Market Commentary (closing) for 26th December 2025 by Bajaj Broking
Below the Market Commentary (closing) for 26th December 2025 by Bajaj Broking
Market Closing Commentary
Benchmark equity indices ended lower on Friday, December 26, as profit booking in a holiday-truncated week and persistent FII selling weighed on investor sentiment. The Sensex declined 367.25 points, or 0.43%, to settle at 85,041.45, while the Nifty slipped 99.80 points, or 0.38%, to close at 26,042.30. Despite the subdued finish, both the Nifty and Sensex gained around 0.4% for the week, poised to snap a three-week losing streak, supported by strength in metal stocks amid improving demand cues from China, a softer U.S. dollar, and a stable U.S. growth outlook. In the broader market, the midcap index ended marginally lower by 0.23%, while the small cap index slipped 0.08%. Among sectors, Nifty IT was the top laggard, falling 1%, followed by losses in the Media and Auto indices, while Metal stocks outperformed with gains of 0.59%.
Nifty Outlook
The index formed a bearish candlestick pattern with a lower high and a lower low signalling profit booking after recent up move. Index on expected lines is seen consolidated in a range amid stock specific action. In the coming week index to extend the last four weeks consolidation in the broad range of 25,700-26,300. A clear breakout or breakdown will determine the next directional move. A breakout above 26,300 will open further upside towards 26,500 levels in the coming weeks. Key support is placed around 25,700–25,800 levels being the confluence of the current month lows, 50 days EMA and key retracement of the previous up move. Sustaining above this support area will keep the short-term bias positive
Bank Nifty Outlook
Index formed a bearish candlestick pattern with a lower high and a lower low signaling profit booking for the second session in a row. 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 two week’s high of 59,500 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 signalling 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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