Trade Set-up for December 22: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday, December 22 following positive trends in the global markets. Asian share markets rose on Monday tracking tech-driven gains on Wall Street.
The trends on Gift Nifty indicate a positive start for the Indian benchmark index. The Gift Nifty was trading near 26,170 level, up 139 points or 0.54% from the Nifty futures’ previous close.
Indian stock markets closed with strong gains on Friday, December 19, snapping a four-day losing streak, supported by a stable rupee, positive global cues and an in-line policy outcome from the Bank of Japan. The Sensex jumped 448 points, or 0.53%, to end at 84,929.36, while the Nifty 50 advanced 151 points, or 0.58%, to settle at 25,966.40. Meanwhile, broader markets outperformed, with the BSE Midcap index rising 1.26% and the Smallcap index climbing 1.25%.
Investor wealth jumped sharply, as the total market capitalisation of BSE-listed companies rose to over ₹471 lakh crore from ₹465.8 lakh crore in the previous session, adding more than ₹5 lakh crore in a single day.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
The Sensex closed near 84,929, continuing to trade in a narrow range as investors remained cautious at higher levels. Market participants observed steady buying interest in the 84,500–84,400 zone, while the 85,000–85,100 range continued to act as a strong resistance area.
Mayank Jain, Market Analyst at Share.Market, said derivative positioning points to consolidation near current levels. “There is significant weekly call and put open interest at the 85,000 strike, indicating consolidation around this level,” he said, adding that a decisive breakout from the prevailing range would be key to determining the next phase of market direction.
Nifty OI Data
The derivatives setup is pointing to a more cautious tone in the market, with positioning suggesting consolidation rather than an immediate breakout.
Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, said the options data reflects growing caution. “Call writers have added fresh positions at at-the-money and nearby strikes, reinforcing overhead resistance, while put writers rolling positions to lower strikes point to prolonged consolidation,” he said.
Data also shows a heavy build-up of nearly 1.41 crore call contracts at the 26,000 strike, clearly marking it as a strong resistance zone. On the downside, the accumulation of around 1.36 crore put contracts at the 25,900 strike provides a firm support base. Meanwhile, the Put-Call Ratio has improved to 1.10 from 0.66, indicating a mild pickup in positive sentiment and suggesting that buyers continue to defend lower levels despite the cautious undertone.
Nifty 50 Prediction
The benchmark index Nifty 50 is entering a critical phase, with investors looking ahead to the next directional cue amid mixed technical signals. While the broader trend remains constructive, analysts said the index is still negotiating key resistance zones, making disciplined trading essential in the near term.
Hitesh Tailor, Research Analyst at Choice Broking, said the index continues to trade above its 20-day, 50-day and 200-day EMAs, reinforcing the broader bullish undertone. “As long as the index sustains above these levels, market sentiment is expected to remain constructive and upward-biased,” he said. Tailor identified 26,000 as immediate resistance, followed by 26,200 and 26,400, while support lies at 25,900 and 25,800. He warned that a break below 25,700 could attract further selling pressure, adding that a buy-on-dips strategy remains appropriate, provided traders maintain strict stop-losses amid volatility.
Osho Krishan, Chief Manager – Technical and Derivative Research at Angel One, struck a more cautious note, pointing to an Inside Bar formation on the weekly chart, which reflects limited momentum. He said resistance near the 20 and 50 DEMA levels remains a hurdle, even though the index has recently moved above the 20 DEMA. “The 25,850–25,800 zone is likely to cushion any intermediate shortcoming, while the sacrosanct support is placed around the 25,700 zone,” Krishan said, noting that this level has held over the past two weeks.
On the upside, Krishan said only a decisive move above 26,050–26,100 would offer relief to bulls and potentially open the way toward 26,300–26,325. Until clearer trends emerge, he advised a pragmatic approach, with close attention to key themes, global developments and currency market movements.
Bank Nifty Prediction
Bank Nifty is heading into the coming sessions at a crucial inflection point, with technical signals suggesting a period of consolidation before the next decisive move. While the index has managed to stay above key psychological levels, analysts said indecision on the charts indicates that traders are awaiting clearer cues for direction.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking, noted that the index closed above 59,000 but continues to trade below its immediate resistance at the 21-day DMA near 59,260. According to Jain, “a decisive break above this level could pave the way for further upside towards the 60,000 mark.” On the downside, he identified the 50-DMA around 58,470 as a key support and said the index is likely to oscillate in a broader 58,400–60,000 range with a positive bias in the coming week.
Vatsal Bhuva, Technical Analyst at LKP Securities, highlighted the formation of a Doji candlestick on the weekly chart, pointing to indecisiveness. He said Bank Nifty once again failed to close above its 10-day SMA in Friday’s session, keeping short-term sentiment cautious. “A few more consolidation sessions are expected, with the index likely to trade in a narrow range between 58,800 and 59,500 levels,” Bhuva said. He added that the undertone remains bearish, noting that a breakout above 59,500 or a breakdown below 58,800 will determine the next directional move. Immediate support is placed at 58,800, while resistance stands at 59,200 and 59,500.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.