Weekly Jotting ~ For the upcoming week (December 29, 2025 – January 2, 2026), global stock markets anticipate a holiday-shortened week with light trading volumes and a continued focus on economic data releases. Indian markets are expected to trade with a sideways-to-bullish bias, with a "buy-on-dips" strategy recommended.
General Market Outlook
Trading volumes are expected to be lighter than usual due to the holiday season, which may lead to increased volatility. Key global factors influencing the market include:
Global Central Bank Actions: Following recent actions by the Federal Reserve and Bank of Japan, market participants are processing the implications of varied monetary policies. The Fed is generally seen as having an easing bias for 2026.
Economic Data: Several data points, including bank lending/deposit growth in India and industrial profits in Mainland China, are scheduled for release.
Indian Market (Nifty & Sensex) Specifics
The Indian benchmark indices, Nifty 50 and Sensex, are currently in a positive technical trend.
Bias: Sideways to Bullish, with a "buy-on-dips" strategy.
Key Levels (Tentative for the week Dec 29 - Jan 2):
Nifty 50: Support is anticipated around 25,900-25,700, while resistance is seen at 26,200-26,500.
Sensex: Expected to trade within a range of 84,461 and 85,621.
Bank Nifty: Currently in a negative technical trend, with critical resistance at 59,457.
Sectors to Watch:
Recent market activity has shown momentum in specific sectors:
Metals & Mining, Software & Services, and Hotels & Restaurants were among the top-performing sectors over the last week.
Railway-related shares (IRFC, RVNL) have recently seen significant gains due to news like fare hikes and high volumes.
Key Events & Releases (Dec 29, 2025 – Jan 2, 2026)
The economic calendar for the week includes several key data releases:
Monday, December 29: No major global economic events scheduled.
Tuesday, December 30: No major global economic events scheduled.
Wednesday, December 31: No major global economic events scheduled.
Thursday, January 1: New Year's Day holiday for many global markets, including India, Canada, Germany, Italy, and the UK.
Friday, January 2: Bank loan and deposit growth data in India, and the Baker Hughes US oil rig counts.
Key Insights~
Consolidation Expected: Major indices like the Nifty and Sensex are expected to remain within defined support and resistance levels. The low trading volume typical around year-end suggests that any major directional move is unlikely without a significant external catalyst.
Technical Levels: The Nifty is expected to find support around 25,900-25,700 and face resistance at 26,200-26,500. The Sensex has support at 84,860 and resistance at 85,301.
Cautious Sentiment: Despite a general broader market strength and a "buy-on-dips" strategy prevailing among investors, caution is advised due to ultra-low volatility, which can sometimes precede a sharper move.
Global Cues: US markets are near record highs, supported by optimism for future interest rate cuts and strong corporate earnings, which could provide positive global cues. Key data releases to watch include the US Initial Jobless Claims and China's data set for release on December 31.
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