26 December 2025: Gift Nifty indicates a flat-to-positive opening for Indian stocks

The Nifty continues to face obstacles at the 26,200 mark, snapping a three-day winning streak in the process on Wednesday, ending at the lows of the day. However, key support levels remain intact.

Sensex Today | Stock Market Updates:

Indian equities will resume trading after the Christmas holiday on the final trading day of the last full trading week of 2025. Participation will continue to remain low as most global equities continue to remain shut today as well.

The Nifty continues to face obstacles at the 26,200 mark, snapping a three-day winning streak in the process on Wednesday, ending at the lows of the day.

However, key support levels remain intact, with the index still managing a higher high and a higher low on the charts, despite the last hour’s fall. 26,100-26,150 continues to remain a support zone for the index, even as it struggles to cross the 26,200-26,250 range to make a move towards the recent record high of 26,325.

Broader market breadth also turned negative on Wednesday, with more stocks declining compared to the gainers. 59,500 remains a barrier for the Nifty bank as well, even as it looks to protect 59,000 on the downside.

In today’s session, keep an eye on the seven names whose lock-in ends, along with IndusInd Bank, Vikran Engineering, Castrol India, and Strides Pharma, among others.

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Indian equity benchmarks are expected to trade within 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 the Nifty and Bank Nifty, with stock-specific action driving movement amid thin volumes following the Christmas holiday.

Stock Market Outlook Today on December 26, 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 indexes 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 the 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 amidst 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 the 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 has been 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 increment.”

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 amidst 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 channelled, 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.”

The Indian equity benchmarks are set to open lower on Friday, December 26, as indicated by the GIFT NIFTY futures. NIFTY futures at GIFT City in Ahmedabad declined 0.24% or 62 points to 26,115 despite positive cues from Asian markets.

The Indian equity benchmarks ended lower on Wednesday, December 24, dragged down by losses in index heavyweights such as Reliance Industries, ICICI Bank, Infosys, Sun Pharma, InterGlobe Aviation, Hindustan Unilever and Larsen & Toubro. The SENSEX fell as much as 183 points and the NIFTY50 index touched an intraday low of 26,123.

The SENSEX ended 116 points lower at 85,409 and the NIFTY50 index declined 35 points to close at 26,142.

Ponmudi R, CEO of Enrich Money, said that US equities closed at record highs amid holiday-thinned volumes and growing expectations of further interest rate cuts by the US Federal Reserve, while a buoyant tone across Asian markets is providing a supportive global backdrop as Indian equities reopen after the Christmas break. While the medium-term structural outlook remains constructive, thin liquidity conditions and year-end book-squaring are likely to cap sharp directional moves in the near term, keeping investor sentiment cautiously optimistic at the open, with the GIFT Nifty indicating a flat start around the 26,100–26,150 zone.

Global stocks in the Asia-Pacific region are trading in the green in the early trade on Friday.

According to Motilal Oswal Financial Services, “As we enter 2026, Indian equity markets are trading close to all-time highs, with the Nifty ending CY25 with gains of nearly 10 per cent on a year-to-date basis.”

After a phase of consolidation in 2025, the market is expected to deliver steady growth in CY26, supported by a recovery in corporate earnings and a gradual revival in private sector investments. Recent and forthcoming government policy measures should further aid this recovery. The Union Budget 2026 will be a key event to watch, as it is likely to set the direction for FY2026-27.

From a valuation standpoint, the Nifty-50’s one-year forward P/E stands at 21.5x, around 4 per cent above its long-period average (LPA) of 20.8x. In comparison, valuations in the broader market remain elevated. The Nifty Midcap-100 and Nifty Smallcap-100 are trading at P/E multiples of 28.3x and 25.9x, representing premiums of around 26 percent and 50 percent over their respective long-term averages. “This suggests that large-cap valuations are relatively more reasonable after recent consolidation, while midcap and small-cap stocks warrant a more selective approach, with a focus on companies that have strong balance sheets, sustainable cash flows and clear earnings visibility,” it said.

India’s long-term structural growth story remains intact

Nifty supported by favorable demographics, rising digital adoption, increasing financialisation of household savings, and continued reform momentum The government’s ongoing policy initiatives will help restore the trajectory of corporate earnings over the medium term. Additionally, any resolution of the tariff stalemate with the US could act as an important external catalyst for markets, according to Motilal Oswal.

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