The Indian equity market is poised for a positive opening on Tuesday, December 23, with benchmark indices likely to extend their winning streak to a third consecutive session. This optimistic sentiment is fueled by bullish trends in global markets, which saw Asian shares rise on Monday following a strong performance on Wall Street.
Market Outlook and Technical Analysis
The positive signal is reinforced by the trends on Gift Nifty, which was trading near the 26,237 level, marking a gain of 26 points or 0.10% from the Nifty futures' previous close. This sets the stage for a green opening for the domestic indices.
On Monday, the market closed sharply higher, supported by a rebound in the rupee and favourable global cues. The Sensex surged 638 points, or 0.75%, to settle at 85,567.48. Similarly, the Nifty 50 advanced 206 points, or 0.79%, to close at 26,172.40. The rally was broad-based, with midcap and smallcap indices outperforming. The BSE Midcap index rose 0.86%, and the Smallcap index gained 1.12%. In a significant wealth creation event, investor wealth increased by approximately ₹4 lakh crore in a single session as the total market capitalisation of BSE-listed companies climbed to ₹475 lakh crore.
Expert Views on Key Indices
Market experts maintain a constructive yet tactical view on the near-term setup. Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated that while the short-term texture is bullish, a 'buy-on-dips and sell-on-rallies' strategy is ideal for day traders. He identified 85,300 and 85,000 as crucial support levels for the Sensex, with 85,700 acting as immediate resistance. A decisive move above 85,700 could propel the index towards the 86,000–86,200 zone.
Derivatives data provides a supportive backdrop with a note of caution. Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, highlighted that the highest call writing is at the 26,200 strike, making it a key resistance. Conversely, strong put writing at the 26,100 strike has established a solid support base. The put-call ratio has climbed to 1.57, reflecting strong bullish positioning but also hinting at possible short-term consolidation. The India VIX, at 9.68, remains favourable for bulls, suggesting stable price action as long as it stays below 12.
Technical analysts are cautiously optimistic on the Nifty 50. Amruta Shinde of Choice Equity Broking noted the index's resilience above the 26,100 level. She sees immediate resistance in the 26,300–26,350 range and support at 26,000–26,050, advocating a selective buy-on-dips approach. Rupak De of LKP Securities pointed to a falling wedge breakout and strong RSI momentum, suggesting the trend remains bullish above 25,900, with 26,315 as immediate resistance. Hrishikesh Yedve of Asit C. Mehta Investment Intermediates advised booking profits near the 26,250–26,325 resistance zone.
Bank Nifty Shows Resilience
The banking index also displayed strength, closing higher at 59,304 after holding above key technical levels. It formed a small green candle and closed above a previous hurdle, indicating improving near-term momentum. According to Hrishikesh Yedve, the next resistance is near 59,550, and a sustainable break above this level could open the path towards 59,800–60,000.
Disclaimer: The views and recommendations above are from individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
