Trade Set-up for December 16: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a weak note on Tuesday, December 16.
The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading near 26,085 level, down 5.5 points or 0.02% from the Nifty futures’ previous close.
Snapping a two-session winning streak, Indian equities ended lower on Monday, December 15, as the Sensex and Nifty 50 slipped into negative territory amid mixed global cues. The Sensex declined 54 points, or 0.06%, to close at 85,213.36, while the Nifty 50 fell 20 points, or 0.08%, to end at 26,027.30.
In contrast, broader markets outperformed the benchmarks. The BSE Midcap index closed 0.16% higher, and the BSE Smallcap index advanced 0.41%, extending their recent resilience.
Despite the weakness in frontline indices, the overall market capitalisation of companies listed on the BSE remained steady at nearly ₹470.4 lakh crore, marginally higher than ₹470.3 lakh crore in the previous session, supported by gains in mid and small-cap counters.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex is likely to remain range-bound in the near term as benchmark indices hover close to key technical levels. Analysts observed that Sensex is trading near their short-term averages, indicating consolidation rather than a clear trend.
Mayank Jain, Market Analyst at Share.Market, said the Sensex is displaying a structure similar to the Nifty as it trades close to its 20-day moving average and stays comfortably above the 50-day average. “The Sensex holding the 85,000–84,800 support zone suggests the broader trend remains stable, and as long as these levels hold, the market is likely to witness consolidation with scope for sharp intraday swings due to rising open interest on both calls and puts at the 85,000 strike,” he noted. Jain expects the next session to see movement within 84,800–85,500, with any break above 85,500 or below 84,800 likely setting the tone for a directional move.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said traders should watch 84,850 and 84,600 as key support zones. “As long as the market trades above 84,850 and 84,600, the positive sentiment should continue, while on the higher side 85,500 remains the immediate resistance that could push the market to 85,800 if crossed,” he said. Chouhan added that a break of 85,500 on the Sensex could extend gains, although the uptrend would turn vulnerable below 86,000.
Nifty OI Data
Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking said “Volatility remained benign, with India VIX rising modestly by 1.41 percent to 10.25, pointing to continued complacency and expectations of range-bound trade. Derivatives data reflects aggressive call writing at the 26,100 strike, while strong put open interest at 26,000 underscores a tightly defined trading band in the near term. A sustained close above 26,300 will be essential to revive bullish momentum, while failure to do so may extend the ongoing consolidation in the sessions ahead.”
Nifty 50 Prediction
With markets entering a decisive phase, analysts expect the Nifty 50 to witness tighter ranges and potential breakout attempts in the coming sessions, as the index hovers near critical moving averages and battles repeated resistance zones.
Nilesh Jain, Head – Technical and Derivatives Research (Equity Research) at Centrum Broking, said the index is showing signs of resilience even as it pauses after recent gains. “The Nifty ended its two-day winning streak and moved within a narrow range, facing resistance near the 21-DMA at 26,030 but still managing to close above the 26,000 mark, which keeps the broader trend constructive as long as supports at 25,900 and 25,770 continue to hold,” he said. Jain added that a decisive move above 26,100 could open the door for an extension toward 26,250, noting that the buy-on-dips strategy remains intact as long as the index stays above 25,700.
Osho Krishan, Chief Manager – Technical and Derivative Research at Angel One, said the market displayed strong recovery tendencies despite the weak start. “The Nifty50 opened with a downward gap but market participants showed resilience by swiftly countering early losses, allowing the index to recoup most intraday declines and ultimately end with only a 0.08% fall while maintaining the crucial 26,000 level,” he noted. Krishan highlighted that the index continues to trade above the 20-DEMA, with the recent dips favouring bullish sentiment. Key support levels lie at 25,900–25,850, followed by the sacrosanct 25,750–25,700 zone, while resistance persists at 26,150–26,200. A breakout above this band could lead the Nifty to fresh all-time highs of 26,325.
Krishan said the near-term outlook remains cautiously optimistic and advised traders to continue with a buy-on-dips approach while focusing on thematic movers likely to generate intraday opportunities.
Bank Nifty Prediction
The Bank Nifty staged a steady recovery on Monday, reversing early losses after a gap-down open and closing in positive territory at 59,462. The index formed a bullish candle on the daily chart, reflecting renewed buying interest at lower levels and signalling short-term stability within a defined range.
Hrishikesh Yedve, AVP – Technical and Derivative Research at Asit C. Mehta Investment Intermediates Ltd, said the day’s price action underscores strong demand near key support zones. “The Bank Nifty index opened on a gap-down note, witnessed buying interest after the initial dip, and settled on a positive note at 59,462, forming a big bullish candle that clearly indicates sustained buying at lower levels,” he said. Yedve noted that 58,800–58,900 will act as immediate support, while 60,000–60,120 remains a stiff resistance band. He advised short-term traders to buy near support and book profits around resistance.
Vatsal Bhuva, Technical Analyst at LKP Securities, said the index’s ability to stay above key moving averages adds to its near-term strength. “On Monday’s session, Bank Nifty closed with a bullish candlestick on the daily chart and managed to remain above its 20-day SMA, indicating short-term stability even though the RSI has yet to confirm a bullish crossover, keeping momentum somewhat uncertain,” he noted. Bhuva highlighted immediate resistance at 59,600 and support around 58,800, adding that a breakout above 59,600 could accelerate gains toward 60,500.
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.