Indian equity markets are expected to open flat to mildly positive on Monday, December 29, as investors balance supportive domestic structures against mixed global and geopolitical cues. Early cues from GIFT Nifty indicate a positive start for the indices. It is trading near 26,100, 21 points up from its previous Nifty futures close.

Market Recap

On Friday, December 26, Indian benchmark indices closed lower amid profit-taking in heavyweight stocks. The Sensex fell by 367 points (0.43%) to 85,041, while the Nifty 50 went down by 100 points (0.38%) to 26,042 at the close.

The weak daily close did not affect the weekly performance, which remained marginally positive. The Sensex was up 0.13% at the end of the week, while the Nifty 50 had a weekly increase of 0.30%, ending a three-week losing streak.

The sectoral performance was in line with the market, and most indices closed lower; IT, financials, and auto were the key laggards.

Sensex Outlook

The Sensex continues to consolidate just below its all-time highs, indicating supply at elevated levels but strong institutional support on dips. 

The index has consistently attracted buyers around the 84,800-84,500 range, implying that long-term investors are building up their positions.

A sustained move above the 85,500-85,800 range would be a strong signal of renewed momentum and could open the path toward 86,000-86,500 in the coming weeks.

Nifty 50 Outlook

The Nifty 50 remains within its long-term rising channel on the daily chart and is holding above key short-term moving averages. 

The area around 26,000 has become a key support level, backed by strong buying interest. 

To the upside, 26,200-26,300 remains a major resistance zone. If the price breaks decisively above this range, it could mean a move to 26,500-26,800, but a pullback to 25,800-25,900 is likely to be seen as an opportunity to buy rather than a signal of weakness. 

The options data shows heavy put accumulation at 26,000, which indicates a floor for the near term, while call writing near 26,200-26,300 caps immediate upside.

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Bank Nifty Outlook 

The Bank Nifty settled at 59,011, holding above its rising channel and the important moving averages. The 58,800-59,000 range remains strong support, and if it stays above 59,500, it could then direct price towards the 60,000-60,500 range.

However, if the price falls below 58,000-58,500, the price might consolidate in the short term, but the broader trend will remain positive.