The Indian stock markets, BSE and NSE, will observe three holidays this week, including December 25th (Christmas) and the default weekend holidays on December 28th and 29th. These closures make the trading week from December 23rd to 27th a holiday-shortened session.
Market sentiment continues to remain bearish, with Nifty 50 facing key support at 23,200 and resistance in the 23,800–23,900 zone. A breakout above these levels could potentially push Nifty towards 24,300 this week.
In the previous week, markets faced a significant correction. Sensex dropped by 3,485.81 points (4.25%), while Nifty 50 fell by 964.80 points (3.91%). Currently, the Sensex stands at 78,488.64 and Nifty at 23,738.20. The decline followed global cues, including a hawkish stance by the US Federal Reserve for 2025, signaling fewer interest rate cuts.
Puneet Singhania, Director at Master Trust Group, noted that the Indian benchmark indices snapped a four-week winning streak, with Nifty falling below its 200-day EMA, erasing nearly 80% of the past month's gains. The Bank Nifty saw over a 5% decline, while Sensex dropped below the critical 80,000 mark. Most sectors closed in red, except for pharma stocks, which posted marginal gains.
With profit-booking by foreign institutional investors (FIIs) and year-end holidays approaching, the market is expected to remain cautious. Investors are advised to monitor global trends and economic cues before making decisions.
