Nifty 50, Sensex today: What to expect from the Indian stock market in December 26 trading

Indian stock market benchmark indices Sensex and Nifty 50 are expected to open higher on Thursday on positive cues from Asian markets as many major global stock markets remain closed for holidays today.

Gift Nifty trends also point to a positive start for India’s benchmark index. The Gift Nifty was trading at around 23,800, a premium of nearly 30 points to the previous close of the Nifty futures.

Gift Nifty trends also point to a slow start for India’s benchmark index. The Gift Nifty was trading at around 19,440, a discount of almost 30 points to the previous closing price of the Nifty futures.

The Indian stock market and major global markets were closed on Wednesday for Christmas.

On Tuesday, domestic stock market benchmark indices ended the choppy session slightly in the red.

The Sensex fell 0.09% to close at 78,472.87, while the Nifty 50 closed 25.80 points or 0.11% lower at 23,727.65.

Nifty 50 formed a small red candle on the daily chart alongside the similar positive candle from Monday.

“Typically, these two candles indicate the formation of an inside-day bar. Normally, after a reasonable decline, such pattern formations only signal caution about impending trend reversals after confirmation. A sustained move above 23,900 level could confirm a bullish reversal pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short-term trend of the Nifty 50 is still weak and there are no signs of a major bottom reversal forming at the lows. The immediate resistance is around 23,900 to 24,000 points and the next lower support is at 23,500.

Here’s what you can expect from Nifty 50 and Bank Nifty today:

Sophisticated OI data

Nifty Open Interest data shows key interest levels for traders. Significant call open interest at 24,000 and 24,200 highlights resistance, while maximum put open interest at 23,500 suggests strong support at this level. This suggests a range-bound market with directional clarity that is likely to emerge only after a breakout or breakdown from the current range, said Mandar Bhojane, research analyst at Choice Broking.

Overall, the market remains in a consolidation phase and cautious positioning is recommended until a clear trend emerges, he added.

Nifty 50 prediction

Nifty 50 failed to show any further upward movement on December 24 and ended the day down 25 points amid choppy movement.

“The Nifty remained mostly range-bound throughout the day before closing flat. On the daily chart, the index closed below the 200-DMA for the first time in three days, confirming a short-term downtrend. The RSI is in a bearish crossover and continues to decline, reinforcing the negative outlook. On the other hand, support is in the 23,500-23,400 range while resistance is at 23,860,” said Rupak De, Senior Technical Analyst at LKP Securities.

VLA Ambala, co-founder of Stock Market Today, noted that market sentiment remains weak but it may also present new opportunities for long-term investors.

“In such a market environment, I would advise investors to approach trading activities cautiously and focus on short-term manageable transactions. It is best for traders to keep their exposure limited as the overall market is fragile and even reliable setups could fail. While Nifty is trading around its 200-day EMA (Exponential Moving Average), a level often seen as a good entry point for buyers, the overall sentiment remains bearish,” Ambala said.

According to her, Nifty 50 formed a Gravestone Doji candlestick pattern on technical charts during the last session, indicating bearish sentiment. Amid these developments, Nifty can look for support at 23,650 and 23,480 and notice resistance at 23,850 and 23,970.

Bank Nifty Prediction

The Bank Nifty index closed 84.60 points or 0.16% lower at 51,233.00 on Tuesday, forming an inside bar pattern on the daily charts.

“On the daily chart, the Bank Nifty Index formed a small red candlestick. On the other hand, the 200-day Simple Moving Average (200-DSMA) is at 50,540, which will serve as strong support for the index. On the upside, the 100-day EMA hurdle is around 51,650. In the short term, the index is likely to consolidate in the 50,540 to 51,650 range. The breakout on either side will determine the future direction of Bank Nifty,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms and not of Mint. We recommend investors consult certified experts before making an investment decision.