Trade Setup for January 1: Since most international markets are closed today, the key Indian stock market indexes, the Sensex and Nifty 50, are expected to start at record highs on January 1.
Market Opening Cues
The Indian benchmark index had a flat but encouraging opening, according to Gift Nifty trends. At a record high of 26,341, the Gift Nifty was up 66 points, or 0.25%, from the previous closing of the Nifty futures.
On the last trading day of 2025, the Indian stock market saw widespread purchasing across all categories during the previous session as short covering improved mood due to expectations that the next year will be better.
Market Drivers and Closing Levels
The rise was bolstered by expectations of increased profitability, progress on a trade agreement between the US and India, and the possible return of foreign investors.
The Nifty 50 increased 191 points, or 0.74%, to end at 26,129.60, while the Sensex increased 546 points, or 0.64%, to conclude at 85,220.60.
Near-Term Market View
The benchmark indexes will probably be limited to a range as markets continue to observe stock-specific movements.
Ahead of the December quarter results season, investors continue to be cautious while keeping an eye on geopolitical events.
Sensex Forecast
What to anticipate from the Sensex, Nifty 50, and Bank Nifty today is as follows:
Analysts say the Sensex’s technical position indicates potential for more higher as markets greet the new year, if important support levels hold.
Technical Outlook on Sensex
Shrikant Chouhan, Head of Equity Research at Kotak Securities, commented on the technical outlook, saying the benchmark is displaying positive indicators.
“A lengthy bullish candle implies the possibility of a further upswing from the present levels, and the Sensex has established a favorable reversal pattern on the daily charts,” he said.
“8,5000 and 84,800 would operate as immediate support zones, and as long as the market trades above these levels, the optimistic attitude is expected to continue, with upside potential above 85,800 and potentially 86,100, while a break below 84,800 would render the trend fragile,” Chouhan said.
Buy-on-Dips Strategy
Amruta Shinde, a technical and derivative analyst at Choice Equity Broking, had a similar opinion, stating that purchasing on dips in the index is still occurring.
“The Sensex stayed above the 85,000 mark solidly and respected intraday support, signaling accumulation at lower levels,” she said.
She noted that immediate resistance is located in the 85,700–85,900 range and support is indicated around 84,700–84,800.
She claims that the short-term trend favors a buy-on-dips approach as long as these support levels hold.
Nifty OI Information
Analysts predict that muted volatility and favorable derivatives positioning might provide a solid foundation for further gains as markets anticipate the new year.
Traders are keenly monitoring signals from the options market to see if the current surge can continue into early January as risk indicators stay benign.
Volatility and Derivatives Data
“Volatility remained restrained, with India VIX lingering in the low zone, showing consistent near-term expectations,” said Aakash Shah, Research Analyst at Choice Equity Broking, in response to the setting.
Derivatives data reinforced the breakthrough and suggested a bullish bias into early January, with call holdings unwinding around 26,000 and new put writing at higher strikes.
Nifty 50 Forecast
Analysts think the Nifty is getting close to a critical zone that might dictate the course of the next move as markets enter a new phase of the cycle.
The question now is whether the benchmark can escape its consolidation band or see fresh periods of profit-taking in the near future after finishing 2025 on a strong note.
Resistance and Breakout Levels
The index is once again challenging the top limit of its range, according to Ajit Mishra, SVP-Research at Religare Broking, who offered a guarded view.
Technically speaking, the Nifty has once again gotten close to the top of its current consolidation level, which is about 26,200.
The next phase of rising momentum may begin with a clear breakthrough above this level, but failing to do so might result in further profit-taking, according to Mishra.
A cautious and sector-specific approach is advised, he said, with a bias for banking, auto, and metal companies, even if the overall prognosis is still favorable.
Structural Strength in Nifty
Osho Krishan, Chief Manager of Technical and Derivative Research at Angel One, emphasized the fundamental strength of the market in a similar vein.
“The benchmark index showed remarkable resilience by the end of 2025, generating double-digit gains above 10%, indicating the adaptation of domestic players,” he said.
The 26,000 level, which is in line with the 20 DEMA, is anticipated to offer short-term support, while a persistent move above 26,200 could reopen the path toward lifetime highs of 26,325 in the upcoming sessions.
Krishan added that the larger structure is still strong with the formation of higher highs and higher bottoms.
Forecast for the Bank Nifty
As traders determine whether the current bounce has the momentum to develop into a sustained rally, analysts say banking stocks might set the tone in the near future.
Bank Nifty Technical Setup
Vatsal Bhuva, a technical analyst at LKP Securities, commented on the technical setup, saying that Bank Nifty exhibited early indications of rising mood.
The RSI is approaching a bullish crossing at 60, according to Bhuva, who also noted that momentum indicators are becoming encouraging.
However, he warned that the index is still in a sideways phase and has to hold above the 20-day SMA to confirm strength.
He noted that the following session will be critical and set immediate support at 59,200, resistance at 59,750, and positional support at around 59,000.
Key Support and Resistance Zones
Aakash Shah, a research analyst at Choice Equity Broking, had a similar opinion and emphasized the index’s superior performance in the most recent session.
He pointed out that the index closed close to the day’s highs, indicating accumulation at lower levels, and successfully defended important support levels.
He claims that 59,800–59,900 is the immediate resistance zone and that 59,300–59,400 is still an important support level to keep an eye on moving ahead.
