Indian equity markets are likely to start weakly on Monday, December 15, due to weak global signals and the fall across Asian markets. The GIFT Nifty was trading at around 26,037, around 98 points down, indicating a negative opening for the indices.

The positive sentiment in relation to the US Federal Reserve's interest rate cuts on Friday has again been reflected in the Indian stock market by lifting both the Sensex and the Nifty higher.

Sensex Outlook

The Sensex rose by 450 points (0.53%) to close at 85,267.66 while the Nifty increased 148 points (0.57%) to finish trading at 26,046.95.

If you look at the Sensex it has been in a defined range for the last several days. The first line of defence is the ability to stay above 85,000 for support. If you can stay above 85,000 and maintain above 84,800, then you will have a defined support area immediately below 85,000.

Going forward for the next several days, the projection for the Sensex is that it will stay between 84,800 and 85,500, with 85,000 being the pivotal point for determining market direction.

If the index can get above 85,300, then your resistance area will be between 85,600 and 86,100. However, if the index trades below 84,800, then the market will become bearish and rapidly shift sentiment to the downside.

Nifty 50 Outlook 

Nifty 50 has bounced back to 26,000, reinforcing the optimistic sentiment after finding support around 25,720. 

If the 25,900-26,000 level is held, short covering may be triggered, which could push the index to 26,200-26,300 in the short term. 

The options data suggest a shift in open interest to higher strikes, with considerable addition at 26,200 and maximum positioning around 26,500, implying a limited upside unless a strong breakthrough occurs. 

Bank Nifty Outlook

The Bank Nifty ended last week’s trading at around 59,390, showing signs of consolidation. The nearest support is at 58,800-59,100, with resistance at 59,500, then 59,800-60,115.

A steady rise above 59,500 could boost market sentiment; however, a failure to hold support could lead to continued range-bound trading.

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Sectoral View and Market Tone

Sectorally, Nifty Metal was the lead gainer, rising 2.6%. Meanwhile, Realty, Infra, Energy, Auto, IT, Banks, and Pharma followed by rising between 0.15% and 1.5%. 

Similarly, the Midcap and Smallcap indices registered robust increases of 1.18% and 0.94%, respectively, despite the Media and FMCG segments experiencing minor downturns.

Investor wealth surged significantly as the total market capitalisation of BSE-listed firms crossed Rs. 470 lakh crore, adding more than Rs. 3 lakh crore in a single session.