Indian equities hold in a range as Nifty and Bank Nifty navigate resistance and support zones

Indian equities ended the holiday-shortened week with modest gains, as Nifty closed at 26,042.30 and Sensex at 85,041. The move extended the recent recovery, while traders tracked mixed global cues and several domestic macro indicators. Attention now turned to the first trading days of calendar 2026, with December F&O expiry and key data in focus.

Market participants monitored November Industrial Production numbers, government budget value data and the final HSBC Manufacturing PMI print. Flows from Foreign Institutional Investors in the last week of 2025 also stayed under watch, as these trends often guide short-term sentiment. The Nifty’s weekly gain of 0.29% suggested that the broader upward structure remained intact despite volatility.

Nifty’s recent candles showed an inverted hammer on the weekly chart, indicating hesitation near higher levels, yet not a trend reversal. This pattern, combined with steady index gains, pointed to ongoing consolidation rather than a sharp breakdown. Traders assessed whether the index could move beyond nearby resistance and attempt fresh all-time highs.

"Nifty remains devoid of a clear directional bias, firmly entrenched within its broader trading band. Declines are consistently being absorbed near support zones, while rallies are facing rejection near the breakout neckline, highlighting an ongoing consolidation phase. This persistent tug of war indicates that buyers are preventing sharp corrective moves, even as sellers continue to cap upside potential in the 26,200-26,250 resistance zone," commented Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"On the downside, the 26,000-25,900 region has emerged as a crucial demand area and will be key to maintaining short-term stability. Aggressive option writing near at-the-money strikes by both sides suggests heightened uncertainty and a lack of conviction regarding the next directional move. A decisive breakout and sustained close above 26,250 could trigger a short-covering rally, potentially pushing the index towards fresh all-time highs near the 26,400 zone. Conversely, dips towards 25,900 are likely to attract buying interest, keeping the broader range-bound structure intact in the near term," Dhupesh Dhameja added.

Banking stocks lagged the headline index, making Bank Nifty outlook today more cautious relative to Nifty outlook today. Every recovery attempt in the banking gauge attracted supply, which limited any sustained rally. This pattern kept sentiment fragile around financials, even while the broader market held its ground.

"Nifty Bank continues to face selling pressure on every recovery attempt, keeping the near-term structure fragile. The broader setup remains vulnerable amid an extended consolidation phase, with sellers actively defending the 59,500-59,700 resistance band. On the downside, the 58,700-58,800 zone has emerged as a key demand area and will be pivotal in maintaining short-term stability," stated Dhupesh Dhameja.

"The heavy concentration of call writing near at-the-money strikes, alongside the gradual migration of put positions to lower levels, reinforces the prevailing sideways-to-negative bias. A decisive and sustained close above 59,500 could rekindle bullish momentum and open the path toward the 60,100 zone. Conversely, a breakdown below 58,800 may weaken the structure, invite fresh selling pressure, and pull the index toward the 58,500 level-thereby extending the ongoing consolidation phase," the analyst further added.

Alongside the index views, some individual stocks offered trading setups for the session on Monday, December 29. Technical analyst Riyank Arora of Mehta Equities Ltd. suggested two buy ideas after the Nifty’s inverted hammer signal on the weekly chart. The recommendations focused on Cipla and NTPC, both showing supportive price patterns and defined risk levels.

Cipla traded above important moving averages and showed buying demand on intraday declines, suggesting accumulation by market participants. Momentum, tracked through RSI, pointed higher and supported the bullish bias. Arora expected a sustained move beyond ₹1,515 to extend the advance towards higher targets, with risk defined at a nearby stop-loss.

NTPC maintained a steady uptrend, with price action forming a higher-base structure near ₹312 support. Momentum indicators stayed firm and positive, which signalled that the ongoing trend could continue. A close above a nearby resistance zone was seen as the trigger for further upside towards the mentioned objectives, while keeping the protective stop intact.

Stock	Recommendation	CMP (₹)	Stop-Loss (₹)	Target 1 (₹)	Target 2 (₹)
Cipla	Buy	1,506	1,470	1,550	1,580
NTPC	Buy	324.10	312	335	350

Cipla’s trade plan suggested that holding above ₹1,515 might allow a move towards ₹1,550 and ₹1,580. The trade idea placed a stop-loss at ₹1,470 to manage downside risk. NTPC’s setup expected price action above ₹326 to open room towards ₹335 and ₹350, with a stop-loss level maintained at ₹312.

Across indices and stocks, the overall picture stayed range-bound but biased towards stability, supported by buying near key demand zones. Upcoming macro releases and F&O flows during the December expiry week were likely to guide near-term volatility. Traders continued to track Nifty outlook today, Bank Nifty levels and stock-specific structures for short-term decisions.

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