On Wednesday, 24th December, Indian equity markets are expected to open mildly positively, backed by strong global cues and increasing bullion prices. However, after a sharp recent rally, benchmark indices appear to be entering a consolidation phase.
The GIFT Nifty also indicates a positive start, with the index trading near 26,234, up 31 points or 0.12% from the Nifty futures’ previous close.
The Sensex slipped 43 points, or 0.05%, to 85,524.84, while the Nifty 50 added 5 points, or 0.02%, to close at 26,177.15.
The BSE Midcap index rose 0.07%, and the Smallcap index gained 0.38%.
US stock indices ended at record highs after stronger-than-expected economic growth data reinforced confidence in the global recovery.
The US economy increased by 4.3% during the third quarter, thus continuing the upward trend and easing concerns about a recession.
Asian stocks have reacted well to these signs, which will probably raise the initial mood in Dalal Street.
Following its recent rally, the Sensex is signaling consolidation, yet the overall outlook is intact.
The index remains above its short-and medium-term moving averages, indicating a positive setup. In the short term, the 85,200-85,300 zone is likely to be the support.
Resistance is at 85,800, followed by 86,000, a psychological level. If the index can hold its position above this zone, then it could make way for further gains.
The Nifty 50 seems to be getting into the consolidation phase instead of a reversal. Support level is at the 26,000; a clear breakout above 26,300 would trigger a fresh upside move.
The significant activity of writing put options at the 26,000 strike price shows a strong downside support, while heavy call writing near 26,200 marks this level as immediate resistance.
Bank Nifty remains sideways, reflecting a balance between buyers and sellers. The index is currently trading within a defined range, with support near 58,800 and resistance around 59,500.
Momentum indicators suggest consolidation, and a clear breakout on either side will be needed to establish the next directional trend.
Also Read: Is a Stock Market Crash Coming in 2026? Historical Insights
On Wednesday, December 24, technical analyst Riyank Arora of Mehta Equities Ltd. recommended buying two stocks.
RailTel Corporation: The stock is comfortably above its support near Rs. 342, reflecting strong demand. RSI remains in a bullish range, supporting trend continuation. A breakout above Rs. 365 can lead to a rally toward Rs. 375 and Rs. 390.
Apollo Micro Systems: Apollo Micro Systems is showing renewed strength after rebounding sharply from its support zone. RSI is trending upward, signaling momentum. A move above Rs. 265 may trigger upside toward Rs. 275 and Rs. 285.
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