The Defence index outperformed today, rallying over 3 percent.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, 22 December 2025: Today, the benchmark indices witnessed a promising rally. The Nifty ended 206 points higher, while the Sensex was up by 638 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Defence index outperformed today, rallying over 3 percent. Technically, after a gap-up open, the market maintained positive momentum throughout the day. On daily charts, it has formed a long bullish candle and closed above the 20-day SMA (Simple Moving Average), which is largely positive.
We are of the view that the short-term market texture is bullish, but buy on intraday dips and sell on rallies would be the ideal strategy for day traders. On the downside, 26,100/85300 and 26,050/85000 would act as key support zones, while 26,200/85700 would serve as an immediate resistance zone for the bulls. A successful breakout above 26,200/85700 could push the market towards 26,320–26,350/86000-86200. However, below 26,050/85000, the uptrend would become vulnerable.
Gaurav Garg, Research Analyst Lemonn Markets Desk, adds;
Indian equity benchmarks extended their rally on Monday, supported by positive global cues, renewed foreign fund inflows and easing rate expectations. The Sensex climbed nearly 600 points to trade around 85,525, while the Nifty advanced about 0.7 percent to 26,158, marking a continuation of the previous session’s gains. Market sentiment was boosted as FIIs turned net buyers after a prolonged selling streak, adding to confidence already supported by steady domestic institutional participation. Expectations of interest rate cuts by the US Federal Reserve next year further lifted risk appetite, especially in rate-sensitive and globally linked sectors.
IT stocks led the rally, with Infosys and Wipro gaining up to 4 percent, aided by a surge in ADRs, softer US inflation signals and hopes of further Fed easing.
Financials such as Shriram Finance also outperformed, while losses were limited in a few defensive names like UltraTech Cement and SBI Life.Globally, Asian markets traded higher, tracking gains on Wall Street, while a strengthening rupee, which appreciated sharply against the US dollar , added to domestic optimism by easing inflation concerns and improving foreign investor sentiment.On the technical front, we believe the Nifty holding above recent lows suggests a possible short-term bottom, with upside potential towards 26,300-500. However, failure to sustain above the 25,980 zone could lead to consolidation. Overall, the near-term outlook appears
constructive, with year-end momentum likely to hinge on currency moves, FII flows and global central bank signals.
