Indian equity markets are expected to open on a flat-to-mildly negative note on December 30, with GIFT Nifty indicating an opening near 25,924, around 33 points lower than the previous close. 

In the previous session, benchmark indices ended lower. The Sensex slipped 345.91 points or 0.41% to close at 84,695.54, registering its fourth consecutive session of losses. The Nifty 50 declined 100.20 points or 0.38% to settle at 25,942.10, while Bank Nifty eased 79 points to 58,932, reflecting mild profit booking.

Sensex Outlook

From a technical perspective, the Sensex’s failure to hold above the 85,000 psychological level has reinforced the near-term bearish bias. 

The 84,400-84,500 area will act as a key support zone, and if selling pressure continues, the price may fall further to 84,200-84,000. 

On the upside, there’s strong resistance at 85,000-85,500, formed by heavy call writing, suggesting rallies may face selling pressure unless these levels are clearly broken.

Nifty 50 Outlook

The Nifty 50 trades below its short-term moving averages, indicating a loss of momentum. The support level of 25,900-25,850 offers the first stronghold, while 25,700 will be considered a crucial point for the overall market to maintain its existing trend.

The resistance is at 26,050-26,100, and for the bullish trend to be reclaimed, there must be a persistent breakout above 26,150.

The option data shows significant put positioning near 25,900 and call writing around 26,200, implying a consolidation range for the near future.

Volatility has increased, with the India VIX rising more than 6% to 9.7, suggesting rising uncertainty ahead of the December futures and options expiry.

Bank Nifty Outlook

The Bank Nifty is displaying short-term indecision, forming a narrow range with selling pressure at higher levels. The 59,150-59,250 range is the first resistance level, followed by 59,800. On the other side, 58,600-58,700 is a key support area.

Experts recommend a strategy of buying near support and selling near resistance until there is a clearer breakout in the direction.

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Institutional Flows and Macro Cues

The market was further pressured by the Foreign Institutional Investors (FIIs), who sold shares amounting to Rs. 2,759 crore, while Domestic Institutional Investors (DIIs) somewhat relieved the pressure by buying shares worth Rs. 2,643 crore.

The IIP growth in India for November was reported at 6.7%, driven by strong production in manufacturing and capital goods. The market is experiencing short-term volatility, but overall sentiment remains positive in the near term.