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Below the Market Commentary (closing) for 22nd December 2025 by Bajaj Broking

Market Closing Commentary

Indian benchmark indices staged a strong rally, closing above the 26,150 mark, supported by renewed foreign investor inflows and growing optimism over potential U.S. Federal Reserve rate cuts which collectively improved overall market sentiment. At the close, the Sensex advanced 638.12 points (0.77%) to settle at 85,567.48, while the Nifty gained 206 points (0.79%) to end at 26,172.40. Sectoral performance remained broadly positive, with the majority of sectors participating in the rally. IT, Chemicals, and Metals led the gains, while other sectors also provided healthy support. Consumer Durables was the only sector that underperformed during the session. The broader market also delivered a strong performance, with the Nifty Midcap rising 0.84% and the Nifty Small cap gaining 1.17%, reinforcing the overall positive market breadth

Nifty Outlook

Index formed a strong bullish candlestick pattern with a higher high and a higher low signaling extension of the up move after breaking above a falling trendline joining recent highs highlighting positive bias. Nifty extended its up move for the third session in a row and is likely to move higher towards the upper band of the last 3 weeks range placed around 26300 levels. Only a breakout on a closing basis above the 26300 levels will open further upside towards 26,500 levels. Immediate support is placed at Monday’s gap up area 26,000 levels, holding above the same will keep the bias positive. While short term support is placed around 25,700–25,800 levels.

Bank Nifty Outlook

Index formed a small bull candle with a higher high and higher low signaling continuation of the up move amid stock specific action. Bank Nifty remains resilient, with buying emerging on declines—supported by notable strength in PSU banks and steady participation from private banks. We expect the index to extend consolidation and form a base in the range of 58500-60100 in the coming weeks. A strength above last week’s high of 59,533 will open upside towards the recent all time high of 60,100 levels in the coming weeks. The entire up move of the last 2 months is well channelled signaling sustained demand at elevated levels. Key support is placed at 58,300-58,600 levels, being the confluence of the 50 days EMA and recent breakout area.

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