Trade set-up for December 12: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a strong note on Friday, December 12 tracking overall positive global market cues, and after Dow and S&P 500 ended at record highs overnight following the rate cut by the US Federal Reserve.
The trends on Gift Nifty also indicate a robust start for the Indian benchmark index for the second straight session. The Gift Nifty was trading near its record high at 26,134 level, up 108 points or 0.4% from the Nifty futures’ previous close.
Meanwhile, in the previous session, the Indian stock market snapped its three-day losing run to end with healthy gains on Thursday, December 11, after the US Federal Reserve cut interest rates by 25 basis points and signalled one more rate cut next year. The Sensex ended 427 points higher at 84,818.13, gaining 0.51%, while the Nifty 50 advanced 141 points to close at 25,898.55, up 0.55%.
Investors saw their wealth jump by nearly ₹2.6 lakh crore in a single session, as the total market capitalisation of BSE-listed companies increased to ₹466.6 lakh crore from ₹464 lakh crore in the previous session.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the Sensex showed strong resilience on Thursday after an early intraday decline. He observed that the Sensex found support near 84,150 before staging a sharp recovery, rallying more than 700 points from the day’s low. Chouhan highlighted that the index has also formed a bullish candle on the daily charts, a pattern that typically signals further upside momentum.
According to him, “84,500 and 84,150 would act as key support zones, and as long as the market stays above these levels, the uptrend formation is likely to continue.” On the upside, he said 85,000 remains the immediate resistance level for the bulls. A decisive breakout above 85,000 could propel the index toward the 85,300-85,500 range. However, Chouhan cautioned that a fall below 84,150 may weaken the ongoing uptrend and increase vulnerability on the downside.
Nifty OI Data
As per a report by SAMCO Securities, the derivatives landscape indicates a cautious market tone. Call writers have aggressively added fresh positions at at-the-money and nearby strikes, reinforcing strong overhead supply. In contrast, put writers have partially unwound their positions and shifted to lower strikes, hinting at expectations of continued consolidation.
A sizable build-up of 1.11 crore call contracts at the 26,000 strike firmly establishes it as a major resistance zone. On the other hand, nearly 95.47 lakh put contracts at the 25,700 strike confirm a solid support base. The Put-Call Ratio (PCR) has risen to 0.84 from 0.54, illustrating heightened caution and defensive positioning, with sellers still holding aggressive stances, it said.
Nifty 50 Prediction
Nifty saw a mild rebound on Thursday after three sessions of weakness, though technical signals still point to the possibility of further correction. Analysts outlined key support and resistance levels likely to guide the index’s next move.
Religare Broking said Nifty appears to have completed a five-wave impulsive pattern, with the recent breakdown below its rising trendline suggesting the start of a corrective phase. The index is finding it difficult to sustain near 26,000, while momentum indicators are weakening, with the RSI forming lower highs and dipping below its average. The brokerage noted that as long as Nifty stays below 26,050-26,100, the bias remains mildly negative. Support is placed at 25,550-25,500, and a breach could push the index toward 25,250. A reversal, it added, would require a decisive close above 26,100.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, highlighted that Nifty staged a relief rally from lower levels, ending 140 points higher after early declines. Sharp buying near 25,700 helped the index recover and close near the day’s high. Positive divergence on intraday charts and the daily candle structure point to a potential short-term upside reversal. Shetti said, “A decisive move above 25,950-26,000 could open the next upside towards 26,250-26,300,” while pegging 25,750 as immediate support.
Offering a cautious view, Rupak De, Senior Technical Analyst at LKP Securities, noted that despite the rebound, the broader setup remains weak. “Nifty remained firm after an initial decline, but on the upside it faced resistance at the 21EMA, reflecting an underlying bearish structure,” he said. De sees 25,700 as near-term support, warning that a break below this level could give bears control. Unless Nifty moves above 26,000, he expects caution to dominate sentiment.
Bank Nifty Prediction
Bank Nifty traded in a tight range on Thursday, showing early signs of buying at lower levels but lacking a clear breakout. Analysts said the index is hovering near crucial technical zones, and the next move will determine short-term direction.
Hrishikesh Yedve, AVP – Technical and Derivative Research at Asit C. Mehta Investment Intermediates, noted that Bank Nifty formed a bullish candle, signalling renewed interest at lower levels. He said, “on the downside, 58,800-58,900 will act as an immediate support zone. On the upside, 60,000-60,120 will act as a stiff resistance.” Yedve advised short-term traders to buy near support and book profits near resistance.
Vatsal Bhuva, Technical Analyst at LKP Securities, offered a more cautious view, pointing out that Thursday’s candle suggested sideways consolidation with a mild bearish tone. “Although the index has reclaimed its 20-day EMA, a crucial hurdle remains at the 10-day EMA,” he said. Bhuva pegged support at 58,800 and resistance at 59,350, adding that a close above 59,500 would confirm bullish momentum, while a fall below 58,800 could trigger selling toward 58,200, where the 50-day EMA lies.