Market Wrap

Ahead of the mid-week holiday, Indian equity markets traded in a subdued and directionless manner. The Nifty opened slightly in the red and spent most of the session oscillating within a narrow 100-point band, reflecting a lack of fresh triggers and muted risk appetite. With both domestic and global cues absent, the index closed marginally below the 26,150 mark, signaling a cautious undertone.

On the sectoral front, cement stocks continued to outperform, extending their relative strength seen over the past few sessions. The rebound in key heavyweight names from important support levels indicates improving momentum, supported by expectations of steady infrastructure spending and a gradual demand recovery.

Globally, European markets remained shut due to the Christmas holiday, while Asian markets traded mixed to flat amid thin volumes and year-end positioning. Broader market participation stayed limited, with investors largely preferring to stay on the sidelines during the holiday-shortened week.

What's Ahead

With year-end holidays leading to thinning liquidity, markets are likely to remain range-bound in the near term. Investor focus is expected to gradually shift toward global cues such as US bond yield movements, commodity price trends, and early expectations around 2026 growth and policy direction. While surprise global developments or sharp moves in index heavyweights could spark short-term volatility, overall sentiment is likely to stay cautious until normal trading volumes return.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended marginally lower at 26,142, extending its consolidation phase amid thin pre-holiday volumes. The index continues to trade within a well-defined range, with intraday dips finding support near the 26,120 zone, indicating buying interest at lower levels. Despite mild profit booking in select heavyweights, the RSI hovering near the 60 mark suggests that the broader bullish momentum remains intact. As long as the index holds above the immediate support band of 26,012–25,933, the near-term structure stays constructive, while a decisive move above the resistance zone of 26,268–26,348 would be required to resume an upward trajectory. Until then, range-bound and stock-specific action is likely to dominate.

Bank Nifty

Bank Nifty closed at 59,183, slipping further as selling pressure persisted across most banking names. Technically, the index is now testing its 20-day EMA, a level that has acted as a short-term trend indicator in recent weeks. The RSI easing below 55 points to moderating momentum and signals a phase of consolidation rather than a sharp breakdown. Sustaining above the support zone of 58,925–58,766 will be crucial to avoid deeper corrective moves, while an upside recovery is likely to face resistance near 59,442–59,601. In the near term, the index may continue to oscillate within this range as traders adopt a cautious stance.

Nifty Financial Services

FINNIFTY ended marginally lower at 27,565, reflecting selective pressure in financial heavyweights amid mixed stock-specific action. The index remains in a consolidation setup, with buying emerging on declines but lacking strong follow-through on the upside. Holding above the immediate support zone of 27,397–27,288 will be key to maintaining its broader positive bias, while a sustained breakout above 27,750–27,860 is needed to signal a fresh directional move. Until then, range-bound movement with selective outperformance within the financial space is likely.

Sensex

The SENSEX closed slightly lower at 85,408, mirroring the cautious tone seen across broader markets. Technically, the index continues to trade above its key short-term supports, suggesting that the prevailing uptrend remains intact despite mild profit booking. The support zone of 85,030–84,790 is likely to act as a strong cushion on declines, while resistance near 85,807–86,048 may cap immediate upside attempts. With momentum indicators stable and no signs of aggressive distribution, the SENSEX is expected to consolidate in the near term, awaiting fresh triggers for a decisive move.