Indian Stock Market Outlook for 26 December 2025: Nifty & Bank Nifty

This blog provides a detailed outlook for the Indian stock market on Friday, 26 December 2025, covering Nifty 50, Bank Nifty, intraday levels, options strategies, sector trends, and risk management insights.

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➜ Overall Market Sentiment

• Market Bias: Sideways to Mildly Bullish
• Volatility: Low (options writers active)
• Market Phase: Year-end consolidation
• Preferred Strategy: Buy on dips and range trading

Low volatility and stable heavyweight stocks indicate that the market may continue consolidating within a defined range rather than showing aggressive directional movement.

⬆ Back to Top

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➜ Nifty 50 Outlook – 26 December 2025

Key Technical Levels

Level Type	Index Level
Immediate Support	26,000
Major Support	25,850
Immediate Resistance	26,250
Major Resistance	26,350

Technical Interpretation

Nifty remains technically stable above the 26,000 support zone. A breakout above 26,250 may result in short covering, while a break below 25,850 could invite short-term selling pressure.

Intraday Trading Plan

• Buy on dips near 26,020 – 26,050
• Targets: 26,220 / 26,300
• Stop Loss: 25,950

⬆ Back to Top

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➜ Bank Nifty Outlook – 26 December 2025

Key Technical Levels

Level Type	Index Level
Immediate Support	58,800
Strong Base	58,500
Immediate Resistance	59,400
Breakout Zone	59,600+

Technical Interpretation

Bank Nifty is consolidating with support from private sector banks. A sustained move above 59,400 may trigger upside momentum, while failure to hold 58,800 could keep the index range-bound.

Intraday Trading Plan

• Buy above 59,050
• Targets: 59,400 / 59,600
• Stop Loss: 58,750

⬆ Back to Top

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➜ Options Trading Strategies

Nifty Options (Range Strategy)

• Sell 26,500 CE
• Sell 25,800 PE

Bull Call Spread:

• Buy 26,000 CE
• Sell 26,300 CE

Bank Nifty Options

• Sell 59,800 CE
• Sell 58,500 PE

Bull Put Spread:

• Sell 58,800 PE
• Buy 58,300 PE

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➜ Sector-wise Outlook

• Strong / Stable: Private Banks, FMCG, Capital Goods
• Range-Bound: IT, Metals
• Avoid for Intraday: Low-liquidity PSU midcaps

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➜ Risk Management Notes

• Year-end trading volumes are typically low
• False breakouts are common in low-volatility markets
• Use strict stop-losses and avoid over-leveraging

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➜ Final Market View

On 26 December 2025, the Indian stock market is expected to remain range-bound with a mildly positive bias. Buying on dips and option-selling strategies are likely to be more effective than aggressive directional trades.