Nifty & S&P: Range-Bound and Vulnerable to Downside

Nifty: Confined within a range, poised for a potential breakout, with a downside bias.

“NIFTY spent the entire past week inside the intraday range of 20th December. So, obviously, a break either side of the 20th December high or low is likely to produce a very powerful move on that side. I personally would be more interested in a move on the downside. But that does not matter as traders; we always require market confirmations to validate our expectations.”

Nifty Faces Strong Resistance: Downside Risks Remain

“For NIFTY, major resistance on the upside stands at 24,000 to 24,200 on spot. As long as the index stays below this zone, it should only be a matter of time before it breaks its December 20th low of 23,537 and subsequently breaks its November low of 23,263 in the next few days. On the time front, specifically for NIFTY, there is no dedicated major cycle date due until mid-January. This is the most dangerous thing for investors who are hoping for a respite from the selloff.”

S&P: Testing resistance, showing signs of weakness, and potentially vulnerable to a significant correction.

https://ganninsides.com/2024/12/19/time-cycles-and-market-turmoil-sp-500-and-nvidia/

“On S&P, as I discussed on December 19th, we likely have a durable top in place at 6100. In the past week, the index went very close towards that high but reversed back very sharply on Friday. Still, the index is yet to convincingly break the critical support of 5840, as I discussed earlier. Once that breaks, markets should be in for a waterfall decline towards 5620. The open gap of election results day is providing good support to the index. Once that gap fills, our projected higher degree correction would officially get confirmed. Anticipating this to get through post-critical time cycle dates of January 2nd, let’s see.”