Stock Market Outlook Today, 26 Dec: Sensex, Nifty Consolidation Continues; Gold, FII Flow to Influence Trading

Indian equity benchmarks are expected to trade in a narrow range on December 26, 2025, as investors digest recent global cues and domestic trends. After a volatile session on December 24, analysts anticipate consolidation in Nifty and Bank Nifty, with stock-specific action driving movement amid thin volumes following the Christmas holiday.

Stock Market Outlook Today on 26 December 2025: Sensex, Nifty Prediction After Christmas Holiday

The Indian stock market ended marginally lower on December 24 in a volatile, low-volume session as trading activity remained subdued ahead of the Christmas holiday. The Sensex fell 116.14 points, or 0.14%, to 85,408.70, while the Nifty declined 35.05 points, or 0.13%, to 26,142.10.

Stocks in Focus Today: Check Latest Top Gainers and Top Losers

Except for Media, Metals, and Realty, all sectoral indices finished in the red, with IT, Oil & Gas, Pharma, and PSU Bank stocks slipping around 0.4% each. The midcap index dropped 0.6%, while the small-cap index ended slightly higher, up 0.28%.

By Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, "Nifty ended marginally lower by 37 points at 26,140 (-0.1%) as profit-booking emerged in select sectors. Stronger-than-expected U.S. GDP growth (4.3% vs expected 3.3%) buoyed global risk appetite; however, investor sentiment was tempered by continued FII outflows (-Rs 1,795 crore on Tuesday). Broader markets remained mixed."

Khemka further noted that "Nifty Midcap100 declined -0.6%, while Nifty Smallcap100 ended with gains of 0.3%. Among sectors, metals, realty, and auto were in mild green, while Oil and Gas, IT, and Pharma indices closed with losses in the range of 0.4-0.7% each."

Gold Among Key Factors To Drive Market Sentiment Today

Gold-financing stocks rallied as gold prices soared to lifetime highs amid geopolitical concerns and expectations of further rate cuts by the U.S. Federal Reserve. On the macro front, investors will track the U.S. Jobless Claims data, which is set to be released later today. Khemka expects Indian equities to trade in a narrow range this week amid lack of triggers and reduced trading activity due to holidays across global markets.

Nifty Prediction Today on 26 December 2025

According to Bajaj Broking Research, "The index formed a small bearish candlestick pattern with a long upper shadow, mostly contained inside the previous session's high-low range, signaling consolidation amid stock-specific action. Nifty is seen consolidating in the last two sessions after a preceding three-session up move, highlighting a positive bias."

The brokerage expects immediate support around 26,000 near Monday's gap-up zone, while resistance is placed at 26,300, the upper band of the recent consolidation range. "Nifty in the last four weeks has been consolidating in the range of 26,300-25,700. We expect the index to extend the same, and only a move above 26,300 will unlock incremental upside potential towards the 26,500 area," Bajaj Broking added.

Bank Nifty Outlook Today

On Bank Nifty, Bajaj Broking noted, "The index formed a bearish candlestick pattern signaling profit booking at higher levels near last week's high of 59,500. The index is consolidating amid stock-specific action."

They added, "We expect the index to extend consolidation and form a base in the range of 58,500-60,100 in the coming weeks. A strength above last week's high of 59,533 will open upside towards the recent all-time high of 60,100 levels. The entire up move of the last two months is well channeled, signaling sustained demand at elevated levels. Key support is placed at 58,300-58,600 levels, being the confluence of the 50-day EMA and recent breakout area."

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