Nifty prediction today – Dec 21, 2023: Index attempting to recover

Nifty 50 opened today’s session with a gap-down at 21,033.95 as against Wednesday’s close of 21,150.15. The index is now hovering around 21,080, down 0.3 per cent.

The advance/decline ratio of Nifty 50 shows a bearish inclination as it stands at 18/32. Interestingly though, the mid- and small-cap indices are in the green.

Among the sectors, Nifty Media is the top gainer by advancing 2.5 per cent whereas Nifty Private Bank is the top loser, down nearly 1 per cent.

The bearish bias is substantiated by the equity markets across Asia. Among the major indices, Nikkei 225 (33,125), ASX 200 (7,510), Hang Seng (16,580) and KOSPI (2,590) are down between 0.3 and 1.6 per cent.

Nifty 50 futures

The December futures contract of Nifty 50 opened today’s session lower at 21,100 versus yesterday’s close of 21,217. It has now recovered to 21,200.

Nifty futures has a strong support at 21,120. This seemed to have arrested the fall and the contract is now attempting a recovery.

From the current level, the nearest resistance is at 21,320. A rally past this level can lift Nifty futures to 21,400.

But if the contract falls from here, support levels below 21,120 can be spotted at 21,050 and 20,950. Yet, as it stands a fall below 21,120 is less likely.

Trading strategy

Buy Nifty futures now at 21,200 as it has bounced off a support. Add longs in case the contract dips to 21,150. Place stop-loss at 21,080. Book profits at 21,320.

Risk-averse traders can avoid this trade and refrain from taking fresh positions today.

Supports: 21,120 and 21,050

Resistance: 21,320 and 21,400