Bank Nifty Prediction Today – Dec 20, 2024: Wait for Clarity Before Taking Fresh Trades

As of December 20, 2024, Bank Nifty futures are showing a cautious market sentiment, with key levels to watch at 51,200 and 51,500. Investors and traders are advised to wait for clearer signals before making any new trades.

Today's trading began with Bank Nifty opening lower at 51,401, down from the previous closing of 51,576. The market is currently hovering around 51,225, reflecting a decline of 0.7%. In this session, only AU Small Finance Bank has shown gains, rising by 0.7%, while other index components are mostly facing losses. Among the notable losers, Axis Bank and IDFC First Bank have dropped by 2.3% and 1.5%, respectively.

The performance of sector indices further highlights the current downturn; Nifty PSU Bank is down nearly 0.8%, and the Nifty Private Bank index has seen a decrease of 0.9%. This trend indicates that private banks are slightly underperforming their public sector counterparts.

Bank Nifty Futures Overview

In line with the underlying market, the December Bank Nifty futures also opened lower at 51,621 compared to the previous close of 51,750. Currently, it is trading around 51,380, showing a decline of 0.7%.

A minor recovery has been observed from the low of 51,200, which serves as a crucial support level. For this recovery to continue, the futures must surpass the resistance level at 51,500. A successful breakout above this level could lead to a rally towards 52,000.

Conversely, if the market turns bearish and the futures drop below the support at 51,200, it would indicate a potential new downtrend, possibly leading the contract down to 50,400.

Currently, the next significant movement in prices hinges on which level—51,200 or 51,500—is breached first. This situation has created a wait-and-see approach for traders.

Trading Strategy

Given the current market conditions, it is advisable to remain on the sidelines for the moment. Traders should consider the following strategies:

If Bank Nifty futures fall below the support level of 51,200, it may be a signal to initiate a short position with a stop-loss set at 51,550 and aim for a target of 50,500.

On the other hand, if the futures break through the resistance at 51,500, a long position can be considered, with a stop-loss at 51,250 and a target of 52,000.

In summary, the key support levels are 51,200 and 50,400, while resistance levels are at 51,500 and 52,000. Traders should act with caution and wait for confirmation before entering trades.

Banking, Stocks, Trading