The Indian equity market concluded the final trading session of the week on a negative note, as key benchmarks succumbed to selling pressure in the absence of fresh positive triggers. The market witnessed a cautious tone, influenced by mixed global cues and subdued holiday volumes.
Friday's Market Performance: A Detailed Look
On Friday, December 26, the benchmark indices closed in the red. The Sensex declined by 367 points, or 0.43%, to settle at 85,041.45. Similarly, the Nifty 50 fell by 100 points, or 0.38%, ending the session at 26,042.30. The broader market also witnessed weakness, with the BSE Midcap index edging down 0.18% and the Smallcap index losing 0.34%.
A Silver Lining: Weekly Gains Snap Losing Streaks
Despite the weak Friday close, the weekly picture offered some relief to investors. For the week ended December 26, the indices managed to register modest gains, breaking their recent losing streaks. The Sensex rose 112 points, or 0.13%, snapping a two-week losing run. The Nifty 50 advanced 0.30%, putting an end to its three-week run of losses.
Commenting on the market activity, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, noted that the Nifty 50 ended the holiday-shortened week on a flat-to-positive note near the 26,060 mark. He attributed the lack of sharp directional moves to subdued volumes during the Christmas holidays. Dongre added that while headline performance was muted, the underlying market tone remained constructive with healthy sectoral action.
Technical Outlook and Key Levels for Next Week
According to Ganesh Dongre's analysis, the Nifty continues to trade comfortably above the crucial psychological level of 26,000. It has successfully sustained above the earlier breakout zone of 25,700–25,800, which now acts as a strong support base. Immediate resistance for the Nifty is seen in the 26,300–26,500 band.
Derivatives data supports this range-bound yet positive structure. Significant Call open interest at the 26,200–26,300 strikes indicates strong resistance, while substantial Put open interest at the 25,700–25,600 strikes highlights a well-defined support area. Dongre suggests that any dip towards the 25,800–25,600 zone is likely to attract buying interest, offering stock-specific accumulation opportunities.
Bank Nifty Consolidates Within a Range
The Bank Nifty index remained largely sideways during the week, reflecting a phase of consolidation. Dongre stated that the index continues to find support from steady recoveries in both private and public sector banks. Technically, Bank Nifty is positioned above the crucial support band of 57,500–58,000. On the higher side, it faces stiff resistance in the 60,000–60,500 zone, with a stronger hurdle near the 61,000 mark.
Weekly Stock Recommendations from Analysts
Based on the current technical setup, analysts have identified a few stocks for the upcoming week. These recommendations are for educational purposes and investors are advised to consult certified experts before making decisions.
Sun Pharmaceutical Industries: Consider buying in the range of ₹1700-1720. The target price is set at ₹1780, with a stop loss placed at ₹1670.
AU Small Finance Bank: Consider buying in the range of ₹970-980. The target price is ₹1020, with a stop loss of ₹950.
CG Power and Industrial Solutions: Consider buying in the range of ₹652-658. The target price is ₹685, with a stop loss of ₹640.
Disclaimer: The views and recommendations above are those of individual analysts and are for educational purposes only. Investors are advised to check with certified experts before making any investment decisions.
