Indian equity benchmarks snapped a four-session losing streak to close higher on Friday, December 19, 2025, buoyed by a stable rupee, positive global cues, and the Bank of Japan's expected policy outcome. The rally was broad-based, with midcap and smallcap indices leading the gains.
Benchmarks Stage a Strong Comeback
The S&P BSE Sensex climbed 448 points, or 0.53%, to settle at 84,929.36. The broader Nifty 50 index advanced 151 points, or 0.58%, to close at 25,966.40, decisively reclaiming the crucial 25,900 level. The buying momentum was not confined to large caps. Broader markets outperformed significantly, with the BSE Midcap index gaining 1.26% and the Smallcap index rising 1.25%.
Ponmudi R, CEO of Enrich Money, attributed the rebound to broad-based sectoral buying. He noted the recovery was supported by a sharp pullback in the Indian rupee from its record lows and the return of foreign portfolio investors (FPIs), who turned net buyers over the past two sessions.
Technical Outlook for Key Indices
Nifty 50: Buy-on-Dips Strategy Advised
Hitesh Tailor, Research Analyst at Choice Broking, observed notable volatility in the Nifty last week. The index hit a high of 26,047.15 before profit-booking triggered a corrective phase down to a weekly low of 25,726.30. It found strong buying support in the 25,700–25,800 demand zone before staging a steady recovery.
"As long as it sustains above these levels, market sentiment is expected to remain constructive and upward-biased," Tailor stated. He identified immediate resistance at 26,000, followed by 26,200 and 26,400. On the downside, support is seen at 25,900 and 25,800, with a break below 25,700 likely to attract selling pressure. Given the current structure, a buy-on-dips strategy remains appropriate, though traders should maintain strict stop-losses due to prevailing volatility.
Sensex: Eyes Breakout Above 85,000
According to Ponmudi R, the Sensex continues to trade in a tight consolidation range just below its all-time highs, supported by a well-defined ascending trendline. A convincing breakout above the 85,000 mark could trigger the next upward move towards 85,500–86,000. On the downside, the 84,500–84,150 zone remains a strong demand area where institutional buying interest consistently emerges.
Bank Nifty: Shows Resilience at Support
The Bank Nifty started the week positively, reaching a weekly high of 59,533. However, profit-booking led to a decline over two sessions, dragging the index to a weekly low of 58,712.70, where strong buying interest surfaced.
Hitesh Tailor pointed out that the index staged a sharp recovery to close the week at 59,069.20, highlighting resilience near key supports. The weekly chart formed a Doji candlestick pattern, reflecting indecision and suggesting the possibility of short-term consolidation. He advised investors to track 58,700 as crucial support and 59,500 as key resistance for near-term directional cues.
Market Sentiment and the Road Ahead
The Friday rally provided much-needed relief to investors after a corrective phase. The combination of domestic currency stability, supportive global signals, and the absence of negative surprises from major central banks helped restore confidence. As the year 2025 draws to a close, market participants will closely watch the identified technical levels for the final trading week of December. Analysts recommend a constructive yet disciplined approach, emphasizing the importance of stop-losses in a volatile environment.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
