India's key stock market indices, the Sensex and Nifty 50, are anticipated to begin Friday's trading session on a negative note. This cautious outlook persists even as major global markets exhibit positive trends. The Gift Nifty, an early indicator, was trading around the 26,143 mark, reflecting a marginal decline of 33 points or 0.13% from the previous close of Nifty futures.
Market Context and Previous Session Close
Domestic equity markets remained shut on Thursday, December 25, for the Christmas holiday. In the last active session on Wednesday, December 24, benchmark indices closed lower. The Sensex dropped 116 points, or 0.14%, to settle at 85,408.70. Similarly, the Nifty 50 fell by 35 points, or 0.13%, ending the day at 26,142.10. This decline was primarily driven by profit-booking in heavyweight stocks like Reliance Industries and ICICI Bank, against a backdrop of mixed global signals.
The subdued sentiment was further reflected in the total market capitalisation of companies listed on the Bombay Stock Exchange (BSE), which dipped below the ₹475 lakh crore threshold from ₹475.70 lakh crore in the prior session.
Analyst Views on Key Indices
Sensex and Nifty 50 Outlook
Market experts suggest the indices are in a consolidation phase but maintain a positive underlying bias. Shrikant Chouhan of Kotak Securities highlighted a non-directional intraday texture, advocating for a level-based trading strategy. He identified 85,750 as a crucial resistance for the Sensex and 85,300 as immediate support. A break above 85,750 could target 86,000-86,200, while a fall below 85,300 might test the 85,000 level.
For the Nifty 50, Ajit Mishra of Religare Broking advised maintaining a buy-on-dips approach as long as the prevailing uptrend holds. Rajesh Bhosale of Angel One noted that the daily chart shows consolidation with small-bodied candles but expects the index to retest all-time highs soon. He pinpointed 26,050-26,000 (near the 20-DEMA) as key support and 26,300-26,350 as major resistance.
Amruta Shinde of Choice Equity Broking pointed to derivatives data, indicating strong resistance at the 26,200 strike due to aggressive call writing and solid support around 26,000 from heavy put open interest. The India VIX fear index fell 2% to 9.19, signaling reduced market anxiety.
Bank Nifty Technical Setup
The banking index is also witnessing a phase of consolidation, which analysts believe could precede a decisive breakout. Hrishikesh Yedve of Asit C. Mehta Investment Intermediates stated that the Bank Nifty daily chart reflects selling pressure at higher levels but a firm base around 58,800. The major resistance is seen near 59,550. A breakout on either side of this 58,800-59,550 range is likely to determine the index's next directional move.
Investment Strategy and Sector Focus
In the current environment of holiday-thinned volumes and range-bound trade, analysts recommend a stock-specific approach. Traders are advised to focus on sectors showing relative strength and outperformance. Private banks, metals, and the auto sector are highlighted as areas where selective opportunities may exist. The broader view remains that the ongoing consolidation is a pause within a larger uptrend rather than a reversal.
Disclaimer: The views and recommendations presented are those of individual analysts or broking firms. Investors are strongly advised to consult with certified experts before making any investment decisions.
