After falling yesterday, the Indian equity markets are anticipated to open poorly today. The GIFT Nifty erases this expectation, opening at approximately 26,035, down 56 points and signifies that there may not be as large a drop as anticipated today.

On December 15, Sensex closed 54 points lower at 85213, the Nifty 50 lost approximately 20 points at closing at 26027, and after two consecutive days of gains, it has now broken the two-day winning streak.

Sensex Outlook

As the index is hovering just below its latest short-term moving average, it indicates a potential temporary stop in the upward trend, rather than the point at which it will reverse.

While the index still remains above the important level of support (84800 to 85000), the trend remains the same overall.

Resistance now occurs at the 85500 level, and further upward movement beyond that point should develop toward the 85800 level. However, should the price fall below the 84800 level on a short-term basis, this will most likely trigger some short-term weakness.

Nifty 50 Outlook

Despite its recent consolidation, Nifty 50 continues to trade above 26000, indicating underlying market strength. Support for the Nifty 50 continues to appear near 25900-25850, whereas stronger support appears at 25750.

Resistance for the Nifty 50 has now moved to the 26150-26200 area, and should prices close above that area decisively, the upward trend could continue, reaching toward the 26300-26325 area.

In the Derivatives Market, there appears to be heavy Call writing being developed at 26100, as well as large Put buying at 26000, further demonstrating that, in the short term, trading will take place within a defined range.

Bank Nifty Outlook

Bank Nifty managed to close around 59,460 after early losses in yesterday’s session, reflecting strength. The index formed a bullish candle, suggesting buying interest at lower levels.

Support is around 58,800, while resistance is in the 59,600 to 60,000 range.

If a breakout above this resistance occurs, it may accelerate the gains toward 60,500; on the other hand, a break below support could lead to short-term consolidation.

Macro and Sectoral Triggers

Sectoral trends were mixed, reflecting selective buying. PSU banks, media, IT, FMCG, and consumer durables, which increased by 0.3-1%, while the losses were incurred by the auto, pharma, and telecom sectors with a decline of 0.5-1%.

As for the broader market indices, the midcap index closed flat, and small-cap shares gained 0.2%.

Nifty Media was the top performer, posting a 1.8% gain, followed by Nifty FMCG, which rose 0.6% due to defensive buying. On the other hand, Nifty Auto fell 1% and Nifty Pharma fell 0.4%, respectively.

After the rupee fell to a new all-time low of Rs. 90.6 against the US dollar, currency movement will be closely watched for further insights.

Additionally, the global risk sentiment might be affected by the upcoming US macro data on inflation, employment, and manufacturing.

Also Read: US Stock Market Today: S&P 500 Flat as Treasury Yields Fall Ahead of Key US Payrolls and CPI Data