Market Analysis: Nifty 50 Price Action

Dec 12, 2024

The NIFTY is currently exhibiting a tug-of-war between key levels, retracing from a previous selloff zone that acted as resistance. Notably, it found support at a previous supply turned demand zone. These zones have defined the market's boundaries in today's session, with price movements constrained within them.

For the past three sessions, the index has shown signs of consolidation, reflecting indecision among market participants. A breakout above the resistance zone could signal a continuation of the uptrend in NIFTY, while a breakdown below the demand zone may suggest a reversal or further bearish sentiment.

Key Scenarios for Tomorrow:
Breakout Scenario: A sustained move above the selloff zone could trigger bullish momentum, attracting fresh buying interest and potentially setting higher targets.

Breakdown Scenario: If the demand zone is broken, it may open doors for further downside, with the next support levels coming into focus.

Continued Consolidation: The market may remain range-bound as it digests prior moves, awaiting clearer cues from global or domestic events.

Disclaimer
This analysis is for educational and informational purposes only and should not be considered as financial advice. Market conditions are subject to change, and you should consult with a certified financial advisor or conduct your research before making investment decisions. Past performance is not indicative of future results. Trade responsibly.