Nifty 50 and Sensex made the bullish breakout last week as expected, but, it did not sustain. They reversed lower in the second half of the week giving away most of the gains. However, the broader bias remains bullish. Supports are there to limit the downside from here. We expect the Sensex and Nifty to reverse higher again and retain the broader uptrend.
The Nifty Bank index, on the other hand, has been stable and range-bound over the last couple of weeks. Bias remains positive. But there is a chance to see a dip first and then a fresh rise ahead.
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Nifty 50 (26,042.30)
Short-term view: The break above 26,060 happened as expected. But Nifty fell back from the high of 26,236. Supports are at 26,000, 25,850 and 25,800. A fall below 25,800 is less likely. Nifty can reverse higher either from 26,000 itself or from the 25,850-25,800 region. That rise can take it up to 26,450 initially. An eventual break above 26,450 will be bullish to see 27,000-27,200 in the short term.
Nifty has to break 25,800 to turn the short-term picture negative. Such a break can drag it down to 25,400-25,300
Medium-term view: The broader bullish view of the Nifty targeting 28,000 in the medium term remains intact. From a long-term perspective, there is potential to see 31,000-32,000 on the upside.
Supports are at 25,000 and then in the 24,000-23,500 region. A fall below 23,500 will only turn the outlook bearish.
Nifty Bank (59,011.35)
Short-term view: The index has been stable and range-bound over the last couple of weeks. That continues to keep the immediate picture unclear. The overall bias is positive. However, the daily chart indicates that a near-term dip first to 58,600-58,300 is still possible. Thereafter, a fresh rise can breach the resistance at 59,800. That in turn will clear the way for a rise to 61,000-61,500 in the short term.
The index will come under pressure for more fall only if it declines below 58,300. In that case, an extended fall to 57,400-57,300 can be seen.
Medium-term view: The broader uptrend is intact. Supports are at 57,500-57,000 and then at 55,500-55,000. Nifty Bank index can see a rally to 62,000-62,500 in the medium term and 65,000 in the long term. A corrective fall from 62,000 to 60,000-59,000 is a possibility before the long-term target is met.
This bullish view will go wrong only if the index declines below 55,000.
Sensex (85,041.45)
Short-term view: The break above 85,350 happened last week, but did not sustain. Sensex has come off from the high of 85,738.
Series of supports are there at 84,800, 84,500 and 84,200. Sensex can reverse higher from either of these three supports and rise to 85,800 or 86,200. A break above 86,200 can take the index up to 87,000 eventually.
Only a break below 84,200 will bring the index under more pressure. If that happens, Sensex can fall to 83,400 or 83,100-83,000.
Medium-term view: The overall picture remains positive. Strong support is in the 83,000-82,500 region. Sensex can rise to 89,000 and then get a corrective fall to 86,000 first. A fresh rally thereafter can take the index up to 91,000-92,000 in the medium term. From a long-term perspective, there is potential to target 95,000.
Nifty Midcap 150 (22,190.75)
As expected, the index broke 22,200 and rose towards 22,500. It made a high of 22,425.85 and has come down from there. Supports are at 22,180, 22,120 and 22,090. A break below 22,090 will turn the near-term outlook negative. That can drag the Nifty Midcap 150 index down to 21,750-21,700.
On the other hand, if the index manages to sustain above 22,090 and moves higher, then it will strengthen the bullish case. It will increase the chances of breaking above 22,500 and touch 22,600 initially. An eventual break above 22,600 will then confirm the bullish inverted head and shoulder pattern on the chart.
It will take the index up to 22,900 first. That will clear the way 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.
Nifty Smallcap 250 (16,614.05)
The crucial resistance level of 16,700 was tested last week. The index made a high of 16,710.95 and came down slightly from there.
An important support is in the 16,470-16,450 region. If the index manages to sustain above this support, then there is a good chance to see a bullish breakout above 16,700. Such a break will take the index up to 16,850-16,900 initially. A further break above 16,900 will then see the rise extending towards 17,350-17,400.
But if the index fails to sustain above 16,450 and declines below it, then it can come under pressure. If that happens, the Nifty Smallcap 250 index can fall back to 16,100-16,000.
So, the price action in the 16,470-16,450 region will need a close watch this week.
Published on December 27, 2025
