Indian stock markets gear up for a positive start on December 24, 2025, as GIFT NIFTY futures signal gains amid upbeat global cues. Traders eye whether NIFTY50 can sustain its bullish momentum above key levels after a flat close on Tuesday.
Market Overview and Recent Performance
NIFTY50 ended Tuesday’s session with a slim gain of just three points, closing at 26,172 after trading in a tight 100 point range. This came after a strong rally on Monday where the index jumped 638 points, driven by gains in IT, metal, and smallcap stocks.
Global markets provided a boost, with US indices closing higher for the fourth straight day on Tuesday. Technology and energy sectors led the charge, though caution lingered due to strong Q3 GDP data at 4.3 percent growth. This figure suggests the Federal Reserve might keep interest rates steady in upcoming meetings.
Asian markets followed suit on Wednesday morning, trading in the green. The Japanese Yen strengthened to 156 against the dollar, its third gain in a row, after Bank of Japan minutes hinted at tighter policy ahead.
In India, broader indices like Nifty Midcap 100 and Nifty Smallcap 100 closed flat last week, but smallcaps showed some outperformance with a 1 percent rise on Monday. Foreign investors turned net sellers on Tuesday, adding pressure, yet domestic buying held the line.
Traders now focus on NIFTY50’s ability to break past resistance. If it holds above 26,000, experts predict a push toward the record high of 26,326.
Key Technical Indicators for Wednesday
GIFT NIFTY futures pointed to a 30 point higher open for NIFTY50 on December 24, reflecting positive overnight cues from Wall Street.
Open interest data shows max call OI at higher strikes, suggesting bullish sentiment, while max put OI clusters around support levels.
Here is a quick look at key NIFTY50 levels for the December 30 expiry:
| Strike | Max Call OI | Max Put OI |
|---|---|---|
| 26,000 | High | Moderate |
| 26,100 | Moderate | High |
| 26,200 | Very High | Low |
| 26,300 | High | Moderate |
| 26,400 | Moderate | High |
Support sits at 26,000, a crucial zone. Resistance looms at 26,200; breaking it could spark fresh buying.
Volatility eased slightly, with India VIX down, but traders watch for any spikes amid holiday thinned volumes.
Logical reasoning points to sustained momentum if global positivity holds, especially with no major domestic data releases on Wednesday.
Sector Wise Trends and Stock Picks
IT stocks weighed on the index Tuesday, with Infosys, TCS, and Wipro among top drags, offsetting gains in energy and metals.
Energy names like Coal India and NTPC shone, while Shriram Finance led financials.
Recent events tie in: Railway stocks rallied for three days on fare hike news from December 26 and budget hopes. Metals benefited from global commodity surges, with silver hitting record highs above 214,000 rupees per kg, up 125 percent this year.
For Wednesday, experts recommend these stocks to watch:
- JK Tyre: Strong breakout potential amid auto sector recovery.
- Laurus Labs: Positive on pharma demand.
- ICICI Bank: Resilient in banking space.
- Sun Pharma: Gaining from health sector trends.
- HCL Technologies: IT rebound candidate.
- Kaynes Technology: Tech manufacturing upside.
- TD Power Systems: Power sector momentum.
- BEML: Infrastructure play.
Traders should monitor midcaps and smallcaps, which outperformed with 0.8 percent and 1 percent gains respectively on Monday.
Balance this with risks: Paint stocks like Akzo Nobel dipped on stake sales, and governance issues hit names like Kajaria Ceramics.
Global Cues and Economic Factors
US markets rallied, but strong GDP data tempers rate cut hopes. Fed’s potential steady rates could support equities if inflation stays in check.
In Asia, positive opens in major indices align with Wall Street’s tech led gains.
Domestically, rupee strength and foreign inflows bolster sentiment. Recent IPOs like Meesho surged 95 percent post listing, showing market appetite for new listings.
Gold and silver prices climbed on Fed cut bets and bank buying, adding to commodity linked stock gains.
However, caution prevails with thin trading volumes due to the Christmas holiday on December 25.
Potential Risks and Trading Strategies
Holiday seasons often bring low liquidity, amplifying moves from any news.
Key risks include sudden foreign outflows or geopolitical tensions.
Strategies for Wednesday:
- Buy on dips near 26,000 support.
- Target longs if 26,200 breaks.
- Use options for hedging, focusing on ATM strikes.
Experts advise tight stop losses given the range bound trade seen Tuesday.
Overall, logical flow suggests bullish bias if global cues hold, but a flat close remains possible without fresh triggers.
Outlook and What to Watch Next
NIFTY50’s setup leans positive for December 24, with potential to test highs if momentum builds.
Traders watch US futures and any yen movements for clues.
In this festive season, stay informed on market shifts. Share your thoughts on NIFTY50’s direction in the comments below, and pass this article to fellow traders for their views.
