Week Ending December 13th December 2024

Dear patrons, after spending the first four days in a tight range of 200 points between 24700 and 24500, Nifty had a violent move on either side on Friday to close almost 1% in the green. Nifty also gained mildly for the week. 

Globally, markets were stable with both the Nasdaq making new highs and Dow closing negative. European indices got a boost in the form of rate cut of 25 bps by the ECB effective 18th December.

Last week we tried to define the need for technical analysis. Let us delve into the secrete of becoming a successful trader. To become a successful trader on must adhere to some rules and strategize for profit maximization.

1: Strategy rule for trading: ✓ Define your entry trigger. ✓ Define your exit triggers. ✓ Define a daily target. ✓ Define a daily loss limit. 

2: Money management: ✓ How much capital are you willing to risk? ✓ How much are you capable of losing? ✓ Determine a risk reward ratio. ✓ Think and plan for profits. 

3: Psychology: ✓ Keep track of your feelings, throughout any trading session. ✓ Don't hesitate to trade at a loss. ✓ Don't be overconfident after a winning strike. ✓ Be attentive to the market signals. 

4: Tools: ✓ What indicators do you use? ✓ What tools do you use for analysis? ✓ What tools do you use for risk management?

The key to becoming a successful trader is how strictly one follows the rules.

Let's take a look at technicals and try to figure out what is in store for next week.

Nifty managed to hold onto the important support level of 24500 and closed handsomely positive. For the coming week Nifty has resistance around 25100. Move above this level should take Nifty further upwards towards new lifetime high. Support for Nifty is placed around 24450-24250 range followed by 24000-23800.

BankNifty also spent first four days in a tight range and saw huge swings on Friday. After a plunge of almost 1000 points BankNifty managed to pull back and erased all losses to close around 0.75% in the green. Resistance for BankNifty is placed around 54000, while support lies around 52700. In all likelihood BankNifty should move beyond its recent high levels in coming days.

Traders should have ample trading opportunity on either side. Markets may, however face shortage of volumes and trading activity may remain dull.

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.