Technical as well as momentum indicators have turned favourable for bulls, with the Nifty 50 decisively witnessing a breakout and climbing above all key moving averages. Hence, the positive trend is expected to continue despite any intermittent consolidation, with the Nifty 50 immediately eyeing 26,200, followed by 26,326 (record high) as a key resistance zone, while key support is placed at the 26,000 mark. Meanwhile, the Bank Nifty needs to sustain above the 59,150–59,100 zone for a move toward the 59,500–59,800 levels, while the 58,800–58,700 zone is expected to be the immediate key support area, experts said.
On December 22, the Nifty 50 soared 206 points (0.79 percent) to 26,172, while the Bank Nifty climbed 235 points (0.4 percent) to 59,304. Market breadth remained strong, as about 2,088 shares saw buying interest compared to 799 declining shares on the NSE.
Nifty Outlook and Strategy
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Nifty has started this truncated week on a positive note, indicating a Santa Rally going ahead. With this strong up move, it has provided a breakout above the 26,000 level, which was acting as a short-term hurdle. Above this level, the overall trend in the near term looks bullish.
On the options front, the 26,100 and 26,000 strikes have the highest Put base for this weekly expiry, whereas the 26,000 level now has the highest Put base for the monthly series. Hence, on a cumulative basis, 26,000 is a key support, and as long as it is trading above this level, the short-term trend remains bullish toward the 26,500 level.
The monthly PCR (Put-Call Ratio) is still at 1.13, so only for the expiry of December 23 can there be some volatility; otherwise, the short-term trend looks bullish as of now. The India VIX is at a relatively low level; however, in the absence of any major trigger, it is likely to remain low or trade within a range. A breakout may occur during the Q3 earnings season, ahead of the Union Budget, or if there is any global uncertainty.
Key Resistance: 26,500, 26,800
Key Support: 26,000, 25,800
Strategy: Buy Nifty Futures at around 26,160 and on dips near 26,050, with a stop-loss below 25,800, targeting 26,500 and 26,800.
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Nifty registered a decisive breakout in the previous session after spending the entire week consolidating within the 26,050–25,700 zone. The index closed comfortably above this congestion band, confirming a strong range breakout. From a trend perspective, Nifty remains positioned above all key DEMA levels, which reinforces sustained upward momentum and offers dependable support at lower levels.
Momentum indicators also validate this strength. The daily RSI is hovering near 60, reflecting steady buying interest without approaching overbought territory. Earlier, the RSI repeatedly held above the 45 area, which was an early signal of trend revival and improving bullish sentiment.
With price confirming the breakout, averages supporting the trend, and momentum remaining stable, the technical structure favours continuation on the upside unless critical supports are violated.
Key Resistance: 26,300, 26,400
Key support: 26,100, 26,000
Strategy: Buy Nifty Futures in the zone of 26,200–26,100, with a stop-loss of 25,900, targeting 26,500.
Shitij Gandhi, AVP - Technical Equity Research at SMC Global Securities
The Nifty 50 index is trading below recent highs, yet it continues to find strong support in the 25,850–25,800 zone, which is helping keep the overall structure stable. On the upside, resistance is placed near 26,300, with a stronger barrier around 26,350.
Derivatives data shows heavy Call positions at 26,200–26,300, while Put writing at 26,100 and 25,900 indicates buying interest on declines. Momentum is currently slow, but the overall tone remains positive as long as Nifty stays above 25,850.
Key Resistance: 26,300, 26,400
Key Support: 26,100, 25,950
Strategy: Buy Nifty Futures on dips near 26,100, with a stop-loss below 25,950, targeting 26,400.
Bank Nifty - Outlook and Positioning
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Bank Nifty also closed in positive territory in the last trading session; however, it has been underperforming the broader markets over the past couple of days, mainly due to sectoral rotation as well as changes in weights among Bank Nifty components.
The overall trend remains bullish, and as long as the 58,500–59,000 range is held, the uptrend stays intact. The PCR for Bank Nifty is still below 0.80, and the 60,000 strike has the highest Call base, acting as stiff resistance for this series. Until this level is decisively taken out, the short-term trend is expected to remain sideways to positive, with 58,500–60,000 being the short-term trading range. If private sector banks provide a breakout from crucial Call bases, there is a high probability of a breakout in Bank Nifty.
Key Resistance: 60,000
Key Support: 59,000, 58,500
Strategy: Buy Bank Nifty Futures and add on dips near 59,000, with a stop-loss below 58,500, targeting 60,000 and 60,500.
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Bank Nifty has broken above the previous three-day trading range and is sustaining comfortably above it, confirming renewed strength after a brief consolidation phase. The trend setup remains constructive, with price holding above all major DEMA readings, reflecting sustained bullish momentum and firm support at lower zones.
Momentum indicators also support this view. The daily RSI has reversed from the 50 region and is now trading above 55, signaling improving buying interest rather than neutrality. Taken together, the price breakout, moving-average alignment, and strengthening RSI suggest that Bank Nifty is likely to maintain a positive bias and may extend its upward move in the coming sessions unless critical support levels are breached.
Key Rsistance: 59,800, 60,000
Key Support: 59,100, 58,800
Strategy: Buy Bank Nifty Futures in the zone of 59,500–59,300, with a stop-loss of 59,000, targeting 60,000.
Shitij Gandhi, AVP - Technical Equity Research at SMC Global Securities
The key support to watch is around the 58,900–58,700 zone. As long as Bank Nifty stays above this area, buyers remain in control. On the upside, 59,500–59,800 is the first hurdle, with the recent high near 60,100 acting as a stronger resistance.
A clear break above this range could restart the uptrend. Until then, expect some sideways and choppy movement with a slightly positive bias.
Key Resistance: 59,600, 59,800
Key Support: 59,300, 59,000
Strategy: Buy Bank Nifty Futures on dips near 59,300, with a stop-loss below 59,000, targeting 59,800.
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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