Indian stock market
Amid conflicting signals from around the world, investors remained cautious and kept selling in the absence of new triggers, causing the Sensex and Nifty market indices to close lower on Friday, December 26.
The Nifty 50 dropped 100 points, or 0.38%, to settle at 26,042.30, while the Sensex dropped 367 points, or 0.43%, to finish at 85,041.45. The BSE Midcap index eased 0.18% and the Smallcap index fell 0.34%, indicating that broader markets were still under pressure.
However, markets saw only slight increases on a weekly basis. The Nifty 50 increased 0.30% for the week ending December 26, stopping its three-week fall, while the Sensex increased 112 points, or 0.13%, to end a two-week losing run.
Next week’s stock market
Nifty
Due to pressure from profit-booking and sparse year-end trade, the Nifty 50 closed lower on Friday at about 26,042, down almost 0.4%.
“The daily candle was bearish, breaking below intraday support near 26,050 and reflecting loss of upward momentum,” stated Sumeet Bagadia, Executive Director at Choice Broking, about the Nifty outlook. Intraday 1-hour patterns indicated short-term consolidation with range-bound swings with lower highs and resistance rejection. Key support is located between 25,850 and 25,900, while immediate resistance is located between 26,150 and 26,200. If tested, broader demand at 26,850 and 25,800 is expected to draw positional buyers. With low volumes and conflicting mood, the market is still cautious overall.
Nifty Bank
The Bank Nifty ended Friday’s trading session lower at 59,011, retreating from recent highs as banking stocks saw profit-booking amid light activity over the holiday week.
Bagadia continued, “The daily chart displayed a bearish candle with lower high-low, suggesting short-term stabilization after recent rise,” about the Bank Nifty forecast. The price held above the 200-hour EMA as support during intraday 1-hour patterns, maintaining near-term structure and providing cushioning around important demand zones. The 200-hour EMA zone of 58,990 and broader support of 58,700–58,800 serve as attractive accumulation area for positional traders, while immediate resistance is located between 59,300 and 59,400. In general, bias is still cautious but supported above the 200-hour EMA.
Stocks to purchase
On Monday, December 29, Sumeet Bagadia has suggested purchasing three stocks. Bagadia has selected three stocks: MMTC, Hardwyn India, and Sagility.
1] MMTC
Target Price: ₹70 | Stop Loss: ₹63 | Purchase at ₹64.24
2] Hardwyn India
Purchase at ₹17.82 | Purchase at ₹19.19 | Purchase at ₹17.15
3] Sagility
Target Price: ₹56.5 | Stop Loss: ₹50.5 | Purchase at ₹52.63
Buy or sell
On Monday, December 29, 2025, Ganesh Dongre of Anand Rathi suggests purchasing three stocks.
Buy or sell
Due to the lack of new catalysts and conflicting signals from around the world, investors continued to sell shares, causing the Indian stock market to close down on Friday, December 26.
The Nifty 50 dropped 100 points, or 0.38%, to close the session at 26,042.30, while the Sensex shed 367 points, or 0.43%, to settle at 85,041.45. The Smallcap index dropped 0.34%, while the BSE Midcap index decreased by 0.18%.
However, benchmarks showed only slight increases on a weekly basis. For the week ending December 26, the Nifty 50 increased 0.30%, ending its three-week losing skid, while the Sensex increased 112 points, or 0.13%, ending a two-week losing trend.
Ganesh Dongre’s forecast for the market next week
The Nifty 50
Dongre claims that the Nifty has successfully maintained above the last breakthrough zone of 25,700–25,800 and is still trading comfortably above the psychologically significant 26,000 mark.
“This area currently serves as a solid and trustworthy base of support. The index’s immediate resistance is located in the 26,300–26,500 range, where supply pressure may soon appear.
This range-bound but positive structure is further supported by derivatives data. While significant Put open interest near the 25,700–25,600 strikes indicates a well defined support area, the highest Call open interest is focused around the 26,200–26,300 strikes, indicating strong resistance in that zone. Therefore, rather than causing a wider trend reversal, any corrective action towards the 25,800–25,600 range is likely to draw purchasing attention and could present favorable stock-specific accumulation chances,” he stated.
Nifty Bank
Dongre added that the Bank Nifty stayed mostly flat throughout the week, indicating consolidation following recent gains. The index continues to find support from consistent recoveries in both public and private sector banks.
Technically speaking, the Bank Nifty is firmly positioned above the critical 57,500–58,000 support band, maintaining the integrity of the larger banking structure. On the upside, a stronger barrier is located close to the 61,000 level, and there is stiff resistance in the 60,000–60,500 range,” he continued.
Weekly stocks to purchase or sell
Sun Pharmaceutical Industries: Purchase between ₹1700 and ₹1720, aim for ₹1780, and stop at ₹1670.
AU Small Finance Bank: Purchase between ₹970 and ₹980, aim for ₹1020, and stop at ₹950.
CG Power and Industrial Solutions: Buy at ₹652–658, aim for ₹685, and stop at ₹640.
