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

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday amid positive signals from Asian markets, with many major global equity markets remaining closed for holidays today.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,800 level, a premium of nearly 30 points from the Nifty futures’ previous close.

The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 19,440 level, a discount of nearly 30 points from the Nifty futures’ previous close.

Indian stock market and major global markets were shut on Wednesday on account of Christmas.

On Tuesday, the domestic equity market benchmark indices ended choppy session marginally lower.

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

Nifty 50 formed a small red candle on the daily chart beside the similar positive candle of Monday.

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

According to him, the near term trend of Nifty 50 is still weak and there are no signs of any important bottom reversals forming at the lows. Immediate resistance is placed around 23,900 – 24,000 levels and the next lower support is at 23,500.

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

Nifty OI Data

Nifty Open interest data indicates key levels of interest 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 points to a range-bound market with directional clarity likely to emerge only after a breakout or breakdown from the current range, said Mandar Bhojane, Research Analyst, Choice Broking.

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

Nifty 50 Prediction

Nifty 50 failed to show follow-through upmove on December 24 and closed the day lower by 25 points amidst choppy movement.

“The Nifty remained mostly rangebound 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 bearish trend. The RSI is in a bearish crossover and continues to decline, reinforcing the negative outlook. On the downside, support is placed at the 23,500 – 23,400 zone, while resistance is seen at 23,860,” said Rupak De, Senior Technical Analyst, LKP Securities.

VLA Ambala, Co-Founder of Stock Market Today noted that the market sentiment remained 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 manageable trades in the short term. It is best for traders to keep their exposure limited, as the overall market is fragile and even reliable setups might 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, on technical charts, Nifty 50 formed a Gravestone Doji candlestick pattern during the last session, indicating a bearish sentiment. Amid these developments, Nifty can hover for support near 23,650 and 23,480 and notice resistance around 23,850 and 23,970.

Bank Nifty Prediction

Bank Nifty index ended 84.60 points, or 0.16%, lower at 51,233.00 on Tuesday, forming an Inside Bar pattern on the daily time charts.

“On the daily chart, the Bank Nifty index formed a small red candle. On the downside, the 200-Days Simple Moving Average (200-DSMA) is placed near 50,540, which will act as a strong support for the index. On the higher side, the 100-Days EMA hurdle is placed near 51,650 levels. So, in the short term, the index is likely to consolidate in the range of 50,540 – 51,650 levels. Either side breakout will set 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 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.