Indian equity benchmarks concluded the trading session on Friday, December 26, in negative territory, succumbing to profit-booking and a lack of positive catalysts. Investor sentiment remained cautious against a backdrop of mixed global cues and thin year-end trading volumes.
Market Performance: A Weekly Rebound Despite Daily Loss
The benchmark S&P BSE Sensex declined by 367 points, or 0.43%, to settle at 85,041.45. Similarly, the broader Nifty 50 index dropped 100 points, or 0.38%, closing the day at 26,042.30.
The pressure extended to the broader markets as well. The BSE Midcap index eased by 0.18%, while the Smallcap index witnessed a slightly steeper decline of 0.34%.
Despite the day's losses, the markets managed to secure modest gains on a weekly basis, breaking their recent downtrend. For the week ended December 26, the Sensex rose 112 points, or 0.13%, ending its two-week losing streak. The Nifty 50 advanced by 0.30%, snapping a three-week period of decline.
Expert Technical Outlook for Nifty and Bank Nifty
Commenting on the Nifty's trajectory, Sumeet Bagadia, Executive Director at Choice Broking, noted a bearish daily candle formation. "The index broke below intraday support near 26,050, reflecting a loss of upward momentum," he stated. He pointed to intraday patterns showing range-bound swings with lower highs, signaling short-term consolidation.
Bagadia identified immediate resistance for the Nifty in the 26,150–26,200 zone. Key support is placed around 25,850–25,900, with broader demand near 26,850–25,800 likely to attract buyers if tested.
The banking sector index, Bank Nifty, closed lower around 59,011, retreating from recent highs. Bagadia observed that its daily chart showed a bearish candle, suggesting consolidation. However, he highlighted that the price held above the 200-hour Exponential Moving Average (EMA), which acts as a crucial support.
For Bank Nifty, immediate resistance is seen near 59,300–59,400. Support is placed around the 200-hour EMA zone of 58,990 and a broader band of 58,700–58,800, which could serve as accumulation areas for traders.
Stocks to Watch: Three Buy Recommendations
Sumeet Bagadia has recommended three stocks for consideration on Monday, December 29:
- MMTC: Buy at ₹64.24, Target Price: ₹70, Stop Loss: ₹63.
- Hardwyn India: Buy at ₹17.82, Target Price: ₹19.19, Stop Loss: ₹17.15.
- Sagility: Buy at ₹52.63, Target Price: ₹56.5, Stop Loss: ₹50.5.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are strongly advised to consult with certified experts before making any investment decisions.
