Nifty 50, Sensex Today: Market Outlook for December 24 as Indices Consolidate

Indian equity markets are expected to open on a steady-to-positive note on Wednesday, December 24, tracking supportive global cues even as domestic benchmarks enter a phase of consolidation after the recent rally. With Wall Street ending at record highs following stronger-than-expected US economic data, sentiment in Asian markets has remained constructive, providing a favourable backdrop for local equities.

Early indicators suggest a mildly positive start. Gift Nifty was trading around the 26,230 mark, pointing to modest upside at the open. However, traders are likely to remain selective, as benchmark indices hover near key technical levels after last week’s rebound.

In the previous session, frontline indices ended largely flat, reflecting profit booking at higher levels. The Sensex slipped marginally to close near 85,525, while the Nifty 50 edged higher to settle around 26,177. Broader markets showed relative resilience, with midcap and smallcap indices managing incremental gains despite mixed global signals.

Market participants say the Sensex is holding above its recent breakout zone, indicating that the broader structure remains intact even as momentum cools. The index continues to trade above its short- and medium-term moving averages, reinforcing stability. Immediate support is seen in the 85,200–85,300 range, while upside may face resistance near 85,800, followed by the psychologically important 86,000 level.

In the derivatives segment, positioning suggests a gradual shift toward a buy-on-dips approach. Put writers have added significant positions near current levels, creating a cushion on declines, while call writers have pushed exposure to higher strikes. This indicates that traders are increasingly preparing for consolidation rather than a sharp reversal. The rising put-call ratio further reflects improving risk appetite and active defence of lower levels.

For the Nifty 50, analysts note that while the index faced resistance near 26,200 and paused its short-term advance, momentum indicators remain supportive. With volatility readings near historic lows, the broader tone remains constructive. The 26,000 zone is emerging as a strong support area, while a decisive move above 26,300 would be required to trigger fresh upside momentum. Until then, range-bound action with rotational sectoral participation is expected.

Bank Nifty, meanwhile, continues to move sideways, reflecting indecision among banking stocks. The index is oscillating within a defined band, with support near 58,800 and resistance around 59,500. A sustained breakout beyond this range is likely to dictate the next directional move.

As markets approach year-end, the absence of major domestic triggers and a holiday-shortened week may keep global developments and institutional flows in focus. For investors and market participants, disciplined tracking of trades, capital deployment and financial records becomes especially important during such consolidation phases an area where structured bookkeeping services in india quietly support informed decision-making and long-term portfolio discipline.

Overall, analysts believe the near-term outlook remains stable, with consolidation seen as a pause rather than a trend reversal. A selective, buy-on-declines strategy continues to be favoured, with emphasis on stocks showing relative strength rather than aggressive index-level bets.