Indian equities are expected to start the trading day on Monday, December 15, 2025, with a cautious but stable outlook, building on the gains from the previous session. On December 12, both the Sensex and Nifty50 closed higher, fueled by positive global cues, progress in India-US trade discussions, and strong sectoral momentum, particularly in metals, realty, and banking.
Key Market Indicators and Predictions
The Sensex has demonstrated a short-term shift towards a "mildly bullish" trend after a notable rebound. On Friday, December 12, the 30-share BSE Sensex climbed 449.53 points, or 0.53 percent, to settle at 85,267.66. During the day, it had jumped 502.69 points, or 0.59 percent, to 85,320.82. The broader NSE Nifty 50 also surged, gaining 148.40 points, or 0.57 percent, to close at 26,046.95.
However, analysts suggest that the near-term direction of the market will likely be influenced by global cues and macroeconomic factors such as WPI inflation, rupee movement, and Foreign Institutional Investor (FII) flows.
Nifty Technical Outlook
The Nifty index continues to trade above key moving averages, including the 20-day, 50-day, and 200-day EMAs, reinforcing a broader bullish sentiment. As long as the Nifty sustains above these levels, the market sentiment is expected to remain constructive with an upward bias. Immediate resistance is observed at 26,200, followed by 26,400 and 26,500. On the downside, support lies at 25,900 and 25,800, with a break below 25,700 potentially inviting further selling pressure.
According to Rajesh Bhosale, equity technical analyst at Angel One, the index finds support in the 25,950-25,700 range. He notes that the bullish gap formed on Friday around 25,950, aligning with the 20-day EMA, will act as immediate support.
Sensex Technical Outlook
Insights from Zerodha indicate that the Sensex formed a long lower wick, suggesting strong buying interest at lower levels. A clear bullish bias is expected to emerge if the Sensex moves above 85,700, followed by a breakout above the all-time high near 86,150, which will act as a major resistance zone. Conversely, a bearish outlook would be triggered below 84,500, with 84,150 serving as a crucial support level.
Stock market expert Dixena points out that the immediate challenge for the bulls is at the 85,800 level. A sustained move above this level could pave the way for further upside. Immediate support has moved up to 85,022, acting as a crucial intraday base.
Trading Strategy
Given the current market structure, analysts recommend a "buy-on-dips" strategy, while emphasizing the importance of maintaining strict stop-losses due to the potential for elevated volatility.
Sectoral Performance
On Friday, most sectors ended in the green, with Nifty Metal emerging as a top sectoral gainer. Key gainers among Sensex firms included Tata Steel, Eternal, UltraTech Cement, Larsen & Toubro, Maruti, and Bharti Airtel, while Hindustan Unilever, Sun Pharma, ITC, and Asian Paints were among the laggards.
Global Cues
European indices closed broadly positive, signaling risk-on undertones across major markets. This may provide mild support to Indian cyclicals, banking, and large-cap sectors during intraday trade.
Volatility
The India VIX, a measure of market volatility, slipped 2.81% to 10.10, indicating continued low-volatility conditions. However, analysts caution that low volatility can sometimes mask sudden intraday swings.
