The stock market remained largely unchanged on Thursday, December 26, 2024, as gains in shares of Bharti Airtel, Adani Ports, and Mahindra & Mahindra were offset by declines in Reliance Industries, HDFC Bank, and Titan. The holiday-thinned global trade kept market sentiment subdued, while investors’ attention shifted towards the US Federal Reserve’s interest rate decisions for next year and former President Donald Trump’s tariff policies.
Market Performance: Sensex and Nifty Close Flat
The Sensex opened at 78,557.28, slightly higher than its previous close of 78,472.87, and moved between a high of 78,898.37 and a low of 78,173.38. Ultimately, it closed flat at 78,472.48. Similarly, the Nifty 50 opened at 23,775.80, marking a marginal increase from its previous close of 23,727.65, and reached an intraday high of 23,854.50 and a low of 23,653.60. The index ended the day at 23,750.20, up by 23 points or 0.10%, coinciding with the expiry of December futures and options (F&O) contracts.
Sectoral Insights: Mixed Performance
- BSE Midcap index outperformed the Sensex, gaining 0.11%, while the BSE Smallcap index dipped by 0.24%.
- Among sectoral indices, Nifty Auto, Healthcare, and Pharma gained nearly 1%. Meanwhile, Nifty Media fell by more than 1%. Nifty Bank and Private Bank indices saw small declines of 0.12% and 0.16%, respectively, whereas the Nifty PSU Bank index rose by 0.31%.
Expert Commentary: Market Outlook and Key Focus Areas
According to Vinod Nair, Head of Research at Geojit Financial Services, the market remained flat throughout the day, impacted by holidays in global markets and the absence of major domestic or global triggers. He noted that concerns over Foreign Institutional Investor (FII) outflows, a weakening rupee, and potential adverse tariff policies from the US were contributing to the muted market sentiment.
The focus is now on the US Federal Reserve’s interest rate strategy in the coming year, as well as Donald Trump’s tariff policies, which could influence global trade and investor confidence in the short term.
Nifty 50 Outlook: Struggling at Key Resistance Levels
Aditya Gaggar, Director at Progressive Shares, highlighted that bulls are facing difficulty breaking through the immediate resistance at 23,850. He suggests that while the market saw an initial rally, particularly led by banking stocks, the momentum was short-lived in the absence of significant market triggers. Gaggar advises watching the range between 23,650-23,850 for a potential breakout in either direction.
Meanwhile, Chandan Taparia from Motilal Oswal Financial Services mentioned that the Nifty 50 is trading near its 200-day exponential moving average (EMA), with a formation of a Doji candle on the weekly chart. This suggests support-based buying but with limited upside potential. He also pointed to significant FII selling pressure and advised that Nifty 50 could swing between 23,900-24,000 if it holds above 24,500 in the coming days.
Options Data: Key Levels to Watch
Option data indicates a broader trading range for the Nifty between 23,200 and 24,200, with immediate levels ranging between 23,500 and 23,900. Call writing is seen at 23,800 and 24,000, while Put writing is visible at 23,800 and 23,000, reflecting a market sentiment of consolidation in this zone.
