Breaking News:Nifty 50, Sensex today: What to expect from Indian stock market in trade on December 26– What Just Happened

Trade Set-up for December 26: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open in the red on Friday, December 26 despite positive trends in the global markets.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading near 26,143 level, down 33 points or 0.13% from the Nifty futures’ previous close.

Indian stock markets were closed in the previous session, December 25 on account of Christmas. However, benchmark indices Sensex and Nifty 50 ended lower on Wednesday, December 24, as investors booked profits in select heavyweight stocks such as Reliance Industries and ICICI Bank, amid mixed cues from global markets.

The Sensex declined 116 points, or 0.14%, to end the session at 85,408.70, while the Nifty 50 slipped 35 points, or 0.13%, to settle at 26,142.10.

Reflecting the subdued market mood, the overall market capitalisation of BSE-listed companies slipped below ₹475 lakh crore, easing from ₹475.70 lakh crore recorded in the previous trading session.

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

Sensex Prediction

With volatility staying contained and Sensex oscillating within a narrow band, market participants are increasingly focusing on clearly defined levels rather than broad directional calls. Against this backdrop, Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the current market setup favours a cautious, level-driven approach, especially for intraday traders.

“We believe that the intraday market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders,” Chouhan said. He highlighted that on the upside, the 85,750 mark remained a crucial resistance zone for bulls, while 85,300 was the immediate support level to watch. According to him, a decisive move above the 85,750 level could open the door for a further upside towards the 86,000–86,200 zone. However, a slip below the 85,300 support could increase the probability of the market testing lower levels around 85,000.

Nifty OI Data

Commenting on the evolving setup, Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, said volatility continued to trend lower, signalling a relatively stable market environment.

“Volatility continued to moderate, with India VIX declining by 2% to 9.19, indicating reduced fear and relatively stable market expectations,” Shinde said.

She pointed out that derivatives data showed aggressive call writing at the 26,200 strike, suggesting strong resistance at higher levels, while heavy put open interest around the 26,000 mark reinforced this zone as a crucial support and pivot area.

Nifty 50 Prediction

As Indian equity markets move through a brief consolidation phase amid holiday-thinned volumes, analysts believe the broader uptrend remains intact, with range-bound trade seen as a pause before the next leg of the rally rather than a reversal.

Commenting on the outlook, Ajit Mishra, Senior Vice President–Research at Religare Broking, said the Nifty continued to hold a positive bias despite the ongoing consolidation.

“We maintain a positive bias amid the ongoing consolidation in the index and continue to recommend a buy-on-dips approach as long as the Nifty holds its prevailing uptrend,” Mishra said, advising traders to remain stock-specific, focus on outperforming sectors such as private banks, metals and auto in the current low-volume environment.

Meanwhile, Rajesh Bhosale, Equity Technical Analyst at Angel One, said the daily chart continued to show consolidation, with the Nifty forming back-to-back small-bodied candles as traders kept positions light ahead of the holiday.

“Considering the recent price action, the placement of key moving averages and supportive momentum indicators, the broader undertone remains positive, and we continue to expect Nifty to retest all-time highs and potentially create a fresh milestone in the near term,” Bhosale said.

He added that consolidation phases or intraday dips should be viewed as healthy opportunities to add on declines. According to him, the bullish gap zone around 26,050–26,000, coinciding with the 20-DEMA, continued to act as immediate support, while the 26,300–26,350 range remained the key resistance, beyond which a fresh upside move could emerge. Traders are advised to stay focused on selective themes and stock-specific opportunities showing relative strength.

Bank Nifty Prediction

As markets increasingly rely on technical signals to anticipate the next directional shift, the Bank Nifty is entering a phase where consolidation could soon give way to a decisive breakout.

Commenting on the technical setup, Hrishikesh Yedve, AVP – Technical and Derivative Research at Asit C. Mehta Investment Intermediates, said the daily chart reflected rising supply at higher levels but strong support on declines.

“Technically, on the daily chart, the Bank Nifty index has formed a red candle with a long upper shadow, reflecting selling pressure at higher levels. On the downside, the index has formed a good base around 58,800, while major resistance is placed near the 59,550 level. An eventual breakout on either side of this consolidation range is likely to set up the next directional move for the index,” Yedve said.

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.