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Below the Quote on Weekly Market Wrap 26th December 2025 by Amol Athawale, VP-Technical Research, Kotak Securities

In the last truncated week, the benchmark indices witnessed profit booking at higher levels. The Nifty ends 0.3 percent higher, while the Sensex was up by 112 points. Among sectors, the Defence index was the top gainer, rallying over 3 percent, whereas PSU Bank index  shed nearly 1 percent. Technically, market opened on a positive note, but once again, the market witnessed profit booking at higher levels. On weekly charts, it formed a Doji candlestick pattern, indicating indecisiveness between the bulls and the bears.

We are of the view  that the short-term market texture is weak, but a fresh sell-off is possible only after the dismissal of 26,000/85000 or the 20-day SMA (Simple Moving Average). Below this, the market could retest the level of the 50-day SMA or 25,900/84700. Further downside may continue, potentially dragging the index to 25,800/84300. On the upside, a move above 26,200/85600 could lead to a bounce back towards 26,250–26,350/85800-86100.

For Bank Nifty, as long as it remains below the 20-day SMA of 59,300, the weak sentiment is likely to continue. Below this level, it could decline to 58,500–58,300. On the higher side, a move above 59,300 could push it up to 59,800–60,000.

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