The Indian stock market ended last week with Sensex consolidating just below record highs and Nifty 50 continuing its upward trajectory within a long-term rising channel. Low trading volumes and selective selling in heavyweight stocks characterized the week, amid mixed global cues and lack of fresh market triggers.
On the day of Friday, December 26, there was a decline in the stock market, where the Sensex lost 367 points (0.43%) and wrapped up the day at 85,041.45, additionally, the Nifty 50 dropped by 100 points (0.38%) and settled at 26,042.30. Despite that, the markets’ weekly gains were not affected by the Friday drop, as the Sensex gained 112 points (0.13%) and the Nifty 50 was up by 0.30%, thereby ending the three-week downward trend.
“Markets slipped nearly half a percent after two sessions of range-bound trading. Sectoral performance mirrored the benchmarks with IT, financials, and auto sectors under pressure. Broader markets remained flat to slightly positive, reflecting cautious participation in a holiday-shortened week,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
Trade Setup for December 29
The Indian benchmark indices are expected to open flat to mildly positive on Monday, December 29, supported by ongoing geopolitical cues. GIFT Nifty futures indicated a positive start, trading near 26,100, up 20.50 points (0.8%) from the previous Nifty futures close.
Sensex Outlook
Sensex remains consolidated below all-time highs. Analysts highlight:
- Support Zone: 84,800–84,500
- Upside Potential: 85,500–85,800 to 86,000–86,500
“Institutional accumulation is evident near the support zone. A firm close above 85,500–85,800 could trigger upside momentum in the weeks ahead,” said Ponmudi R, CEO, Enrich Money.
Nifty 50 Outlook
Nifty 50 closed the week at 26,042, remaining above the 20-day EMA, maintaining a medium-term bullish bias. Key levels include:
- Support: 26,000–25,900
- Resistance: 26,200–26,300
“A decisive breakout above 26,200–26,300 could push the index toward 26,500–26,800 in early 2026. Any dip to 25,800 is expected to attract buying rather than indicate structural weakness,” said Ponmudi R.
Derivative Market Insight: Strong put accumulation around 26,000 reinforces near-term support, while call writing at 26,200–26,300 caps immediate upside. Analysts suggest a range-bound setup until a breakout occurs.
Bank Nifty Outlook
Bank Nifty closed at 59,011, well-supported above its rising channel and key moving averages. Analysts note:
- Support: 58,800–59,000
- Upside Potential: 60,000–60,500
- Downside Risk: 58,000–58,500
“Keeping above 58,800–59,000 maintains the positive outlook. However, a drop below 58,000–58,500 could indicate short-term weakness, although the overall uptrend is still alive,” said Ponmudi R.
Key Takeaways
- The markets are consolidating at the end of the year with a minor volatility forecast.
- The Nifty and Bank Nifty’s support and resistance levels will be the indicators for the short-term trades.
- Institutional buying close to major support areas is protecting against a fall in prices.
- Professional traders are advised to keep an eye on derivative positioning, open interest, and international signals to forecast possible market movements.
Disclaimer:The evaluation embodies the opinion of the analysts and the research experts. It is advisable for investors to seek opinions of certified financial advisors before taking any trading or investment decisions.
