Market Recap
On December 24, the Sensex slipped 116 points to close at 85,408.70, while the Nifty 50 fell 35 points to settle at 26,142.10. Profit booking in heavyweight stocks such as Reliance Industries and ICICI Bank contributed to the decline. The overall market capitalisation of BSE-listed firms eased below ₹475 lakh crore, reflecting the cautious sentiment.
Sensex Outlook
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, intraday trading remains non-directional, making level-based strategies more effective. He identified 85,750 as a crucial resistance zone, with immediate support at 85,300. A breakout above 85,750 could push the index towards 86,000–86,200, while a slip below 85,300 may trigger declines towards 85,000.
Nifty 50 Outlook
Analysts maintain a positive bias for Nifty despite ongoing consolidation. Ajit Mishra of Religare Broking advised traders to adopt a buy-on-dips strategy, focusing on sectors such as private banks, metals, and auto. Rajesh Bhosale of Angel One noted that the index continues to form small-bodied candles, signalling consolidation but retaining bullish undertones. He highlighted support around 26,000–26,050 and resistance near 26,300–26,350, beyond which fresh highs could be tested.
Derivatives and Volatility
Amruta Shinde of Choice Equity Broking observed aggressive call writing at the 26,200 strike, reinforcing resistance at higher levels. Heavy put open interest around 26,000 further strengthens this zone as a pivot area. Meanwhile, India VIX declined by 2% to 9.19, indicating reduced volatility and stable market expectations.
Bank Nifty Outlook
The Bank Nifty index is consolidating between 58,800 and 59,550. Hrishikesh Yedve of Asit C. Mehta Investment Intermediates said the daily chart shows selling pressure at higher levels but strong support on declines. A breakout from this range is expected to determine the next directional move.
Investor Strategy
Experts recommend traders remain stock-specific and focus on outperforming sectors rather than broad market calls. Consolidation phases are seen as healthy pauses, offering opportunities to accumulate quality stocks. With holiday-thinned volumes, analysts advise caution but maintain optimism for a retest of all-time highs in the near term.
