Market Wrap

Indian equities witnessed a subdued weekly expiry session on 24 December, marked by low volatility and cautious positioning ahead of the holiday-shortened week. The Nifty opened flat and remained confined within a narrow 100-point band throughout the session, eventually settling unchanged at 26,177 - signalling indecision among market participants.

Sectorally, PSU stocks emerged as clear outperformers, attracting selective buying interest. The underlying technical structure in the PSU space suggests that this relative strength could extend in the near term. Other sectors remained largely muted, reflecting the broader consolidation trend.

Globally, European markets delivered mixed cues. The FTSE and CAC closed largely flat, while Germany’s DAX outperformed with gains of around 0.5%, driven by stock-specific buying. On the macro front, global markets continue to price in easing financial conditions, supported by signs of slowing inflation and a more data-dependent approach from major central banks - factors that are gradually supporting risk appetite.

What's Ahead

With year-end holidays approaching, market liquidity is expected to remain thin, keeping indices range-bound in the near term. Trading activity is likely to be driven by sector rotation and stock-specific developments rather than broad-based trends. Investors will closely track upcoming economic data releases and any fresh commentary from global central banks, as these could influence expectations for early 2026 and set the tone for short-term market direction.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended the session virtually unchanged at 26,177.15, reflecting a phase of consolidation after recent gains. Price action suggests indecision, with the index holding above key short-term moving averages but lacking strong follow-through buying. Selective strength in PSU and financial stocks is helping the index defend lower levels, while selling pressure in IT and telecom continues to cap upside. Market breadth remains slightly negative, indicating limited participation. As long as Nifty sustains above the immediate support zone near 26,000–25,950, the broader structure remains sideways-to-positive, though a decisive breakout will require strength beyond the recent range.

Bank Nifty

Bank Nifty closed marginally lower at 59,299.55 after failing to sustain early gains, signalling mild exhaustion near higher levels. The index is currently hovering around its 20-day EMA, which is acting as a crucial pivot. Momentum indicators are improving, with RSI gradually moving toward the 55 zone, hinting at a potential base formation. However, continued weakness in private banking heavyweights is limiting upside traction. Immediate support is placed at 59,041 followed by 58,882, while a sustained move above 59,558 could open the door for a retest of 59,700+ levels in the near term.

Nifty Financial Services

The Nifty Financial Services Index outperformed, closing higher at 27,584.55 and extending its positive momentum for the second consecutive session. The index is witnessing strong rotational buying, particularly in NBFCs and PSU financial names, which is improving overall breadth and structure. Technically, FinNifty remains well supported above its short-term averages, keeping the trend positive. As long as the index holds above the support band of 27,405–27,296, the bias remains bullish, with resistance placed at 27,758 and 27,867, where some profit-taking could emerge.

Sensex

The BSE Sensex closed marginally lower at 85,524.84, mirroring the consolidation seen in broader markets. The index continues to trade in a narrow range, with buying support from select FMCG, metal, and banking stocks offset by weakness in IT and telecom heavyweights. Technically, the Sensex remains above its key short-term support levels, suggesting no major breakdown so far. Immediate support is seen at 85,150 followed by 84,910, while resistance lies at 85,928 and 86,168. A breakout on either side of this range is likely to dictate the next directional move.