Indian equity benchmarks, the Sensex and Nifty 50, are likely to see a subdued opening on Wednesday, December 31, marking the final trading session of the year. The muted start is anticipated due to thin trading activity and a lack of strong directional cues from global markets, as several key Asian bourses remain closed for New Year's Eve.
Market Outlook and Global Cues
The trends on Gift Nifty, which trades on the NSE International Exchange, pointed towards a flat but marginally positive start for the domestic indices. The Gift Nifty was seen trading near the 26,127 level, reflecting a gain of 24 points or 0.09% over the previous close of Nifty futures.
In the preceding session on Tuesday, the market ended largely unchanged. Investor sentiment was cautious in the absence of fresh domestic triggers and amid mixed signals from international peers. The Sensex closed at 84,675.08, down 20 points or 0.02%, while the Nifty 50 settled at 25,938.85, lower by 3 points or 0.01%. Markets witnessed stock-specific movements, keeping the main indices within a tight range.
Analyst Views on Key Indices
Sensex and Nifty 50 Technical Analysis
Market experts suggest the benchmarks are in a phase of consolidation, with traders awaiting a clear breakout. Shrikant Chouhan of Kotak Securities noted the Sensex is showing signs of indecision on charts. He stated that the market has seen non-directional activity, with 85,000 acting as a key resistance and 84,500 as crucial support. A breach on either side could determine the next trend.
For the Nifty 50, Rupak De from LKP Securities observed that while the recent correction has paused, negative technical factors persist. He identified immediate support in the 25,850–25,870 zone and resistance at the 26,000 mark. Osho Krishan of Angel One added that the formation of a Doji candlestick pattern highlights trader uncertainty, with critical support at 25,700 and resistance between 26,100–26,150.
On the derivatives front, Amruta Shinde of Choice Equity Broking pointed out that the India VIX, a fear gauge, rose slightly to 9.67. Aggressive call writing at the 26,000 strike indicates this level is a significant pivot for the Nifty.
Bank Nifty Prediction
The banking index also appears to be in a wait-and-watch mode. Vatsal Bhuva of LKP Securities said Bank Nifty formed a small candlestick, reflecting indecision. The index is oscillating in a range with strong support at 58,750 and resistance at 59,300.
Offering a slightly optimistic view, Hrishikesh Yedve from Asit C. Mehta Investment Intermediates noted the index formed a bullish engulfing pattern near its 50-day moving average. He suggested that as long as it holds above the 58,700–58,800 support zone, a buy-on-dips strategy could be viable for traders, with resistance seen around 59,550.
Market Sentiment and Forward Look
Overall, market participants are treading carefully as the year draws to a close. Sentiment remains guarded ahead of the December quarter corporate earnings season and amid ongoing monitoring of geopolitical developments, including India-US trade talks. The prevailing low-volatility regime and narrow trading range suggest that a decisive trigger is needed for the market to embark on a new directional move.
Disclaimer: The views and recommendations presented are those of individual analysts or broking firms. Investors are advised to consult certified experts before making any investment decisions.
