December 6 Projections for SENSEX, NIFTY and BANK NIFTY. Begin your trading session by knowing interesting insights about pivotal levels that the market will look for as well as technical indicators and other vital factors that could impact the flow in the session.
Summary of Market Performance
The reason to great extent behind the overall market direction was greatly affected by key players who were on a buying spree which put the market in a strongly bullish zone. Possible drivers include expectations for a cut in the CRR (cash reserve ratio) and good news from major financial sectors. If the CRR is cut, banking and financial stocks will appreciate in value, which will improve the market further.
Bank Nifty Insights
Key Levels to Watch
Upper Resistance: In the last market, the BANK NIFTY index hit a peak of around 53880. This is likely to peak if it is above the key level of 54000 as call writers are prominent in this region and once again crosses 54,000. This means it would be a considerable barrier.
Support Levels: On the contrary side, 53500 remains a support for the index. If this is extreme breached it would put EUROPEAN markets under bearish pressure.
Expected Movements
Above the resistance level of 54,000, my expectations are fresh buying from the new market but on the contrary side movements below 53,500 will trigger a bearish mindset amongst the traders.
The drastic profit scaling that was witnessed in the previous sessions gives an impression about the market being cautious for its next trading session and expecting tomorrow to be an upbeat day.
Nifty Outlook
Resistance and Support Zones
Upper Resistance: Major call-writing activity is observed in the 25000 – 25100 range
Lower Support: As long as Nifty is above 24500-24600 bull will be in charge. If this range is cut Nimba bears will get the upper hand over bulls.
Scenarios for Tomorrow
A break out could be seen above 24950-25000 and a rally can be expected, whereas if 24400 mark is broken off, the correction might go deeper than anticipated.
Keep an eye out on flagging indicators as today’s upward shift could follow through as long as global cues do not disapprove.
Sensex Projections
Critical Levels
Resistance Zone: On the way up the sensex high of 82300-82500 is expected to major obstacle.
Support Levels: 81000-81300 seems to be a good support level which will be very important for the bullish push.
Market Indicators
A level beyond 82520 could see fresh bullish cycles with probable focus set to 83000 and onward.
Should a level under 810300 be maintained, pressure for selling might spike up and weakening macro cues might heighten it.
Key Catalysts for Tomorrow
RBI Policy Announcements
The RBI meeting being scheduled at 10 Am remains one of the very important meetings due this could influence the sentiment for the market heavily. The meetings discuss major issues such as CRR which if cuts could revolutionize the market particularly the banking one.
Institutional Activity
Once again, the market trends are getting shaped by the opposite moves of FIIs (Foreign Institutional Investors) and domestic institutions (DIIs). The sizable inflow of funds from FIIs coupled with aggressive buying has remained a key factor, which has somewhat neutralized profit booking by DIIs.
Sectoral Trends
Real Estate and Financial Stocks: A rise in activity is anticipated since the relevant sectoral indices show signs of activity.
Banking Stocks: Could be in the forefront as they tend to be responsive to interest rate considerations and liquidity.
Strategies for Traders
For Bulls
Watch for pullbacks to 54,000 for Bank Nifty, 25,000 for Nifty and 82,500 for Sensex. Overcoming these levels is likely to be rewarding.
Take a look at the banking, real estate, and financial services as they are turning strong.
For Bears
Take note of 53,500 (Bank Nifty) and 24,400 (Nifty). Breaking those levels towards the downside could be a good time for bearish trades.
In addition, use technical reversal patterns such as head and shoulders and trendlines.
Conclusion
All options will be governed by the resistance and support levels on the major indices during the trading session of December 6. It will be crucial to follow the RBI policy update, as it is one of the events that has been awaited and which can move the market substantially. Keep alert and reformulate your strategies as a response to the outcome.
Continue perfecting your trading with our daily updates. Like, share and subscribe for further relevant trading information.