Stock Market Update: Sensex, Nifty 50 Likely to Extend Gains on December 23

Indian equity benchmarks are expected to open Tuesday’s session on a positive note, building on the momentum of the past two trading days. Supported by sustained foreign investor inflows, a stronger rupee and optimism over potential rate cuts by the US Federal Reserve.

The GIFT Nifty also suggests a positive start, trading around 26,230, up 20 points from its previous Nifty futures close. 

Market Recap and Broader Trend

The Indian stock market closed sharply higher on Monday, December 22. The market continued its bullish trend for a second straight day as the Sensex jumped by 638 points or 0.75% to finish at 85,567, while the Nifty 50 gained 206 points or 0.79% and ended at 26,172.40.

The broader market participation was healthy, as the Nifty Midcap100 and Smallcap100 indices rose by 0.8% and 1.2%, respectively.

The market was sectorally positive with most indices closing in the green and IT and metals being the major contributors to the rally with 2.1% and 1.4% gains, respectively.

Optimism around potential further rate cuts by the US Federal Reserve and a sharp rise in Infosys ADRs drove the Nifty IT index higher for the fourth consecutive session.

Sensex Outlook

Analysts believe the near-term structure for the Sensex remains positive; the index has a strong support around 85,000-85,300. 

As long as this area holds, the bias remains upward. Immediate resistance is seen near 85,700, and a decisive breakout above this level could open the path toward the 86,000-86,200. 

A dip below 85,000, however, may weaken the current uptrend and trigger short-term profit booking.

Nifty 50 Outlook

The Nifty 50 remains above the mark of 26,000. According to experts, the index has been consolidating at higher levels, which means that the buyers are ready to defend the profits made.

The resistance is at 26,300-26,350, while support is at 26,050 and 26,000. The trend is likely to remain positive as long as the index stays above 25,900.

From the options data, there is strong support close to the current level, with heavy put writing on 26,100 and call resistance on 26,200.

Also Read: US Stock Market Today: NASDAQ Rises 0.5% as Tech Stocks and Commodities Rally Amid Key Corporate Moves

Bank Nifty Outlook

Bank Nifty has shown signs of improving strength after closing above key short-term hurdles. The index faces resistance near 59,550, and a sustained move above this level could trigger upside toward 59,800-60,000. 

Key support is placed at 58,300-58,600 levels, being the junction of the 50-day EMA and the recent breakout area.