The Nifty ended 5 points higher, while the Sensex was down by 43 points; near-term direction is likely to remain range-bound
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, 23 December 2025: Today, the benchmark indices witnessed narrow-range activity. The Nifty ended 5 points higher, while the Sensex was down by 43 points. Among sectors, buying was seen in selective oil and gas, FMCG stocks, while IT stocks registered profit booking at higher levels, resulting in the IT index shedding nearly 1 percent.
Technically, after a muted open, the entire day saw the market hover between 26,120/85,250 and 26,230/85,700, indicating intraday non-directional activity and indecisiveness between bulls and bears.
For day traders, now, 26,120/85,250 and 26,050/85,000 would be key support zones. As long as the market trades above these levels, the bullish sentiment is likely to continue. On the higher side, 26,250/85,800 would be the immediate breakout zone. A successful breakout of 26,250/85,800 could push the market up to 26,350-26,400/86,100-86,300. However, below 26,050/85,000, the uptrend would become vulnerable.
Gaurav Garg, Research Analyst Lemonn Markets Desk, adds
Indian equity benchmarks ended marginally lower on Tuesday, snapping a two-session winning streak, as markets lacked fresh triggers and foreign institutional investors resumed selling. The Sensex traded close to the flat line through most of the session before closing lower, while the Nifty slipped slightly below the 26,200 level despite intraday stability.
Market sentiment remained mixed. Global cues were largely supportive, with Asian markets trading higher and US futures steady, but domestic equities faced pressure from selective selling in index heavyweights, including Infosys and ICICI Bank. The absence of sustained buying interest following Monday’s rally contributed to some profit-taking.
Sectoral and stock-specific movements dominated trading. Cement stocks were in focus after Ambuja Cements announced board approval for a major merger involving ACC and Orient Cement, leading to gains of up to 10 percent in Ambuja Cements and Orient Cement shares. Railway and PSU-linked stocks such as IRCON, RVNL, and RailTel continued to see interest, supported by order inflows and expectations around upcoming policy developments.
In the broader market, select infrastructure and capital goods stocks advanced on project-related updates, while IT stocks showed mixed performance after recent gains. Shares of newly listed Meesho remained under pressure, extending their post-IPO correction.
Flows and macro indicators presented a mixed picture. Foreign institutional investors turned cautious after brief buying activity, while bond yields edged higher, with the 10-year government bond yield moving toward 6.70 percent amid supply-related concerns. The rupee remained relatively stable, supported by demand in the forward market, even as currency volatility stayed elevated.
Overall, equity markets appear to be consolidating near record levels, with stock-specific factors driving near-term moves. While broader conditions remain supported by global cues and longer-term expectations around monetary policy, near-term direction is likely to remain range-bound as investors monitor FII flows, interest rate trends, and year-end positioning.
