Nifty 50 and Sensex have recovered well from their support for the second consecutive week. The price action on the daily chart indicates that a double-bottom pattern is possibly emerging. So, that keeps our overall bullish view intact. On the charts, it looks like the benchmark indices are gearing up for a Santa Claus rally this year.
Nifty Bank index, on the other hand, is looking slightly mixed. Although the broader picture is positive, it is not very clear whether the index can get a rise from here itself or after some more dip from current levels. We will have to wait and watch.
FPIs buy
The Foreign Portfolio Investors (FPIs) turned net buyers after selling heavily in the first two weeks of this month. The equity segment saw a net inflow of $419 million last week. The FPIs have to accelerate the pace of their purchase to aid the Sensex and the Nifty in gaining momentum.
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Nifty 50 (25,966.40)
Short-term view: The outlook is bullish with a possible double bottom pattern formation on the daily chart. The support at 25,700 is also holding very well. A break above 26,060 will confirm the double-bottom and take the Nifty up to 26,450 initially. An eventual break above 26,450 will then clear the way for a rally to 27,000 in the short term.
Nifty has to decline below 25,600 to turn the short-term outlook bearish. Only then a fall to 25,300-25,200 will come into the picture.
Medium-term view: There is no change in the broader uptrend. Nifty can rise to 28,000 in the medium term and target 31,000-32,000 in the long term.
Strong supports are at 25,000, 24,000 and 23,500. Nifty has to decline below 23,500 to become bearish. But that looks unlikely.
Nifty Bank (59,069.20)
Short-term view: The immediate outlook is unclear. The support at 58,700 mentioned last week is holding well. But the index seems to lack strength. Supports are at 58,700 and 58,400. Resistance is at 59,600.
Bias is positive to break 59,600 and rise to 60,800-61,000 in the short term. But it is not very clear whether this rise can happen from here itself or after getting a dip to 58,400 first. So, we will have to wait and watch.
Medium-term view: The broader bullish view is intact. Nifty Bank index can rise to 62,000-62,500 in the medium term. A corrective fall to 60,000-59,000 can be seen thereafter. From a long-term perspective, the Nifty Bank index has potential to target 65,000.
Supports are at 58,000, 56,000 and 54,000. A fall below 54,000 is needed to turn the outlook bearish.
Sensex (84,929.36)
Short-term view: The support at 84,000 is holding well in line with our expectation. Near-term resistances are at 85,100 and 85,350. The bias is positive to break 85,350 and rise to 85,900-86,000 in the short term.
The region between 84,100 and 84,000 will continue to act as a strong support. Sensex has to break 84,000 to turn the short-term picture negative for a fall to 83,000.
Medium-term view: The overall view remains bullish. A rise to 91,000-92,000 can be seen in the medium-term. Intermediate resistance is at 89,000 from where a corrective fall to 86,000 is possible before the rise to 92,000 happens. From a long-term perspective, Sensex can target 95,000 on the upside.
Support is at 82,000. Sensex has to break below it to become bearish.
Nifty Midcap 150 (22,146.15)
The support at 21,700 limited the downside for the second consecutive week. The Nifty Midcap 150 index touched a low of 21,672.50 and has recovered very well from there.
The chances are looking high now to breach the immediate resistance at 22,200 and rise to 22,500 initially. It will also keep our broader bullish bias intact. An eventual break above 22,500 will then take the index up to 22,900. Such a rise will confirm the bullish inverted head and shoulder pattern on the chart.
That in turn will leave the upside open for the Nifty Midcap 150 index to target 24,500-25,000 in the medium term and 27,000-28,000 in the long term.
Failure to breach 22,500 can keep the index in a range of 21,700-22,500 for some time.
The outlook will turn bearish only if the index declines below 21,600. If that happens, fall to 21,000 will come into the picture.
Nifty Smallcap 250 (16,407.70)
The index managed to sustain above 16,000 all through the week. This has given a breather. However, the index has to rise past 16,700 in order to turn the outlook positive. If that happens, a rise to 16,900 is possible initially and to 17,400 eventually in the short term.
Failure to rise past 16,700 can drag the index down towards 16,000 again. It will also keep the index under pressure to break 16,000 and fall to 15,500-15,300.
But such a fall looks less likely as seen from the price action on the weekly candle chart. The long wicks for the last two weeks indicate that the index is getting strong buyers around 16,000. So, that keeps the chances high for the Nifty Smallcap 250 index to rise breaking above 16,700 going forward.
Published on December 20, 2025
