Indian equity markets are poised for a cautious opening on December 26, reflecting a range-bound trading outlook amid low volatility. The benchmark indices are expected to remain within a narrow trading range, with investors navigating the market based on technical levels and stock-specific opportunities. According to early trends from GIFT Nifty, the domestic market may begin near the 26,143 level, down 33 points from the previous close of Nifty futures.
On December 25, Indian markets were closed in observance of Christmas. In the last trading session on December 24, both the Nifty 50 and the Sensex recorded slight declines as investors took profits. The Sensex fell by 116 points, or 0.14%, finishing at 85,408.70, while the Nifty 50 dropped 35 points, or 0.13%, to close at 26,142.10. This movement indicated a subdued market sentiment, with the Nifty Midcap100 declining by 0.6%, while the Nifty Smallcap100 managed a modest gain of 0.3%.
Market Trends and Outlook
The Sensex is anticipated to trade within a narrow range, with immediate resistance positioned near 85,750 and critical support at 85,300. If the index sustains above the resistance level of 85,750, it may pave the way for a rally towards the 86,000-86,200 range. Conversely, a drop below 85,300 could increase the likelihood of testing lower levels around 85,000.
The Nifty 50 demonstrates a positive outlook, even as it consolidates. Significant support is established around the 20-day moving average, corresponding to the 26,050-26,000 range. Should the index break above the resistance level of 26,300-26,350, it may enter a new phase of upward momentum and potentially reach new highs. Notably, strong call writing at the 26,200 level indicates a formidable resistance, while heavy put open interest at the 26,000 strike reinforces this as a solid support level. The India VIX has decreased by approximately 2% to 9.19, suggesting a reduction in market anxiety and more stable expectations.
Banking Sector Performance
The Bank Nifty is expected to continue its consolidation phase, forming a base within the range of 58,500-60,100 in the upcoming weeks. A rise above last week’s high of 59,533 could signal further upside toward the recent all-time high of 60,100. Key support levels are identified at 58,300-58,600, which coincide with the 50-day exponential moving average and a recent breakout area. Resistance is anticipated around 59,550, and a breakout from this range may dictate the next directional movement for the banking index.
As trading resumes post-holidays, market participants are advised to remain cautious and attentive to specific stock movements and technical indicators, particularly given the current low-volume environment.
Investors should conduct thorough research and consider the financial risks involved before making any investment decisions. This article is intended for informational purposes only and does not constitute financial advice.
