Nifty 50, Sensex today: What to expect from the Indian stock market on December 20

Nifty 50, Sensex today: The Indian stock market benchmarks- the Sensex and the Nifty 50- may see a negative opening on Friday, December 20, as indicated by trends on Gift Nifty. Around 7:25 AM, the Gift Nifty was at 23,938, a discount of 24 points from the Nifty futures’ previous close.

Weak global cues after the US Fed’s revised outlook for rate cuts in 2025 could weigh on domestic market sentiment. Experts, however, believe the medium-term outlook of the market remains positive and in days to come, the market’s focus will shift to Q3 earnings.

Indian stock market suffered a significant loss of one per cent in the previous session, extending its losing streak into the fourth consecutive session. The Nifty 50 closed 1.02 per cent lower at 23,951.70.

According to Ajit Mishra, SVP of research at Religare Broking, the next key support for the Nifty 50 is at the 200-day exponential moving average (DEMA) around the 23,700 level.

“A break below this could lead to further downside for the index. Despite the weakness, oversold conditions and resilience in select pockets present buying opportunities. Traders are advised to align their positions carefully, emphasising prudent stock selection,” said Mishra.

Nifty 50 prediction

The Nifty 50 has been falling for the last four consecutive sessions. Due to oversold conditions, there are expectations that the market may see a pullback rally.

“The short-term market sentiment remains on the weak side. However, we could see a quick pullback rally from the current levels due to temporary oversold conditions,” said Shrikant Chouhan, the head of equity research at Kotak Securities.

“For traders, the key support zones are 23,870 and the 200-day SMA (simple moving average) or 23,825. If the index remains above these levels, we could see a quick pullback rally towards 24,150-24,200. If it falls below the 200-day SMA or 23,825, it could slip to 23,750-23,725,” said Chouhan.

As per Rupak De, Senior Technical Analyst at LKP Securities, the Nifty 50 broke below the neckline of the inverse head and shoulders pattern in the previous session. On the lower end, it found support at the low of the right shoulder.

“Sentiment remains weak following a hawkish comment from the Fed, which could continue to weigh on market sentiment in the short term. Support is placed at 23,850, below which further correction appears likely. Resistance is seen at 24,200,” said De.

Bank Nifty prediction

The Nifty Bank index closed 1.08 per cent lower at 51,575.70 on Thursday.

Kunal Shah, a senior technical and derivative research analyst at Mirae Asset Sharekhan, said the Bank Nifty index remains in a sell-on-rise mode with an immediate hurdle at 52,000. If it breaches yesterday’s low, it can slide further towards the 200-day moving average, placed at 50,482.

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