Indian markets are expected to open cautiously on December 26, with benchmark indices likely to remain range-bound despite supportive global cues. With low volumes amid holidays and limited domestic triggers, investors are relying on technical levels and stock-specific opportunities.

Trends from GIFT Nifty indicate a muted start for the domestic market. It is trading near the 26,143 level, down 33 points from the previous Nifty futures close.

Market Recap

Indian markets were closed on December 25 due to Christmas. In the previous session on December 24, both benchmark indices ended marginally lower as investors booked profits.

The Sensex declined 116 points (0.14%) to close at 85,408.70, while the Nifty 50 slipped 35 points (0.13%) to settle at 26,142.10. Reflecting subdued sentiment.

Nifty Midcap100 declined 0.6%, while Nifty Smallcap100 ended with gains of 0.3%. Among sectors, metals, realty, and auto were in mild green, while Oil and Gas, IT, and Pharma indices closed with losses in the range of 0.4-0.7% each.

Sensex Outlook

The Sensex is likely to continue trading within a narrow range. The immediate resistance is near 85,750, while 85,300 remains a critical support zone. 

If the price sustains above 85,750, it could open a further rally up toward the 86,000-86,200 area. 

On the other hand, if the index drops below 85,300, it will increase the probability of the index testing lower levels near 85,000.

Nifty 50 Outlook

The Nifty 50 remains positive even amid ongoing consolidation. The 20-day moving average, aligned with the 26,050-26,000 range, forms a significant support area.

On the upside, a break above 26,300-26,350 could lead the index to the next phase of the uptrend and possibly to new highs.

There is a strong resistance at the 26,200 level due to the aggressive call writing, while the heavy put open interest at the 26,000 strike reinforces this as a strong support.

The India VIX has fallen by about 2% to 9.19, indicating that the market is less fearful and holding calmer expectations.

Also Read: Is a Stock Market Crash Coming in 2026? Historical Insights

Bank Nifty Outlook

The Bank Nifty is expected to extend consolidation and form a base in the range of 58,500-60,100 in the coming weeks. 

Strength above last week's high of 59,533 will open upside towards the recent all-time high of 60,100 levels. 

Key support is placed at 58,300-58,600 levels, being the confluence of the 50-day EMA and recent breakout area. While resistance is seen around 59,550, a breakout from this range is expected to set the next directional move for the banking index.