge pattern on the daily chart, so there is a possibility of a little bit of correction but first, wait for the price action to get clarity about the coming days.

For the next week, Nifty is likely to trade in a broader range of 25,200 and 24,700 but a break on either side will decide the further move, In my opinion, Nifty is most likely to break in the lower direction following rising wedge pattern.


Bank Nifty Prediction for 9 to 13 December 2024

Bank Nifty is bullish compared to Nifty and other benchmark Indices, as it rises near 1500 points this week, after the breakout of the range and the Ascending Triangle pattern.

On the weekly time frame, Bank Nifty broke out of a range with a big bullish candlestick while taking support at the 15DEMA indicating a further rise in the index.

Also, the RBI’s reduction in the Cash Reserve Ratio (CRR) from 4.5% to 4% will inject liquidity into the banking system, providing banks with more funds to lend, which may support economic activity (source).

For the next week, Bank Nifty is likely to trade higher following the range breakout towards the new high of 55,000 mark. But if it falls or the pattern breakout is false, then we have support at the 53,000 and then 52,000 mark.

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