Indian equity markets are expected to start the week positively, due to positive global cues and optimism in Asian markets. The GIFT Nifty also points to a positive start as it is trading at 26,170, up 139 points or 0.54% over the last close of Nifty futures, indicating bullishness after the strong bounce back in the last session.

Market Recap

The Sensex on Friday, December 19, closed with a gain of 447.55 points or 0.53% to close at 84,929.36, while the Nifty50 went up by 150.85 points or 0.58% and settled at 25,966.40. The recovery was broad-based, with all the sectoral indices finishing in the green.

Sensex Outlook

The Sensex is still trading in a narrow range as investors remain cautious at higher levels. The support level has been consistently near the 84,400-84,500 range, and the resistance level is at 85,000.

According to experts, the index will continue its pattern until a clear breakout or breakdown happens.

The movement in derivatives is pointing to a balance at the current levels, with both call and put positions clustered near the 85,000 strike, which suggests that investors are indecisive.

Nifty 50 Outlook

The Nifty 50 is trading at a key level, where it is balancing between the constructive medium-term trend and the near-term resistance.

The index is still trading over its key moving averages, confirming the broader bullish structure. However, there will be a strong move upwards only if the index decisively breaks above the 26,000-26,100 level.

On the upside, the resistance is seen at 25,900, then at 25,800. A fall under 25,700 could increase selling pressure, while holding above the support level could encourage a buy-on-dips approach.

Bank Nifty Outlook

Bank Nifty remains in a consolidation phase, reflecting hesitation among banking stocks. The index has held above the 59,000 mark but faces resistance near the 21-day average of 59,260. 

A breakout above this level could open a path toward 60,000.

On the downside, 58,470 is a key support, and the index is likely to oscillate in a broader 58,400-60,000 range with a positive bias in the coming week.

Also Read: What Is the 7% Rule in the Stock Market and Why It Matters?

Sectors Performance

Realty, auto, healthcare and chemicals stocks led the rally, while other sectors saw mild gains. Broader markets outperformed the benchmarks, with the Nifty Midcap index rising 1.20% and the Nifty Smallcap index advancing 1.34%.

Commenting on the market performance, Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, said Indian equity markets ended firmly higher, supported by value buying at lower levels, renewed foreign institutional investor (FII) inflows, and a marginal recovery in the rupee. 

"Broader markets outperformed the benchmarks, reflecting improved risk appetite," he noted, adding that sectoral participation was widespread.