Indian benchmark indices ended on a muted note on Thursday, December 26, as the markets witnessed a range-bound trade on the monthly expiry day. The S&P BSE Sensex closed at 78,472.48, inching down by 0.39 points, while the Nifty 50 index settled at 23,750.20, gaining 22.55 points, or 0.1%.
Market Overview and Technical Outlook
The day’s lackluster performance was primarily driven by corrections in FMCG and banking stocks, while auto and pharma sectors provided some support. According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty’s sideways movement reflected investor caution, with many choosing to stay on the sidelines. The index remained below its 200-day moving average, signaling persistent weakness. The RSI indicator showed bearish momentum, suggesting a sluggish market. De anticipates that in the short term, the Nifty may continue to face pressure, with support at 23,700/23,600 and resistance at 23,850.
Global Markets Update
Across the Atlantic, US stock markets edged lower on Thursday due to rising yields, which weighed on shares. Wall Street traded lightly, as investors awaited the year-end “Santa Claus rally”. Yields on government bonds climbed, with the 10-year benchmark yield reaching 4.64%, its highest since May. Among megacap stocks, Amazon dropped 0.3%, and Meta Platforms saw a 0.6% decline. Rate-sensitive real estate stocks led losses, slipping 0.4%, while consumer discretionary stocks dipped 0.5%.
In Europe, major markets were closed for the day, alongside markets in Hong Kong, Australia, New Zealand, and Indonesia.
Nifty Technicals: Range-Bound Movement Continues
On the Indian front, Chandan Taparia, Head of Equity Derivatives & Technicals at MOFSL, noted that the Nifty continued to trade within a narrow range of 300 points throughout the week, showing no clear direction. The index struggled near the 23,870 mark, with support found around 23,600. The market’s indecision was reflected in the formation of multiple Doji candles on the daily chart, signaling a tug-of-war between bulls and bears. Despite support-based buying, Taparia sees limited upside potential, with the Nifty hovering near its 200-day EMA and trading below its short-term moving averages.
Stocks in Focus: Buy Recommendations
For investors seeking opportunities, Hem Securities has a Buy recommendation on Antony Waste Handling with a target of ₹738, while Motilal Oswal Financial Services has a Buy call on Kajaria Ceramics with a target of ₹1450.
Market Activity Highlights
On the options front, analysts noted that maximum Call Open Interest (OI) was at the 24,000 strike, followed by 25,000, while maximum Put OI was at 23,800, followed by 23,000. This suggests a broader trading range between 23,200 and 24,200, with immediate support and resistance levels between 23,500 and 23,900.
Most Active Stocks (By Turnover):
- Mobikwik Systems: ₹433.21 crore
- Vishal Mega Mart: ₹122.19 crore
- Mazagon Dock: ₹106.41 crore
- Reliance Industries: ₹68.05 crore
- Infosys: ₹56.14 crore
Most Active Stocks (By Volume):
- Srestha Finvest: 4.25 crore shares
- Vodafone Idea: 3.71 crore shares
- Yes Bank: 74.74 crore shares
- One Mobikwik: 66.02 lakh shares
Stocks with Strong Buying Interest
Adani Ports, Intellect Design, Godfrey Phillips, Amber Enterprises, PNC Infratech, and Bluedart were among the stocks seeing significant buying interest.
Stocks Hitting 52-Week Highs
Over 155 stocks hit their 52-week highs today, including 360 One Wam, CarTrade Tech, Amber Enterprises, and Sagility.
Selling Pressure on Blue-Chip Stocks
Among large-cap stocks, Titan Company, Asian Paints, and Tata Consumer Products faced significant selling pressure, alongside Hindustan Copper, Finolex Cables, and Page Industries.
Market Sentiment: Bearish Bias Prevails
Despite some positive momentum in select sectors, sentiment overall leaned bearish. Heavyweight stocks like HDFC Bank, Reliance Industries, Larsen & Toubro (L&T), and Titan contributed to the flat market close, with 2,395 stocks declining on the BSE compared to 1,593 advancing, while 86 stocks remained unchanged.
In summary, the Indian market closed flat on expiry day, with a slight bearish undertone as market participants remained cautious. Investors are advised to watch key support and resistance levels closely as the market navigates through this range-bound phase.
