Market Closing View for 17th Dec by Ponmudi R, CEO, Enrich Money

Equity markets traded in a narrow range with a mild bearish bias, as the rupee’s sharp intraday recovery after opening at a record low, proved short-lived, weighing on investor sentiment. After starting the session at an all-time low of 91.07 against the US dollar, the local currency briefly strengthened toward 89.96 before slipping back above the 90 mark amid continued foreign outflows. Market sentiment remained subdued through the session, further pressured by rising US bond yields ahead of key consumer inflation data and the absence of fresh domestic triggers. 

Technical Views

Nifty 50 remains in a corrective consolidation phase after failing to sustain above the 25,800 base. The index is trading below its 20-day EMA while holding marginally above the 50-day EMA, indicating a clear loss of short-term momentum without a structural breakdown. As long as Nifty remains below the 25,900–26,000 resistance zone, upside attempts are likely to attract selling pressure. The 25,700–25,750 zone is the key near-term support, and a daily close below 25,700 will confirm continuation of the correction, opening downside potential toward 25,550–25,400. Only a sustained close above 26,050–26,100 will negate the current corrective bias and re-establish bullish momentum. RSI remains in the 45–47 range, reflecting weakening momentum but no oversold conditions.

Bank Nifty continues to consolidate after the recent up-move, with short-term momentum cooling while the broader trend remains intact. The index is holding above both the 50-day and 200-day moving averages, confirming that the current phase is consolidation rather than trend reversal. The immediate range is defined between 58,700 and 59,500. A decisive break below 58,700 would tilt the structure bearish and expose 58,400–58,200 on the downside, while only a sustained close above 59,500 is likely to revive upside momentum toward the 60,000 zone. Until a breakout or breakdown occurs, Bank Nifty is expected to remain range-bound with a neutral to slightly negative bias. Ponmudi R, CEO, Enrich Money- https://enrichmoney.in

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