Market Wrap

Indian equity markets wrapped up the December F&O expiry session with little fanfare, ending the day almost flat near the 25,950 mark. The benchmark indices spent most of the session moving within a narrow range, reflecting cautious positioning rather than aggressive buying or selling. Despite muted spot action, the December futures contract closed with modest gains of around 0.26%, pointing to underlying stability and the absence of meaningful distribution pressure.

Sectorally, PSU banks clearly outperformed the broader market. The NIFTY PSU BANK index surged nearly 1.69%, supported by improving balance sheets, steady credit growth expectations, and relatively attractive valuations versus private sector peers. Price action across major PSU bank stocks continues to signal relative strength, especially in a range-bound market environment.

Global cues remained supportive through the session. European markets traded firmly in the green, with Germany’s DAX gaining around 0.62%, indicating steady risk appetite as investors approach year-end. On the macro front, markets continued to digest global signals around interest rate trajectories, easing yet stabilizing inflation trends, and cautious optimism on global growth heading into the new year.

What's Ahead

With just one trading session left in the calendar year, market activity is likely to remain subdued due to year-end positioning and lower volumes. That said, investor focus is already shifting toward January triggers - most notably the Q3 earnings season, global central bank commentary, and early signals on 2026 growth expectations.

PSU banks could continue to attract rotational inflows if benchmark indices remain range-bound, while global cues particularly US bond yield movements and European growth data will be crucial in shaping sentiment as markets transition into the new calendar year.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 continues to consolidate near the 25,950 zone, ending virtually unchanged at 25,938.85 amid low year-end volumes and a lack of fresh triggers. Intraday price action remained range-bound between 25,878 and 25,976, reinforcing the ongoing consolidation phase. The RSI hovering near the 50 mark signals neutral momentum, suggesting neither bulls nor bears have a clear edge at this stage. As long as the index holds above the immediate support band of 25,812–25,732, the broader structure remains intact, while a decisive breakout above 26,068–26,147 would be required to trigger fresh upside momentum. Until then, the index is likely to remain range-bound with stock-specific action.

Bank Nifty

Bank Nifty closed higher at 59,171.25, extending its recovery after five sessions of consolidation with a mild downward bias. The index’s ability to close above its 20-day EMA is a constructive technical signal, indicating improving short-term sentiment. RSI has inched higher but remains near the neutral 50 zone, suggesting that momentum is improving but not yet decisive. Immediate support is placed at 58,975–58,853, which should act as a cushion on minor pullbacks, while a sustained move above the 59,368–59,489 resistance zone could open the door for further upside. Overall, the bias has turned mildly positive with a buy-on-dips approach.

Nifty Financial Services

The NIFTY Financial Services index ended marginally higher at 27,382.80, reflecting selective accumulation in NBFCs, insurers, and large private banks. The index continues to trade in a tight consolidation band, indicating balance between buying and selling pressure. With breadth mildly positive, the structure remains stable as long as the index holds above the support zone of 27,249–27,165. On the upside, a breakout above 27,517–27,600 would be needed to confirm renewed bullish momentum. Until then, the index is likely to witness rotational moves within the financial space rather than a broad-based trend.

Sensex

The BSE Sensex closed marginally lower at 84,675.08, continuing its sideways movement amid mixed sectoral cues. Gains in metals, autos, and select financials were offset by weakness in IT, FMCG, and consumer stocks, keeping the index range-bound. Technically, the index is holding above its near-term support at 84,286–84,054, which preserves the broader bullish structure despite short-term consolidation. On the upside, resistance is placed at 85,035–85,267, and a decisive close above this zone would be required to resume the upward trajectory. Until then, the Sensex is expected to remain in a consolidation phase with limited directional conviction.