Tomorrow’s Market Prediction (December 21, 2023):

Overall Sentiment:

• Slightly bearish: Today’s downward movement and profit booking momentum suggest a potential for further decline.
• Volatility: Expect continued choppy trading as investors adjust positions and react to news.

Specific Predictions:

• Nifty:
  o Support Levels: 21040, 20966 (recent pivot point), 20800 (psychological level).
  o Resistance Levels: 21297 (previous day’s high), 21419 (previous day’s close), 21554.
• Bank Nifty:
  o Support Levels: 47191, 46943 (recent pivot point), 46600 (psychological level).
  o Resistance Levels: 47778 (previous day’s high), 47868 (previous day’s close), 48365.

Factors to Watch:

• Global Cues: Keep an eye on the performance of US and European markets.
• FII Activity: Continued selling by FIIs could exert downward pressure.
• Expiry of Monthly Options: The expiry of monthly options contracts on Thursday might add to volatility.
• News and Events: Any major news or events could significantly impact the market.

Possible Scenarios:

• Bullish Scenario: If there’s positive news or a bounce in global markets, Nifty might pull back towards 21,419 and Bank Nifty could reach 47,868.
• Neutral Scenario: The market may find temporary support at the mentioned levels and range within them.
• Bearish Scenario: If negative news or further selling by FIIs occurs, Nifty could dip towards 20,966 and Bank Nifty could touch 46,943.

Additional Tips:

• Short-term Trading: If you’re looking for short-term trading opportunities, focus on momentum and technical indicators.
• Long-term Investors: Long-term investors can use this dip as an opportunity to buy into quality stocks at discounted prices.
• Risk Management: Strictly use stop-loss orders to limit potential losses, especially in this volatile market.

Remember, the market is dynamic and unpredictable. These are just potential scenarios, and the actual outcome may differ.

Disclaimer: This information is based on technical analysis and expert opinions. It is not a guarantee of future performance.