Indian equity benchmarks are poised for a largely flat opening on Tuesday, reflecting investor caution in the face of persistent foreign fund outflows and a depreciating rupee. The market mood is also tempered by ongoing uncertainty surrounding a potential trade agreement between India and the United States.
Market Sentiment and Key Levels
Gift Nifty futures were trading at 26,035, indicating that the Nifty 50 index is likely to begin the trading session near Monday's closing mark of 26,027.3. Both the Nifty 50 and the Sensex have been moving within a tight band for the past two weeks, following the record highs they achieved on December 1. This consolidation phase is attributed to a lack of fresh market triggers and the continued wait for clarity on the India-U.S. trade deal.
Chandan Taparia, Head of Derivatives and Technicals at Motilal Oswal Financial Services Ltd, provided insights into the options activity. He noted that the maximum Call open interest is positioned at the 26100 strike, followed by 26000. On the Put side, the maximum open interest is at 26000, then 25900.
"Call writing is observed at 26100, then 26000 strike, while Put writing is seen at 26000 then 25950 strike," Taparia stated. The option data points towards a broader trading range of 25700 to 26300, with an immediate range expected between 25800 and 26200 levels.
Technical Outlook for Nifty 50 and Bank Nifty
According to Taparia, the Nifty 50 formed a bullish candle on the daily chart for the third consecutive session, signaling that buying interest remains firm at support zones. He emphasized that a decisive move above 26050 could fuel the next upward leg.
"The index now needs to sustain above the 26000 mark to aim for a bounce towards 26150 and then 26250 levels. On the downside, supports are placed at 25900 and 25800 zones," he added.
The Bank Nifty index opened weakly near 59050 but staged a recovery to touch 59500 in the first half of Monday's session. It later consolidated in a narrow 150-point range between 59400 and 59550, maintaining a positive bias overall.
Taparia highlighted that the banking index also formed a bullish daily candle, with buying emerging at lower levels. It is holding comfortably above its 20-day exponential moving average (DEMA). "It must hold above 59250 to move up towards 59750 and then the 60000 mark. Downside support exists at 59250 and 59000 levels," he explained.
Stocks to Watch: Expert Recommendations
Chandan Taparia has recommended three stocks for consideration on Tuesday, December 16, 2025.
Indian Oil Corporation (IOC): A 'Buy' call with a target price of ₹175.50 and a stop loss at ₹175.50. The stock has formed a base around its 50 DEMA support and bounced back on high volume. The Relative Strength Index (RSI) is in a positive position, indicating bullish potential.
IDFC First Bank: A 'Buy' call with a target price of ₹175 and a stop loss at ₹80.60. The stock has broken out of a range on the daily chart with a strong bullish candle. It is respecting its 20 DEMA, with minor dips being purchased. The rising MACD indicator confirms positive momentum.
Ashok Leyland: A 'Buy' call with a target price of ₹175 and a stop loss at ₹161. The stock is in a sustained uptrend and is finding support at its 20 DEMA. The rising ADX line confirms the strength of the current upward trend.
Disclaimer: The views and recommendations above are from individual analysts or broking firms. Investors are advised to consult certified experts before making any investment decisions.
