The Indian stock market is bracing for another challenging session on Tuesday, December 30, with benchmark indices likely to extend their losing streak to a fifth consecutive day. The subdued sentiment follows thin trading activity and a lack of positive triggers from global markets, keeping investor risk appetite in check.
Market Outlook and Global Cues
The early indicator, Gift Nifty, was trading around the 25,936 mark, reflecting a decline of 29 points or 0.11% from the previous close of Nifty futures. This points towards a negative opening for the domestic indices. The market's weakness is being fueled by persistent selling from foreign institutional investors (FIIs), which has kept sentiment under pressure, leading to a phase of near-term consolidation.
In the previous session on Monday, December 29, the markets closed deep in the red. The BSE Sensex fell 345.91 points, or 0.41%, to settle at 84,695.54, marking its fourth straight day of losses. Similarly, the NSE Nifty 50 dropped 100.20 points, or 0.38%, to end at 25,942.10, extending its decline for the third session in a row.
Technical Analysis: Sensex and Nifty 50 Predictions
For the Sensex, the breach of the psychologically crucial 85,000 level has reinforced a short-term bearish bias. Market analyst Mayank Jain from Share.Market noted that this failure to reclaim lost ground signals growing downside risk. He identified 84,400–84,500 as a critical support zone, with strong overhead resistance created by call writing. Aakash Shah of Choice Equity Broking highlighted that trading below the 20-day moving average suggests cautious sentiment. He sees immediate support in the 84,200–84,300 range, followed by the 84,000 level.
For the Nifty 50, technical signals are flashing caution. Osho Krishan from Angel One stated that the index slipping below the 20-DEMA with a negative RSI crossover indicates sellers are in control. He pegs immediate support in the 25,900–25,850 zone, with 25,700 as a crucial trend level. A move above 26,100–26,150 is needed to revive bullish momentum. Nilesh Jain added that the formation of lower highs and lows reflects short-term weakness, with the 50-DMA near 25,920 providing support. He expects the Nifty to trade in a broad 25,800–26,100 range amid high volatility near the F&O expiry.
Derivatives data adds to the cautious picture. Amruta Shinde of Choice Equity Broking pointed out that the India VIX, a fear gauge, rose 6.23% to 9.7, indicating heightened uncertainty. Aggressive call writing at 26,200 and strong put open interest near 25,900 define a critical pivot zone.
Bank Nifty Enters Consolidation Phase
The banking index appears to be entering a period of consolidation after its recent rally. Hrishikesh Yedve of Asit C. Mehta Investment Intermediates observed that Bank Nifty formed a small red candle with shadows, indicating trader indecision. Resistance is seen at 59,800 and 60,115, while the 58,700–58,800 zone acts as a key demand area.
Amruta Shinde noted that despite a positive opening on Monday, the index witnessed intraday selling pressure, slipping to a low of 58,809. This suggests profit booking and growing caution. Immediate resistance is now placed at 59,150–59,250, with supports at 58,600 and 58,700 being vital for near-term stability.
Disclaimer: The views and recommendations expressed are those of individual analysts or broking firms. Investors are advised to consult certified experts before making any investment decisions.
