Sensex Down 42 Points, Nifty at 26,177; Tomorrow Nifty Prediction

Market Closes Flat Amid Profit Booking; Eyes on 26,400 Resistance for December 24th

The Indian equity markets paused for a breather on Tuesday, December 23rd, as the frontline indices, Sensex and Nifty 50, ended the session on a flat note. After a period of sustained bullish momentum, investors appeared to take some chips off the table, leading to profit booking at higher levels. Despite the lack of direction in the heavyweights, the broader market showed resilience, with mid and small-cap segments managing to eke out marginal gains amidst a backdrop of mixed global signals.

Market Performance Summary: December 23, 2025

The BSE Sensex concluded the day with a marginal decline of 43.12 points, or 0.05%, settling at 85,524.84. On the other hand, the NSE Nifty 50 managed to stay in the green by a razor-thin margin, gaining 5.10 points, or 0.02%, to finish at 26,177.15.

The session was characterized by narrow-range trading. While the benchmarks were sluggish, the BSE Smallcap index rose by 0.38%, suggesting that “risk-on” sentiment remains intact within the broader market. Sectorally, the performance was a mixed bag. Dragging the Nifty lower were heavyweight stocks like Infosys, Bharti Airtel, and ICICI Bank. Conversely, the downside was cushioned by gains in HDFC Bank and ITC, which provided much-needed support to the index.

Technical Analysis: Nifty 50 Outlook

Despite the flat closing, technical experts maintain a constructive outlook on the primary trend. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the current chart structure suggests the upward momentum is far from over.

“Considering the current chart structure, the Nifty is likely to continue its upward trajectory over the coming sessions,” Shah observed. “Following the established rules of a Double Bottom Pattern breakout, the short-term upside target for the index is projected at 26,420.”

For the trading session on Wednesday, December 24th, market participants should watch the following levels:

• Support: The 20-day Exponential Moving Average (EMA) zone, currently placed between 25,950 and 26,000, acts as a bedrock of support.

• Immediate Support: Nagaraj Shetty, Senior Technical Research Analyst at HDFC Securities, identifies a more immediate support level at 26,050.

• Resistance: Sustaining above the 26,200 mark will be crucial to trigger the next leg toward the 26,300–26,400 zone.

Shetty further explained that Tuesday’s “small red candle” with minor shadows indicates a “breather-type” pattern. This is often viewed as a healthy consolidation after a sharp rally, serving as a base-building exercise before the next move higher.

Bank Nifty: A State of Uncertainty

The banking benchmark, Bank Nifty, exhibited even higher levels of indecision. The index traded within an incredibly tight range of just 185 points—marking its narrowest daily range since May 18, 2024.

This price action resulted in a “small-bodied candle” or a “Doji-like” formation on the daily charts, signifying a tug-of-war between bulls and bears. According to Sudeep Shah, the path forward for the Bank Nifty depends on a decisive breakout:

• The Resistance Barrier: The 59,500–59,600 zone is the immediate hurdle. A sustained move above 59,600 could open the floodgates for a rally toward 60,000, and potentially 60,500 in the short term.

• The Safety Net: On the flip side, the 59,000–59,100 zone remains a crucial support area. A slide below this could signal a deeper retracement.

Global and Domestic Triggers for December 24th

As we head into the penultimate trading day of the week, several factors will influence market sentiment:

1. Year-End Liquidity: As foreign institutional investors (FIIs) often go into “holiday mode” during the last week of December, trading volumes might thin out. This can lead to increased volatility as smaller trades have a larger impact on price movement.

2. Global Cues: Investors will be monitoring the performance of US futures and Asian markets. Mixed global cues have kept the Indian indices in a consolidative mood, and any sharp movement in the US 10-year Treasury yields or the Dollar Index (DXY) could impact local sentiment.

3. Profit Booking vs. Fresh Buying: While profit booking was evident in IT and select private banks on Tuesday, the steady buying in FMCG (ITC) and large private lenders (HDFC Bank) suggests that domestic liquidity remains strong.

Strategy for Traders

The underlying trend of the Nifty remains positive. However, after the recent run-up, a “buy on dips” strategy appears more prudent than chasing the market at current peaks.

For Nifty Traders: The index is expected to resume its upward journey after one or two sessions of range-bound action. If the Nifty dips toward the 26,000–26,050 support zone and shows signs of reversal, it could present a high-probability buying opportunity with a stop-loss placed just below the 20-day EMA.

For Bank Nifty Traders:

Wait for a clear breakout above 59,600 before initiating aggressive long positions. The current “uncertainty” in the banking sector suggests that the index is coiled for a sharp move once the range is broken.

Final Thoughts

The flat close on December 23rd should not be mistaken for weakness. Instead, it appears to be a necessary pause in a larger bull market. With the Nifty maintaining its position above key moving averages and the broader market showing strength, the bias remains titled toward the bulls for the December 24th session. The primary objective for the bulls will be to reclaim the 26,250 level, which would pave the way for the psychological target of 26,500 by the end of the month.

Would you like me to create a summary table of the key support and resistance levels for specific sectoral indices like Nifty IT or Nifty Auto?