Indian equity benchmarks, the Sensex and Nifty 50, are poised for a positive opening on Wednesday, December 24, mirroring upbeat trends in global markets. This optimistic sentiment follows record highs on Wall Street, fueled by robust US economic growth data for the third quarter.
Global Tailwinds and Domestic Market Setup
Asian share markets advanced on Monday, taking cues from a strong rally on Wall Street. The surge in US markets was driven by a surprisingly solid economic report. The US economy expanded at an annual rate of 4.3% in the July-September quarter. This builds on the 3.8% growth seen in the second quarter and marks a significant recovery from the first quarter's contraction.
Back home, the trends on Gift Nifty also signal a favourable start for the Indian benchmark index. The Gift Nifty was trading near the 26,234 level, up 31 points or 0.12% from the previous close of Nifty futures.
On Tuesday, December 23, the domestic indices had closed flat. Profit booking at higher levels limited gains, even as mid- and small-cap stocks managed to edge higher. The Sensex slipped 43 points, or 0.05%, to end at 85,524.84. Meanwhile, the Nifty 50 added a marginal 5 points, or 0.02%, to settle at 26,177.15. The BSE Midcap index rose 0.07%, and the Smallcap index gained 0.38%.
Analyst Predictions for Key Indices
Sensex and Nifty 50 Outlook
Market experts suggest that after a recent rally, the benchmarks are entering a consolidation phase, with the broader technical structure remaining intact. Mayank Jain of Share.Market noted that the Sensex is holding above the crucial 85,300 breakout level. He identified 85,200–85,300 as a key support zone, with resistance near 85,800 and 86,000 acting as a psychological hurdle.
For the Nifty 50, Nilesh Jain of Centrum Broking pointed out that the index faced stiff resistance near 26,200, forming a small bearish candle. However, momentum indicators like the MACD show a fresh buy signal. Support is now placed at the 26,000 zone, aligning with the 21-day moving average, while upside potential remains towards 26,300.
Ajit Mishra of Religare Broking highlighted that the holiday-shortened week and lack of major domestic triggers will keep global cues in focus. He expects selective positioning and some consolidation, with the overall tone remaining positive. A buy-on-dips strategy is recommended, with a decisive breakout above 26,300 needed for fresh momentum.
Bank Nifty and Derivatives Data
The Bank Nifty appears to be in a holding pattern, oscillating in a defined range. Vatsal Bhuva of LKP Securities stated the index is trading sideways between 58,800 and 59,500 levels. A decisive close above 59,500 could trigger fresh upside, while 58,800 remains crucial support.
The derivatives data reveals a shift in trader sentiment. Dhupesh Dhameja of SAMCO Securities explained that put writers have aggressively added positions, creating a strong support base. The 26,200 strike holds nearly 79.73 lakh call contracts, acting as immediate resistance, while the 26,000 strike has around 1.19 crore put contracts, offering a firm downside cushion. The Put-Call Ratio rising to 1.08 indicates strengthening bullish sentiment.
Market Sentiment and the Road Ahead
The India VIX, a fear gauge, hovering near historic lows around 9.40, continues to comfort the prevailing bullish sentiment. Sectoral participation remained rotational on Tuesday, with metals, FMCG, and energy stocks seeing buying interest, while IT and pharma faced pressure.
As the year draws to a close, analysts believe the market is marking time, awaiting a fresh directional trigger. The consensus suggests that while near-term consolidation is likely, the underlying structure is firm, supported by positive global cues and a buy-on-dips approach among market participants.
Disclaimer: The views and recommendations expressed are those of individual analysts and broking firms. Readers are advised to consult certified experts before making any investment decisions.
