Nifty Microcap 250

As long as the Bank Nifty trades below 59,500, consolidation may continue, with support at 59,000, followed by 58,900–58,800 being a key support area. However, above this, a move toward 59,800–60,000 cannot be ruled out.

shorts/business/trading-plan-will-nifty-50-defend-26-100-bank-nifty-hold-above-59-000-amid-ongoing-consolidation

The Nifty 50 continued to be supported by healthy momentum and technical indicators, with the VIX reaching a new closing low, though the index consolidated with a negative bias. The index needs to defend the 26,100–26,000 support zone for a move toward 26,250–26,400, however, below it, 25,900-25,800 can act as key support. Meanwhile, as long as the Bank Nifty trades below 59,500, consolidation may continue, with support at 59,000, followed by 58,900–58,800 being a key support area. However, above this, a move toward 59,800–60,000 cannot be ruled out, experts said.

On December 24, the Nifty 50 slipped 35 points to 26,142, while the Bank Nifty dropped 116 points to 59,184 after consolidation. Market breadth was in favour of bears, with 1,676 shares declining compared to 1,169 advancing shares on the NSE.

Nifty Outlook and Strategy

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

Despite sideways movement over the last two sessions, the broader trend of the index remains firmly bullish, as Nifty continues to hover close to its all-time high levels. Such price behaviour near record highs typically suggests underlying strength, with market participants choosing to consolidate gains rather than engage in aggressive profit booking.

Adding to the noteworthy developments, India VIX slipped to its lowest-ever closing level on Wednesday, highlighting a sharp compression in volatility and underscoring the prevailing sense of calm and complacency among traders. Historically, such low-volatility phases often precede a directional expansion, making the current setup particularly important to monitor.

While the frontline indices have largely remained range-bound over the past couple of sessions, the action in the broader market tells a different story. The Nifty Smallcap 100 index has witnessed strong outperformance, driven by a sharp pullback rally in several previously beaten-down small-cap stocks.

Going ahead, the 26,200–26,250 zone is expected to act as a crucial hurdle for Nifty. A sustained move above 26,250 could trigger a strong upside rally toward 26,400, with further potential to test 26,550 in the short term. On the downside, the 20-day EMA, placed around 26,000–25,950, is likely to offer support in the event of any immediate pullback.

Key Resistance: 26,200, 26,250, 26,400, 26,550

Key Support: 26,000, 25,950

Strategy: Buy Nifty Futures at around 26,100–26,200, with a stop-loss of 26,030, targeting 26,400.

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

The Nifty index ended its three-day winning streak, forming a small bearish candle with a long upper shadow that resembles a shooting star pattern, indicating resistance near the 26,200 level. Earlier, the index had witnessed a breakaway gap around 26,000, which aligns with the 21-day moving average and is now expected to act as a strong support zone.

On the indicator front, the MACD has turned bullish with a fresh buy crossover, suggesting potential short-term upside. The broader trend remains positive as long as the index holds above the 25,800 mark.

(Spot levels)
Key Resistance: 26,240, 26,350

Key Support: 26,020, 25,890

Strategy: Buy Nifty Futures in the range of 26,130–26,160, with a stop-loss of 26,010, targeting 26,400.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty remained sideways throughout the session on Wednesday, as traders largely stayed on the sidelines ahead of the holiday. Overall, the trend continues to remain positive, as the index has sustained above the crucial support level of 26,000. Additionally, the index is holding above its critical moving averages, confirming a short-term uptrend.

On the higher end, the index may move towards 26,310; a decisive breakout above this level could propel it further towards 26,600 in the short term. A buy-on-dips strategy is likely to remain favourable as long as the index holds above 26,000.

Key Resistance: 26,310, 26,600

Key Support: 26,000, 26,030

Strategy: Buy Nifty 26,150 Call of December 30 expiry at Rs 93, with a stop-loss of Rs 65, targeting Rs 140.

Sumeet Bagadia, Executive Director at Choice Broking

Immediate resistance for the Nifty 50 is placed in the 26,250–26,300 zone, while key supports are seen at 25,950–26,000. The daily RSI at 57.18 is trending downwards, suggesting a mild loss of momentum and caution in the near term.

Derivatives data shows aggressive call writing at 26,200 and strong put open interest near 26,000, reinforcing this area as a crucial support and pivot. Holding above 26,000 keeps a selective buy-on-dips strategy intact, with strict stop-losses at 25,920.

Key Resistance: 26,250, 26,300

Key Support: 25,950, 26,000

Strategy: Buy Nifty Futures on dips near 26,150 levels for a target of 26,300 levels, with a stop-loss of 26,050 on a closing basis.

Bank Nifty - Outlook and Positioning

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

In the first three trading sessions of this truncated week, the Nifty Bank index traded within a narrow range of just 360 points, marking the lowest trading range in the past couple of months. The formation of small-bodied candles during this period indicates clear indecisiveness among market participants. The index continues to hover above its key moving averages. Notably, the daily RSI has also been oscillating within a sideways band for the last 12 trading sessions,
reinforcing the lack of trend strength.

Going ahead, the 59,400–59,500 zone is likely to act as a significant hurdle for the index. A sustained move above 59,500 could trigger a sharp upside rally toward 60,000, followed by 60,500 in the short term. On the downside, the 58,900–58,800 zone is expected to serve as a crucial support area in case of any decline.

Key Resistance: 59,400, 59,500, 60,000, 60,500

Key Support: 58,900, 58,800

Strategy: Buy Bank Nifty Futures at around 60,400–60,500, with a stop-loss of 60,000, targeting 61,000–61,200.

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

Bank Nifty encountered resistance near the 59,500 level and formed a bearish candle on the daily chart. The index also slipped below its 21-day moving average, positioned around 59,300, which is now likely to act as immediate resistance. A sustained move above 59,500 could open the door for further upside toward the 60,500 zone, supported by possible short covering. Momentum indicators and weekly oscillators continue to reflect underlying strength, maintaining a bullish bias.

(Spot levels)
Key Resistance: 59,500, 59,800

Key Support: 58,900, 58,600

Strategy: Traders may consider initiating long positions in Bank Nifty Futures in the range of 59,100–59,200, with a stop-loss placed below 58,850. A pullback rally toward the 59,800 region remains a strong possibility.

Rupak De, Senior Technical Analyst at LKP Securities

Bank Nifty witnessed a retracement during the session on Wednesday, as traders preferred to remain cautious ahead of the holiday. However, the overall trend continues to favour the bulls, with the index sustaining above the wedge breakout level.

Additionally, Bank Nifty remains in a positive trend, as it closed above the 21 EMA. In the near term, a buy-on-dips strategy is likely to remain favourable for traders, with support placed in the 59,000–58,800 zone. A breach below 58,800 could attract fresh selling pressure.

Key Resistance: 59,300, 59,500

Key Support: 59,000, 58,800

Strategy: Buy Bank Nifty 59,400 Call of December 30 expiry at Rs 136, with a stop-loss of Rs 30, targeting Rs 260.

Sumeet Bagadia, Executive Director at Choice Broking

The Bank Nifty price action points to profit booking after the recent rally and reflects a cautious undertone in banking stocks. Despite the decline, buying interest near lower levels indicates that the broader trend remains stable for now. Immediate resistance is placed in the 59,400–59,500 zone, and a sustained move above this range will be required to revive bullish momentum.

On the downside, supports at 58,800 and 58,900 are critical for maintaining near-term stability in the index. On the daily charts, the RSI stands at 53.55 and is trending downward, suggesting a gradual loss of momentum and the possibility of short-term consolidation rather than a sharp reversal.

Key Resistance: 59,400, 59,500

Key Support: 58,800, 58,900

Strategy: Buy Bank Nifty Futures on dips near 59,200 levels for a target of 59,600–59,800 levels, with a stop-loss of 58,900 on a closing basis.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

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Trading Plan: Will Nifty 50 defend 26,100, Bank Nifty hold above 59,000 amid ongoing consolidation?

The Nifty 50 continued to be supported by healthy momentum and technical indicators, with the VIX reaching a new closing low, though the index consolidated with a negative bias. The index needs to defend the 26,100–26,000 support zone for a move toward 26,250–26,400, however, below it, 25,900-25,800 can act as key support. Meanwhile, as long as the Bank Nifty trades below 59,500, consolidation may continue, with support at 59,000, followed by 58,900–58,800 being a key support area. However, above this, a move toward 59,800–60,000 cannot be ruled out, experts said.

On December 24, the Nifty 50 slipped 35 points to 26,142, while the Bank Nifty dropped 116 points to 59,184 after consolidation. Market breadth was in favour of bears, with 1,676 shares declining compared to 1,169 advancing shares on the NSE.

Nifty Outlook and Strategy

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

Despite sideways movement over the last two sessions, the broader trend of the index remains firmly bullish, as Nifty continues to hover close to its all-time high levels. Such price behaviour near record highs typically suggests underlying strength, with market participants choosing to consolidate gains rather than engage in aggressive profit booking.

Adding to the noteworthy developments, India VIX slipped to its lowest-ever closing level on Wednesday, highlighting a sharp compression in volatility and underscoring the prevailing sense of calm and complacency among traders. Historically, such low-volatility phases often precede a directional expansion, making the current setup particularly important to monitor.

While the frontline indices have largely remained range-bound over the past couple of sessions, the action in the broader market tells a different story. The Nifty Smallcap 100 index has witnessed strong outperformance, driven by a sharp pullback rally in several previously beaten-down small-cap stocks.

Going ahead, the 26,200–26,250 zone is expected to act as a crucial hurdle for Nifty. A sustained move above 26,250 could trigger a strong upside rally toward 26,400, with further potential to test 26,550 in the short term. On the downside, the 20-day EMA, placed around 26,000–25,950, is likely to offer support in the event of any immediate pullback.

Key Resistance: 26,200, 26,250, 26,400, 26,550

Key Support: 26,000, 25,950

Strategy: Buy Nifty Futures at around 26,100–26,200, with a stop-loss of 26,030, targeting 26,400.

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

The Nifty index ended its three-day winning streak, forming a small bearish candle with a long upper shadow that resembles a shooting star pattern, indicating resistance near the 26,200 level. Earlier, the index had witnessed a breakaway gap around 26,000, which aligns with the 21-day moving average and is now expected to act as a strong support zone.

On the indicator front, the MACD has turned bullish with a fresh buy crossover, suggesting potential short-term upside. The broader trend remains positive as long as the index holds above the 25,800 mark.

(Spot levels)
Key Resistance: 26,240, 26,350

Key Support: 26,020, 25,890

Strategy: Buy Nifty Futures in the range of 26,130–26,160, with a stop-loss of 26,010, targeting 26,400.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty remained sideways throughout the session on Wednesday, as traders largely stayed on the sidelines ahead of the holiday. Overall, the trend continues to remain positive, as the index has sustained above the crucial support level of 26,000. Additionally, the index is holding above its critical moving averages, confirming a short-term uptrend.

On the higher end, the index may move towards 26,310; a decisive breakout above this level could propel it further towards 26,600 in the short term. A buy-on-dips strategy is likely to remain favourable as long as the index holds above 26,000.

Key Resistance: 26,310, 26,600

Key Support: 26,000, 26,030

Strategy: Buy Nifty 26,150 Call of December 30 expiry at Rs 93, with a stop-loss of Rs 65, targeting Rs 140.

Sumeet Bagadia, Executive Director at Choice Broking

Immediate resistance for the Nifty 50 is placed in the 26,250–26,300 zone, while key supports are seen at 25,950–26,000. The daily RSI at 57.18 is trending downwards, suggesting a mild loss of momentum and caution in the near term.

Derivatives data shows aggressive call writing at 26,200 and strong put open interest near 26,000, reinforcing this area as a crucial support and pivot. Holding above 26,000 keeps a selective buy-on-dips strategy intact, with strict stop-losses at 25,920.

Key Resistance: 26,250, 26,300

Key Support: 25,950, 26,000

Strategy: Buy Nifty Futures on dips near 26,150 levels for a target of 26,300 levels, with a stop-loss of 26,050 on a closing basis.

Bank Nifty - Outlook and Positioning

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

In the first three trading sessions of this truncated week, the Nifty Bank index traded within a narrow range of just 360 points, marking the lowest trading range in the past couple of months. The formation of small-bodied candles during this period indicates clear indecisiveness among market participants. The index continues to hover above its key moving averages. Notably, the daily RSI has also been oscillating within a sideways band for the last 12 trading sessions,
reinforcing the lack of trend strength.

Going ahead, the 59,400–59,500 zone is likely to act as a significant hurdle for the index. A sustained move above 59,500 could trigger a sharp upside rally toward 60,000, followed by 60,500 in the short term. On the downside, the 58,900–58,800 zone is expected to serve as a crucial support area in case of any decline.

Key Resistance: 59,400, 59,500, 60,000, 60,500

Key Support: 58,900, 58,800

Strategy: Buy Bank Nifty Futures at around 60,400–60,500, with a stop-loss of 60,000, targeting 61,000–61,200.

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

Bank Nifty encountered resistance near the 59,500 level and formed a bearish candle on the daily chart. The index also slipped below its 21-day moving average, positioned around 59,300, which is now likely to act as immediate resistance. A sustained move above 59,500 could open the door for further upside toward the 60,500 zone, supported by possible short covering. Momentum indicators and weekly oscillators continue to reflect underlying strength, maintaining a bullish bias.

(Spot levels)
Key Resistance: 59,500, 59,800

Key Support: 58,900, 58,600

Strategy: Traders may consider initiating long positions in Bank Nifty Futures in the range of 59,100–59,200, with a stop-loss placed below 58,850. A pullback rally toward the 59,800 region remains a strong possibility.

Rupak De, Senior Technical Analyst at LKP Securities

Bank Nifty witnessed a retracement during the session on Wednesday, as traders preferred to remain cautious ahead of the holiday. However, the overall trend continues to favour the bulls, with the index sustaining above the wedge breakout level.

Additionally, Bank Nifty remains in a positive trend, as it closed above the 21 EMA. In the near term, a buy-on-dips strategy is likely to remain favourable for traders, with support placed in the 59,000–58,800 zone. A breach below 58,800 could attract fresh selling pressure.

Key Resistance: 59,300, 59,500

Key Support: 59,000, 58,800

Strategy: Buy Bank Nifty 59,400 Call of December 30 expiry at Rs 136, with a stop-loss of Rs 30, targeting Rs 260.

Sumeet Bagadia, Executive Director at Choice Broking

The Bank Nifty price action points to profit booking after the recent rally and reflects a cautious undertone in banking stocks. Despite the decline, buying interest near lower levels indicates that the broader trend remains stable for now. Immediate resistance is placed in the 59,400–59,500 zone, and a sustained move above this range will be required to revive bullish momentum.

On the downside, supports at 58,800 and 58,900 are critical for maintaining near-term stability in the index. On the daily charts, the RSI stands at 53.55 and is trending downward, suggesting a gradual loss of momentum and the possibility of short-term consolidation rather than a sharp reversal.

Key Resistance: 59,400, 59,500

Key Support: 58,800, 58,900

Strategy: Buy Bank Nifty Futures on dips near 59,200 levels for a target of 59,600–59,800 levels, with a stop-loss of 58,900 on a closing basis.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Derivative data suggested that support for the Nifty 50 has shifted higher to the 26,100–26,000 zone.

shorts/business/trade-setup-for-december-26-top-15-things-to-know-before-the-opening-bell-2

The Nifty 50 saw consolidation for another session and closed flat with a negative bias on December 24, especially after the recent rally, but continued its higher-high-higher-low formation and sustained well above all key moving averages. According to experts, the consolidation may continue for one or two more sessions; however, they remain hopeful of an upward journey toward the 26,300 and 26,500 levels in the short term, given the positive technical and momentum indicators. Meanwhile, derivative data suggested that support has shifted higher to the 26,100–26,000 zone.

<img class="alignnone size-full wp-image-13742560 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225170222_Image125122025.jpg" alt="Image125122025" width="1281" height="646" />

Here are 15 data points we have collated to help you spot profitable trades:

1) Key Levels For The <a href="https://www.moneycontrol.com/indian-indices/nifty-50-9.html" target="_blank">Nifty 50</a> (26,142)

Resistance based on pivot points: 26,210, 26,237, and 26,281

Support based on pivot points: 26,124, 26,097, and 26,054

Special Formation: The Nifty 50 formed a small bearish candle with an upper shadow on the daily timeframe but held the previous day’s closing level, indicating a continuation of a breather for another session after the recent rally. The index sustained well above all key moving averages as well as the midline of the Bollinger Bands. The RSI also stayed above the reference line, though it dropped slightly to 57.18, while the MACD turned positive with the histogram rising further. The Stochastic RSI also sustained a bullish crossover. All this indicates continued strength with short-term consolidation.

2) Key Levels For The <a href="https://www.moneycontrol.com/indian-indices/nifty-bank-23.html" target="_blank">Bank Nifty</a> (59,184)

Resistance based on pivot points: 59,397, 59,482, and 59,620

Support based on pivot points: 59,122, 59,038, and 58,900

Resistance based on Fibonacci retracement: 59,468, 60,895

Support based on Fibonacci retracement: 58,983, 58,635

Special Formation: The Bank Nifty formed a bearish candle with an upper shadow on the daily charts with lower volume and continued to hover around short-term moving averages and the midline of the Bollinger Bands, while sustaining above the falling resistance trendline, which has now turned into support. The index moved closer to 59,500 before closing 116 points lower. The RSI slightly turned bearish, but the Stochastic RSI still held above the reference line. The MACD maintained a bearish crossover, but the weakness in the histogram faded further for the fourth consecutive session. All this indicates limited downside and possible base formation.

<img class="alignnone size-full wp-image-13742561 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225170242_Image225122025.jpg" alt="Image225122025" width="1281" height="646" />

3) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Nifty Call Options Data</a>

According to the monthly options data, the maximum Call open interest was seen at the 26,200 strike (with 1.34 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 26,500 strike (1.11 crore contracts) and 26,400 strike (1.03 crore contracts).

Maximum Call writing was observed at the 26,200 strike, which saw an addition of 58.54 lakh contracts, followed by the 26,400 and 26,250 strikes, which added 52.13 lakh and 41.83 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,800 strike, which shed 1.31 lakh contracts, followed by the 25,900 and 25,700 strikes, which shed 1.18 lakh and 77,475 contracts, respectively.

<img class="alignnone size-full wp-image-13742562 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225170301_Image425122025.jpg" alt="Image425122025" width="1259" height="339" />

4) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Nifty Put Options Data</a>

On the Put side, the 26,000 strike holds the maximum Put open interest (with 1.52 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 25,500 strike (79.52 lakh contracts) and the 25,800 strike (76.9 lakh contracts).

The maximum Put writing was placed at the 26,000 strike, which saw an addition of 33.52 lakh contracts, followed by the 25,500 and 26,100 strikes, which added 23.77 lakh and 21.19 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,400 strike, which shed 2.47 lakh contracts, followed by the 26,500 and 26,700 strikes, which shed 68,025 and 16,125 contracts, respectively.

<img class="alignnone size-full wp-image-13742563 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225170319_Image525122025.jpg" alt="Image525122025" width="1246" height="340" />

5) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Bank Nifty Call Options Data</a>

According to the monthly options data, the 59,500 strike holds the maximum Call open interest, with 24.1 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 60,000 strike (19.91 lakh contracts) and the 61,000 strike (11.75 lakh contracts).

Maximum Call writing was observed at the 59,500 strike (with the addition of 3.95 lakh contracts), followed by the 61,000 strike ((2.84 lakh contracts) and 59,300 strike (1.87 lakh contracts). The maximum Call unwinding was seen at the 60,800 strike, which shed 1.6 lakh contracts, followed by the 60,100 and 59,600 strikes, which shed 1.46 lakh and 96,425 contracts, respectively.

<img class="alignnone size-full wp-image-13742564 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225170336_Image625122025.jpg" alt="Image625122025" width="1258" height="341" />

6) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Bank Nifty Put Options Data</a>

On the Put side, the maximum Put open interest was seen at the 59,000 strike (with 13.79 lakh contracts), which can act as a key support level for the index. This was followed by the 59,500 strike (11.14 lakh contracts) and the 58,500 strike (9.86 lakh contracts).

The maximum Put writing was placed at the 59,100 strike (which added 45,010 contracts), followed by the 58,300 strike (37,310 contracts) and the 57,900 strike (37,520 contracts). The maximum Put unwinding was seen at the 58,000 strike, which shed 1.93 lakh contracts, followed by the 57,500 and 59,500 strikes, which shed 1.77 lakh and 1.74 lakh contracts, respectively.

<img class="alignnone size-full wp-image-13742565 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225170354_Image725122025.jpg" alt="Image725122025" width="1256" height="341" />

7) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Funds Flow (Rs crore)</a>

<img class="alignnone size-full wp-image-13742608 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225200911_Image2925122025.jpg" alt="Image2925122025" width="700" height="414" />

8) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Put-Call Ratio</a>

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 0.98 on December 24, compared to 1.14 in the previous session.

The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.

<img class="alignnone size-full wp-image-13742567 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225170435_Image925122025.jpg" alt="Image925122025" width="1241" height="501" />

9) <a href="https://www.moneycontrol.com/indian-indices/india-vix-36.html" target="_blank">India VIX</a>

The India VIX, also known as the fear gauge, remained in the lower zone, falling 2 percent to hit a new closing low of 9.19. This signalled complacency in the market and comfort for bulls, but also indicated the need for alertness due to the possibility of sharp market moves.

<img class="alignnone size-full wp-image-13742568 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225170454_Image325122025.jpg" alt="Image325122025" width="1281" height="646" />

10) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Long Build-up (28 Stocks)</a>

A long build-up was seen in 28 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.

<img class="alignnone size-full wp-image-13742603 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225200544_Image2425122025.jpg" alt="Image2425122025" width="700" height="700" />

11) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Long Unwinding (71 Stocks)</a>

71 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

<img class="alignnone size-full wp-image-13742604 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225200621_Image2525122025.jpg" alt="Image2525122025" width="700" height="700" />

12) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Short Build-up (69 Stocks)</a>

69 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

<img class="alignnone size-full wp-image-13742605 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225200658_Image2625122025.jpg" alt="Image2625122025" width="700" height="612" />

13) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Short-Covering (44 Stocks)</a>

44 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

<img class="alignnone size-full wp-image-13742606 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225200745_Image2725122025.jpg" alt="Image2725122025" width="700" height="700" />

14) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">High Delivery Trades</a>

Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.

<img class="alignnone size-full wp-image-13742607 aligncenter" src="https://images.moneycontrol.com/static-mcnews/2025/12/20251225200832_Image2825122025.jpg" alt="Image2825122025" width="700" height="729" />

15) <a href="https://www.moneycontrol.com/markets/fno-market-snapshot" target="_blank">Stocks Under F&amp;O Ban</a>

Securities banned under the F&amp;O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.

Stocks added to F&amp;O ban: Nil

Stocks retained in F&amp;O ban: Sammaan Capital

Stocks removed from F&amp;O ban: Nil

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Trade setup for December 26: Top 15 things to know before the opening bell

The Nifty 50 saw consolidation for another session and closed flat with a negative bias on December 24, especially after the recent rally, but continued its higher-high-higher-low formation and sustained well above all key moving averages. According to experts, the consolidation may continue for one or two more sessions; however, they remain hopeful of an upward journey toward the 26,300 and 26,500 levels in the short term, given the positive technical and momentum indicators. Meanwhile, derivative data suggested that support has shifted higher to the 26,100–26,000 zone.



Here are 15 data points we have collated to help you spot profitable trades:

1) Key Levels For The Nifty 50 (26,142)

Resistance based on pivot points: 26,210, 26,237, and 26,281

Support based on pivot points: 26,124, 26,097, and 26,054

Special Formation: The Nifty 50 formed a small bearish candle with an upper shadow on the daily timeframe but held the previous day’s closing level, indicating a continuation of a breather for another session after the recent rally. The index sustained well above all key moving averages as well as the midline of the Bollinger Bands. The RSI also stayed above the reference line, though it dropped slightly to 57.18, while the MACD turned positive with the histogram rising further. The Stochastic RSI also sustained a bullish crossover. All this indicates continued strength with short-term consolidation.

2) Key Levels For The Bank Nifty (59,184)

Resistance based on pivot points: 59,397, 59,482, and 59,620

Support based on pivot points: 59,122, 59,038, and 58,900

Resistance based on Fibonacci retracement: 59,468, 60,895

Support based on Fibonacci retracement: 58,983, 58,635

Special Formation: The Bank Nifty formed a bearish candle with an upper shadow on the daily charts with lower volume and continued to hover around short-term moving averages and the midline of the Bollinger Bands, while sustaining above the falling resistance trendline, which has now turned into support. The index moved closer to 59,500 before closing 116 points lower. The RSI slightly turned bearish, but the Stochastic RSI still held above the reference line. The MACD maintained a bearish crossover, but the weakness in the histogram faded further for the fourth consecutive session. All this indicates limited downside and possible base formation.



3) Nifty Call Options Data

According to the monthly options data, the maximum Call open interest was seen at the 26,200 strike (with 1.34 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 26,500 strike (1.11 crore contracts) and 26,400 strike (1.03 crore contracts).

Maximum Call writing was observed at the 26,200 strike, which saw an addition of 58.54 lakh contracts, followed by the 26,400 and 26,250 strikes, which added 52.13 lakh and 41.83 lakh contracts, respectively. The maximum Call unwinding was seen at the 25,800 strike, which shed 1.31 lakh contracts, followed by the 25,900 and 25,700 strikes, which shed 1.18 lakh and 77,475 contracts, respectively.



4) Nifty Put Options Data

On the Put side, the 26,000 strike holds the maximum Put open interest (with 1.52 crore contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 25,500 strike (79.52 lakh contracts) and the 25,800 strike (76.9 lakh contracts).

The maximum Put writing was placed at the 26,000 strike, which saw an addition of 33.52 lakh contracts, followed by the 25,500 and 26,100 strikes, which added 23.77 lakh and 21.19 lakh contracts, respectively. The maximum Put unwinding was seen at the 25,400 strike, which shed 2.47 lakh contracts, followed by the 26,500 and 26,700 strikes, which shed 68,025 and 16,125 contracts, respectively.



5) Bank Nifty Call Options Data

According to the monthly options data, the 59,500 strike holds the maximum Call open interest, with 24.1 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 60,000 strike (19.91 lakh contracts) and the 61,000 strike (11.75 lakh contracts).

Maximum Call writing was observed at the 59,500 strike (with the addition of 3.95 lakh contracts), followed by the 61,000 strike ((2.84 lakh contracts) and 59,300 strike (1.87 lakh contracts). The maximum Call unwinding was seen at the 60,800 strike, which shed 1.6 lakh contracts, followed by the 60,100 and 59,600 strikes, which shed 1.46 lakh and 96,425 contracts, respectively.



6) Bank Nifty Put Options Data

On the Put side, the maximum Put open interest was seen at the 59,000 strike (with 13.79 lakh contracts), which can act as a key support level for the index. This was followed by the 59,500 strike (11.14 lakh contracts) and the 58,500 strike (9.86 lakh contracts).

The maximum Put writing was placed at the 59,100 strike (which added 45,010 contracts), followed by the 58,300 strike (37,310 contracts) and the 57,900 strike (37,520 contracts). The maximum Put unwinding was seen at the 58,000 strike, which shed 1.93 lakh contracts, followed by the 57,500 and 59,500 strikes, which shed 1.77 lakh and 1.74 lakh contracts, respectively.



7) Funds Flow (Rs crore)



8) Put-Call Ratio

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, fell to 0.98 on December 24, compared to 1.14 in the previous session.

The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.



9) India VIX

The India VIX, also known as the fear gauge, remained in the lower zone, falling 2 percent to hit a new closing low of 9.19. This signalled complacency in the market and comfort for bulls, but also indicated the need for alertness due to the possibility of sharp market moves.



10) Long Build-up (28 Stocks)

A long build-up was seen in 28 stocks. An increase in open interest (OI) and price indicates a build-up of long positions.



11) Long Unwinding (71 Stocks)

71 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.



12) Short Build-up (69 Stocks)

69 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.



13) Short-Covering (44 Stocks)

44 stocks saw short-covering, meaning a decrease in OI, along with a price increase.



14) High Delivery Trades

Here are the stocks that saw a high share of delivery trades. A high share of delivery reflects investing (as opposed to trading) interest in a stock.



15) Stocks Under F&amp;amp;O Ban

Securities banned under the F&amp;amp;O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.

Stocks added to F&amp;amp;O ban: Nil

Stocks retained in F&amp;amp;O ban: Sammaan Capital

Stocks removed from F&amp;amp;O ban: Nil

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Avinash Agarwal is reasonably positive on the entire value chain of the capital market as it is an emerging sector.

shorts/business/daily-voice-avinash-agarwal-explains-why-real-estate-sector-can-be-a-good-contra-bet-for-2026

Avinash Agarwal, senior vice president &amp; head – Equity at Bandhan Life, believes the real estate sector can be a good contra bet for 2026.

"This year (2025) we saw a correction in this sector, and valuations have come to a more reasonable level. We also witnessed rate cuts this year, which should help boost demand, especially in the value segment," he said in an interview to Moneycontrol.

He believes 2026 will be much better for the mid and small-cap segment given that the earnings growth is expected to improve and the full benefit of rate cuts, GST reforms, and other announcements will flow into the economy.

Are you positive on the entire value chain within the capital markets space for 2026?

We are reasonably positive on the entire value chain of the capital market as it is an emerging sector. The financialization of the economy has been taking prominence in the last few years, and we believe there is still a long way to go. Also, most of these businesses are capital light and generate good ROEs for the investors.

Do you expect 2026 to be a significantly better year than 2025 for equity markets, given that most negative factors appear to be discounted and several others have turned favourable for India?

Yes, we believe 2026 will be better than 2025 given that we have seen relatively muted returns from the market. While the Nifty has given about 10% returns, some segments of mid- and small-caps have seen meaningful correction.

We believe 2026 will be much better for the mid and small-cap segment given that the earnings growth is expected to improve and the full benefit of rate cuts, GST reforms, and other announcements will flow into the economy.

Despite the prevailing market perception that midcaps are overvalued, we are launching a new midcap fund in early 2026. Our conviction is based on two key pillars. First, midcaps have historically been the market’s top-performing segment over the long term, making them an essential component for life insurance portfolios. Second, we believe high-growth midcap companies should be evaluated using the Price/Earnings-to-Growth (PEG) ratio rather than a standard P/E multiple. On a PEG basis, midcaps are currently trading at attractive levels relative to large caps.

For 2026, do you prefer domestic economy–focused sectors over export-oriented sectors?

We believe that the domestic economy will be far more resilient compared to the global economy in the near future. The global economy is facing some challenges, in the form of conflicts, slower growth, currency challenges and fear of overspending on AI.

The domestic economy, on the other hand, is growing at a steady pace, boosted by favourable demographics, government reforms, lower interest rates, and clean balance sheets of the banks and companies. In this context, the mid caps are a better proxy for the India growth story.

Are you avoiding the IT services sector even in 2026, considering the possibility of a weakening US economy?

The IT sector has faced several challenges over the past 2–3 years, with AI being the biggest one at present. The companies need to adapt to this change. We have seen the Indian IT players adapt to technological changes in the past and continue to grow.

We believe the companies would be able to do it again. Some of these challenges have been factored into the valuations already. For 2026 we have a neutral view on the sector.

Do you expect any announcement related to an India–US trade deal from Trump in the next couple of weeks? Would such an announcement have more of a sentiment-driven impact rather than a fundamental one?

It is very difficult to give a timeline on the signing of any deal given the number of complexities involved. However, we believe that a deal would certainly be positive, as the US is a large export market for Indian companies. Some labour-intensive sectors such as gems and jewellery and textiles are dependent on exports to the US. Hence, if a deal is announced, it would certainly have a positive fundamental impact on the businesses and economy.

What is your contrarian (contra) bet for 2026?

We feel the real estate sector can be a good contra bet for 2026. The sector started its revival post-covid where we saw both price and volume recovery. While the price increases have slowed now, we continue to see decent volume growth. The industry has consolidated meaningfully in the last decade due to RERA and the previous down-cycle, and the survivors should do well now.

This year we have seen a correction in this sector, and valuations have come to a more reasonable level. Also, we have seen rate cuts this year, which should help boost demand, especially in the value segment.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Daily Voice: Avinash Agarwal explains why real estate sector can be a good contra bet for 2026

Avinash Agarwal, senior vice president &amp;amp; head – Equity at Bandhan Life, believes the real estate sector can be a good contra bet for 2026.

&quot;This year (2025) we saw a correction in this sector, and valuations have come to a more reasonable level. We also witnessed rate cuts this year, which should help boost demand, especially in the value segment,&quot; he said in an interview to Moneycontrol.

He believes 2026 will be much better for the mid and small-cap segment given that the earnings growth is expected to improve and the full benefit of rate cuts, GST reforms, and other announcements will flow into the economy.

Are you positive on the entire value chain within the capital markets space for 2026?

We are reasonably positive on the entire value chain of the capital market as it is an emerging sector. The financialization of the economy has been taking prominence in the last few years, and we believe there is still a long way to go. Also, most of these businesses are capital light and generate good ROEs for the investors.

Do you expect 2026 to be a significantly better year than 2025 for equity markets, given that most negative factors appear to be discounted and several others have turned favourable for India?

Yes, we believe 2026 will be better than 2025 given that we have seen relatively muted returns from the market. While the Nifty has given about 10% returns, some segments of mid- and small-caps have seen meaningful correction.

We believe 2026 will be much better for the mid and small-cap segment given that the earnings growth is expected to improve and the full benefit of rate cuts, GST reforms, and other announcements will flow into the economy.

Despite the prevailing market perception that midcaps are overvalued, we are launching a new midcap fund in early 2026. Our conviction is based on two key pillars. First, midcaps have historically been the market’s top-performing segment over the long term, making them an essential component for life insurance portfolios. Second, we believe high-growth midcap companies should be evaluated using the Price/Earnings-to-Growth (PEG) ratio rather than a standard P/E multiple. On a PEG basis, midcaps are currently trading at attractive levels relative to large caps.

For 2026, do you prefer domestic economy–focused sectors over export-oriented sectors?

We believe that the domestic economy will be far more resilient compared to the global economy in the near future. The global economy is facing some challenges, in the form of conflicts, slower growth, currency challenges and fear of overspending on AI.

The domestic economy, on the other hand, is growing at a steady pace, boosted by favourable demographics, government reforms, lower interest rates, and clean balance sheets of the banks and companies. In this context, the mid caps are a better proxy for the India growth story.

Are you avoiding the IT services sector even in 2026, considering the possibility of a weakening US economy?

The IT sector has faced several challenges over the past 2–3 years, with AI being the biggest one at present. The companies need to adapt to this change. We have seen the Indian IT players adapt to technological changes in the past and continue to grow.

We believe the companies would be able to do it again. Some of these challenges have been factored into the valuations already. For 2026 we have a neutral view on the sector.

Do you expect any announcement related to an India–US trade deal from Trump in the next couple of weeks? Would such an announcement have more of a sentiment-driven impact rather than a fundamental one?

It is very difficult to give a timeline on the signing of any deal given the number of complexities involved. However, we believe that a deal would certainly be positive, as the US is a large export market for Indian companies. Some labour-intensive sectors such as gems and jewellery and textiles are dependent on exports to the US. Hence, if a deal is announced, it would certainly have a positive fundamental impact on the businesses and economy.

What is your contrarian (contra) bet for 2026?

We feel the real estate sector can be a good contra bet for 2026. The sector started its revival post-covid where we saw both price and volume recovery. While the price increases have slowed now, we continue to see decent volume growth. The industry has consolidated meaningfully in the last decade due to RERA and the previous down-cycle, and the survivors should do well now.

This year we have seen a correction in this sector, and valuations have come to a more reasonable level. Also, we have seen rate cuts this year, which should help boost demand, especially in the value segment.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain closed on December 25 on account of Christmas holiday.

Trading in derivatives, equities, SLBs, currency derivatives, and interest rate derivatives will remain shut for the day.

The commodity derivatives segment will also remain closed for morning and evening sessions.

Trading on the NSE and the BSE will resume on December 26 (Friday).

On December 24, the Indian equity indices ended with marginal losses, following a volatile trading session marked by muted volumes ahead of the Christmas holiday.

At close, the Sensex was down 116.14 points or 0.14 percent at 85,408.70, and the Nifty was down 35.05 points or 0.13 percent at 26,142.10.

Trent, Shriram Finance, Apollo Hospitals, UltraTech Cement, Adani Ports were among major gainers on the Nifty, while losers were Interglobe Aviation, Wipro, Dr Reddy's Labs, Sun Pharma, Tata Motors Passenger Vehicles.

Except media and metal, all other sectoral indices ended in the red with Information Technology, Oil &amp; Gas, Pharma, PSU Bank down 0.4% each.

"Nifty continued with choppy movement with weak bias on Wednesday ahead of holiday in Indian and global markets due to Christmas and closed the day lower by 35 points amidst range movement. After opening on a positive note, the market failed to continue with upside momentum in the early to mid-part of the session. Gradual weakness was seen with range bound action in the mid to later part of the session and Nifty finally closed lower," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

"A small negative candle was formed on the daily chart with long upper shadow. Technically, the market action of the last two sessions signal breather in the market after a stellar rise from the lows, which could be an uptrend continuation pattern."

"The present lackluster movement in the market could be short lived and Nifty could bounce back sharply from the lows in the near term. Immediate support is placed at 26000 levels and the upside resistance to be watched around 26300," Shetti added.

Indian rupee ended lower at 89.78 per dollar on Wednesday versus Tuesday's close of 89.66.

"Following two days of muted close, the Indian rupee retreated, lagging behind its Asian peers on Wednesday. This decline was driven by a shift toward risk aversion, fueled by persistent capital withdrawals from foreign investors leading up to the holiday break, alongside heightened greenback demand from bullion importers," said Dilip Parmar – Senior Research Analyst, HDFC Securities.

"Despite the central bank’s announcement of USDINR swaps and Open Market Operations (OMO), the measures failed to ignite market enthusiasm as they did little to bridge the widening gap between dollar supply and demand ahead of year end."

"The outlook for spot USDINR maintains an upward trajectory provided it holds above the 89.00 mark; however, the 90.30 level continues to act as a formidable resistance for further gains," he added.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Stock market holiday today: BSE, NSE to remain shut for Christmas

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain closed on December 25 on account of Christmas holiday.

Trading in derivatives, equities, SLBs, currency derivatives, and interest rate derivatives will remain shut for the day.

The commodity derivatives segment will also remain closed for morning and evening sessions.

Trading on the NSE and the BSE will resume on December 26 (Friday).

On December 24, the Indian equity indices ended with marginal losses, following a volatile trading session marked by muted volumes ahead of the Christmas holiday.

At close, the Sensex was down 116.14 points or 0.14 percent at 85,408.70, and the Nifty was down 35.05 points or 0.13 percent at 26,142.10.

Trent, Shriram Finance, Apollo Hospitals, UltraTech Cement, Adani Ports were among major gainers on the Nifty, while losers were Interglobe Aviation, Wipro, Dr Reddy's Labs, Sun Pharma, Tata Motors Passenger Vehicles.

Except media and metal, all other sectoral indices ended in the red with Information Technology, Oil &amp;amp; Gas, Pharma, PSU Bank down 0.4% each.

&quot;Nifty continued with choppy movement with weak bias on Wednesday ahead of holiday in Indian and global markets due to Christmas and closed the day lower by 35 points amidst range movement. After opening on a positive note, the market failed to continue with upside momentum in the early to mid-part of the session. Gradual weakness was seen with range bound action in the mid to later part of the session and Nifty finally closed lower,&quot; said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

&quot;A small negative candle was formed on the daily chart with long upper shadow. Technically, the market action of the last two sessions signal breather in the market after a stellar rise from the lows, which could be an uptrend continuation pattern.&quot;

&quot;The present lackluster movement in the market could be short lived and Nifty could bounce back sharply from the lows in the near term. Immediate support is placed at 26000 levels and the upside resistance to be watched around 26300,&quot; Shetti added.

Indian rupee ended lower at 89.78 per dollar on Wednesday versus Tuesday's close of 89.66.

&quot;Following two days of muted close, the Indian rupee retreated, lagging behind its Asian peers on Wednesday. This decline was driven by a shift toward risk aversion, fueled by persistent capital withdrawals from foreign investors leading up to the holiday break, alongside heightened greenback demand from bullion importers,&quot; said Dilip Parmar – Senior Research Analyst, HDFC Securities.

&quot;Despite the central bank’s announcement of USDINR swaps and Open Market Operations (OMO), the measures failed to ignite market enthusiasm as they did little to bridge the widening gap between dollar supply and demand ahead of year end.&quot;

&quot;The outlook for spot USDINR maintains an upward trajectory provided it holds above the 89.00 mark; however, the 90.30 level continues to act as a formidable resistance for further gains,&quot; he added.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Motilal Oswal predicts steady Indian stock growth in 2026 post-2025 consolidation., Large-cap stocks preferred for their more reasonable valuations over mid and small caps, Top investment sectors: financials, consumer discretionary, and industrials

* Motilal Oswal predicts steady Indian stock growth in 2026 post-2025 consolidation.
* Large-cap stocks preferred for their more reasonable valuations over mid and small caps
* Top investment sectors: financials, consumer discretionary, and industrials

Motilal Oswal expects steady growth for Indian stocks in 2026 after a consolidating 2025, citing strong earnings, policy support, and sectoral opportunities in large-caps, financials, consumption, and industrials, with optimism for long-term market growth.

shorts/business/after-a-year-of-consolidation-motilal-oswal-expects-markets-to-deliver-steady-growth-in-2026-check-its-favourite-sectors

* Motilal Oswal predicts steady Indian stock growth in 2026 post-2025 consolidation.
* Large-cap stocks preferred for their more reasonable valuations over mid and small caps
* Top investment sectors: financials, consumer discretionary, and industrials

Indian stock markets are likely to deliver steady growth in the upcoming year 2026 after a phase of consolidation this year, Motilal Oswal Financial Services said in its report of 2026 outlook.

Indian benchmark indices closed in the red on December 24, with <a href="https://www.moneycontrol.com/indian-indices/SENSEX-4.html">Sensex</a> falling over 116 points (0.14 percent) to 85,408.70, and <a href="https://www.moneycontrol.com/indian-indices/nifty-50-9.html">Nifty 50</a> dropping 37 points (0.14 percent) to 26,139.70.

The domestic brokerage said that Indian equity markets are entering 2026 while trading close to all-time highs. It noted that Nifty is ending the calendar year 2025 after rising 10 percent on a year-to-date basis. It however held a positive view for the next year, supported by a recovery in corporate earnings and a gradual revival in private sector investments.

"Recent and forthcoming government policy measures should further aid this recovery. The Union Budget 2026 will be a key event to watch, as it is likely to set the direction for FY2026-27," Motilal added.
<h3>'India's long-term structural growth story remains intact'</h3>
India's long-term structural growth story remains intact, supported by favourable demographics, rising digital adoption, increasing financialisation of household savings and continued reform momentum, the brokerage said. "We believe the government's ongoing policy initiatives will help reset the trajectory of corporate earnings over the medium term. Additionally, any resolution of the tariff stalemate with the US could act as an important external catalyst for markets," it added.
<h3>Largecaps over small, midcaps:</h3>
From a valuation standpoint, Motilal explained why largecaps are relatively more reasonable after recent consolidation, while midcap and small-cap stocks warrant a more selective approach, with a focus on companies that have strong balance sheets, sustainable cash flows and clear earnings visibility.

"From a valuation standpoint, the Nifty-50’s one-year forward P/E stands at 21.5x, around 4% above its long-period average (LPA) of 20.8x. In comparison, valuations in the broader market remain elevated. The Nifty Midcap-100 and Nifty Smallcap-100 are trading at P/E multiples of 28.3x and 25.9x, representing premiums of ~26% and ~50% over their respective long-term averages," it added.
<h3>Which are Motilal's favourite sectors?</h3>
From an investment perspective, Motilal held a positive stance on large-cap stocks, particularly in sectors where earnings growth is strong and valuations remain reasonable. Financials continue to be preferred segment, backed by healthy credit growth, improving return ratios and strong balance sheets. It also remains positive on consumption-linked sectors such as consumer discretionary and automobiles, as demand recovery broadens and revenue growth improves.

Industrials and capital goods remain well positioned, benefiting from government-led reforms, infrastructure spending and localisation initiatives across manufacturing, electronics, data centres and energy transition-related segments, it added. “We are constructive on IT services from a medium-term perspective, as global technology spending is expected to recover gradually with stabilising macro conditions and increased focus on digital transformation, AI and efficiency-led adoption,” the brokerage further said.
<h3>Looking back at 2025:</h3>
2025 proved to be a year of consolidation and recalibration for Indian equity markets, marked by intermittent volatility and global headwinds, Motilal said. Nifty had entered this year in correction mode after touching record highs in September 2024, with the correction extending until early April 2025 amid the imposition of trade tariffs by the US.

The brokerage noted that market movements through 2025 were largely influenced by global trade dynamics, persistent FII outflows, currency volatility and evolving geopolitical developments. Markets remained range-bound amid moderation in earnings growth across select sectors, especially in small-cap stocks, despite a relatively stable domestic macroeconomic backdrop.

Towards the end of the year, however, Motilal noted that the Nifty recovered most of its losses and went on to make new record highs, reaching 26,325 on December 1. Broader markets displayed mixed trends, with midcaps showing relative resilience, while small-caps witnessed sharper bouts of volatility.

"After two years of a sharp rally—when the Nifty Midcap100 delivered returns of 46% and 24% in 2023 and 2024, respectively, and the Nifty Smallcap100 generated 56% and 24% over the same period—2025 turned out to be a year of consolidation for the broader market. The Nifty Midcap100 managed a modest ~6% annual return, while the Nifty Smallcap100 declined by ~-6%," it said.
<h3>Which factors shaped Indian stock markets in 2025?</h3>
While listing out the domestic and global factors which shaped market performance in 2025, Motilal said that easing by the Reserve Bank of India (RBI) emerged as a key stabilising force. During the year, the Indian central bank implemented four repo rate cuts amounting to a cumulative 125 basis points, bringing the policy rate down to 5.25 percent. Motilal said that this easing cycle was supported by low inflation and resilient economic growth.

RBI’s 100 basis points Cash Reserve Ratio (CRR) cut, announced in June 2025 and implemented in four tranches also improved liquidity conditions. “The RBI also conducted multiple open market operations, including a ₹1 lakh crore government securities purchase in December 2025, to inject durable liquidity into the system,” it said.

“Overall, CY2025 was a year of consolidation marked by volatility and global uncertainty, but it also helped reset valuations and investor expectations. As we move into 2026, improving earnings visibility, supportive policy measures and the potential turnaround in FII flows create a favourable backdrop for Indian equities. We remain optimistic on the long-term compounding potential of Indian markets and advise investors to stay disciplined, focus on quality businesses and use market volatility as an opportunity to build exposure fundamentally strong businesses aligned with India’s structural growth themes,” it added.

After a year of consolidation, Motilal Oswal expects markets to deliver steady growth in 2026: Check its favourite sectors

Indian stock markets are likely to deliver steady growth in the upcoming year 2026 after a phase of consolidation this year, Motilal Oswal Financial Services said in its report of 2026 outlook.

Indian benchmark indices closed in the red on December 24, with Sensex falling over 116 points (0.14 percent) to 85,408.70, and Nifty 50 dropping 37 points (0.14 percent) to 26,139.70.

The domestic brokerage said that Indian equity markets are entering 2026 while trading close to all-time highs. It noted that Nifty is ending the calendar year 2025 after rising 10 percent on a year-to-date basis. It however held a positive view for the next year, supported by a recovery in corporate earnings and a gradual revival in private sector investments.

&quot;Recent and forthcoming government policy measures should further aid this recovery. The Union Budget 2026 will be a key event to watch, as it is likely to set the direction for FY2026-27,&quot; Motilal added.
'India's long-term structural growth story remains intact'
India's long-term structural growth story remains intact, supported by favourable demographics, rising digital adoption, increasing financialisation of household savings and continued reform momentum, the brokerage said. &quot;We believe the government's ongoing policy initiatives will help reset the trajectory of corporate earnings over the medium term. Additionally, any resolution of the tariff stalemate with the US could act as an important external catalyst for markets,&quot; it added.
Largecaps over small, midcaps:
From a valuation standpoint, Motilal explained why largecaps are relatively more reasonable after recent consolidation, while midcap and small-cap stocks warrant a more selective approach, with a focus on companies that have strong balance sheets, sustainable cash flows and clear earnings visibility.

&quot;From a valuation standpoint, the Nifty-50’s one-year forward P/E stands at 21.5x, around 4% above its long-period average (LPA) of 20.8x. In comparison, valuations in the broader market remain elevated. The Nifty Midcap-100 and Nifty Smallcap-100 are trading at P/E multiples of 28.3x and 25.9x, representing premiums of ~26% and ~50% over their respective long-term averages,&quot; it added.
Which are Motilal's favourite sectors?
From an investment perspective, Motilal held a positive stance on large-cap stocks, particularly in sectors where earnings growth is strong and valuations remain reasonable. Financials continue to be preferred segment, backed by healthy credit growth, improving return ratios and strong balance sheets. It also remains positive on consumption-linked sectors such as consumer discretionary and automobiles, as demand recovery broadens and revenue growth improves.

Industrials and capital goods remain well positioned, benefiting from government-led reforms, infrastructure spending and localisation initiatives across manufacturing, electronics, data centres and energy transition-related segments, it added. “We are constructive on IT services from a medium-term perspective, as global technology spending is expected to recover gradually with stabilising macro conditions and increased focus on digital transformation, AI and efficiency-led adoption,” the brokerage further said.
Looking back at 2025:
2025 proved to be a year of consolidation and recalibration for Indian equity markets, marked by intermittent volatility and global headwinds, Motilal said. Nifty had entered this year in correction mode after touching record highs in September 2024, with the correction extending until early April 2025 amid the imposition of trade tariffs by the US.

The brokerage noted that market movements through 2025 were largely influenced by global trade dynamics, persistent FII outflows, currency volatility and evolving geopolitical developments. Markets remained range-bound amid moderation in earnings growth across select sectors, especially in small-cap stocks, despite a relatively stable domestic macroeconomic backdrop.

Towards the end of the year, however, Motilal noted that the Nifty recovered most of its losses and went on to make new record highs, reaching 26,325 on December 1. Broader markets displayed mixed trends, with midcaps showing relative resilience, while small-caps witnessed sharper bouts of volatility.

&quot;After two years of a sharp rally—when the Nifty Midcap100 delivered returns of 46% and 24% in 2023 and 2024, respectively, and the Nifty Smallcap100 generated 56% and 24% over the same period—2025 turned out to be a year of consolidation for the broader market. The Nifty Midcap100 managed a modest ~6% annual return, while the Nifty Smallcap100 declined by ~-6%,&quot; it said.
Which factors shaped Indian stock markets in 2025?
While listing out the domestic and global factors which shaped market performance in 2025, Motilal said that easing by the Reserve Bank of India (RBI) emerged as a key stabilising force. During the year, the Indian central bank implemented four repo rate cuts amounting to a cumulative 125 basis points, bringing the policy rate down to 5.25 percent. Motilal said that this easing cycle was supported by low inflation and resilient economic growth.

RBI’s 100 basis points Cash Reserve Ratio (CRR) cut, announced in June 2025 and implemented in four tranches also improved liquidity conditions. “The RBI also conducted multiple open market operations, including a ₹1 lakh crore government securities purchase in December 2025, to inject durable liquidity into the system,” it said.

“Overall, CY2025 was a year of consolidation marked by volatility and global uncertainty, but it also helped reset valuations and investor expectations. As we move into 2026, improving earnings visibility, supportive policy measures and the potential turnaround in FII flows create a favourable backdrop for Indian equities. We remain optimistic on the long-term compounding potential of Indian markets and advise investors to stay disciplined, focus on quality businesses and use market volatility as an opportunity to build exposure fundamentally strong businesses aligned with India’s structural growth themes,” it added.

3 out of 4 years Nifty Microcap 250 has given negative returns in December.

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