Indian equity markets are likely to open Monday on a cautious yet steady note, following a strong rebound at the end of last week. With benchmark indices reclaiming key levels and sectoral momentum improving, investors are now bracing for a phase of consolidation amid mixed global and domestic cues.
Markets Enter Consolidation Mode After Sharp Rebound
On Friday, December 12, the Sensex climbed 449.53 points to close at 85,267.66, while the Nifty50 gained 148.40 points to settle above the crucial 26,000 mark at 26,046.95. The rally was driven by supportive global trends, optimism around India–US trade negotiations, and renewed buying interest in cyclicals.
However, with major indices approaching near-term resistance zones, analysts expect markets to trade within a defined range on Monday, with intermittent volatility.
Metals and Realty Continue to Attract Buying Interest
Sectoral performance remained broad-based in the previous session. Nifty Metal outperformed with a strong 2.6 percent gain, supported by a softer US dollar, expectations of easier global monetary conditions, and China’s signal of a more proactive fiscal stance.
Realty, infrastructure, energy, auto, IT, banking, and pharma stocks also closed higher, posting gains between 0.15 percent and 1.5 percent. Midcap and smallcap indices extended their recovery, indicating improved risk appetite, even as FMCG and media stocks saw mild profit-taking.
Rupee at Record Low Adds a Note of Caution
The Indian rupee slipping to a fresh record low of 90.56 against the US dollar remains a key variable to watch. While a weaker rupee can benefit export-oriented sectors, it also raises concerns around imported inflation and foreign fund flows.
Market participants are closely tracking developments around India–US trade talks, where any concrete progress could provide a fresh catalyst for equities.
Nifty Outlook: Key Levels to Watch
Technical indicators suggest that the Nifty’s short-term pullback remains intact. The index has formed a bullish structure with higher highs and higher lows for the second consecutive session.
Immediate support: 25,900
Major support zone: 25,700–25,800
Near-term upside target: 26,200–26,300
Holding above the 25,900 level is critical to maintain positive momentum, while the 25,700–25,800 zone continues to act as a strong base aligned with the 50-day EMA and key retracement levels.
Bank Nifty: Range-Bound With a Positive Bias
Bank Nifty continues to consolidate near its 20-day EMA, reflecting stock-specific action within the sector. The index is expected to build a base in the 58,500–60,100 range.
Support: 58,200–58,600
Resistance: 59,500
Upside potential: Move towards the all-time high of 60,100 if resistance is decisively crossed
