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Market Update

Nifty : 25,942.10 -100.20 (-0.38%)

Sensex : 84,695.54 -345.91 (-0.41%)

* The equity benchmark Nifty extended its losing streak to a fourth consecutive session, closing below the 26,000 mark amid thin trading volumes. Sentiment remained weak due to continued selling by foreign institutional investors and subdued global cues. IT, auto, financial, rail, and defence stocks led the decline as investors booked profits, while metal stocks also retreated over 1% from their intra-day highs on similar profit-taking.

* Market participants adopted a cautious stance ahead of the release of domestic IIP data later today, the December series F&O expiry scheduled for tomorrow, and portfolio rebalancing activity by domestic and local funds for 2026. The Nifty ended the session down 100 points, or 0.4%, at 25,942 compared with the previous close.

* Globally, most Asian and European markets traded lower in thin holiday volumes, with investors awaiting the release of FOMC minutes later this week. Within the metal space, stocks saw selling pressure from intra-day peaks. Hindustan Zinc fell 3% to close at Rs.618 after hitting an intra-day high of Rs.656, weighed down by a decline in silver prices from record levels. Hindustan Copper advanced 2% to settle at Rs.487 while touched intra-day high of 545.

Technical Outlook:

* Nifty index opened slightly positive and after its attempt to cross 26100 zones, it failed to hold its morning highs and drifted lower. It took support near 25900 levels but remained in pressure to close with losses of around 100 points. It formed a bearish candle on the daily frame and has started to form lower highs – lower lows from the last two sessions. Now till it holds below 26000 zones, weakness could be seen towards 25800 then 25700 zones while hurdles are placed at 26150 and 26250 zones.

* S&P BSE Sensex index opened on a flattish note but bears took charge right from the first tick. The index was dragged lower for most part of the session as profit booking intensified keeping sentiment weak throughout the day. On the daily chart it formed a bearish candle and continued its sequence of lower highs for the fourth consecutive session indicating sustained selling pressure and a weakening short term structure. Further, the index also slipped below its 20 DEMA. Now till it holds below 85000 zones weakness could be seen towards 84300 then 84000 zones while hurdles have shifted lower to 85000 then 85300 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.40% at 25955 levels. Positive setup seen in Marico, Canara Bank, AU Bank, Ashok Leyland, Tata Steel, Tata Consumer and Hudco while weakness in SBI Card, JSW Energy, Trent, Fortis, Kaynes, INOX Wind, CDSL, CG Power, Delhivery, Dixon, IEX and Lodha.

* On option front, Maximum Call OI is at 26100 then 26200 strike while Maximum Put OI is at 25900 then 26000 strike. Call writing is seen at 26000 then 25950 strike while Put writing is seen at 25900 then 25850 strike. Option data suggests a broader trading range in between 25500 to 26300 zones while an immediate range between 25700 to 26100 levels.

Global Market Update

* European Market - European stocks hovered near a record, while Novo Nordisk A/S rallied as it won approval to sell a pill version of its blockbuster obesity shot Wegovy in the US. UK, France and Germany Index are trading flat.

* Asian Market - Asian shares were mostly lower in thin holiday trading as China staged military exercises near the island of Taiwan. China, Hong Kong, Japan Index declined up to 0.5%.

* US Data - Pending Home Sales.

* Commodity - Oil prices rose above $61/bbl as investors weighed the outcome of talks between the US and Ukrainian presidents on a potential deal to end the war in Ukraine, as well as Middle East tensions that could disrupt supply.

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