Nifty 50, Sensex Today: What to Expect from Indian Stock Market on December 16

Expectations for Indian equity markets suggest a cautious start for the Tuesday session, with the Sensex and Nifty 50 indices forecasted to move within a narrow range due to mixed global cues and technical resistance at higher levels.

On December 15, the domestic market broke its two-day winning streak and closed lower, though only slightly. The Sensex dipped by 54 points, equivalent to 0.06 percent, to finish at 85,213.36, while the Nifty 50 lost 20 points or 0.08 percent down to 26,027.30. The large-cap indices showed weakness, yet the broader markets gained momentum, with BSE Midcap index up by 0.16 percent and BSE Smallcap index up by 0.41 percent.

The total market capitalisation of companies listed on the BSE was steady at around ₹470.4 lakh crore, which was the result of buying interest in mid- and small-cap stocks.

Market Setup for December 16

According to early signs, the opening for Indian stocks will not be very exciting. GIFT Nifty was at approximately the 26,085 level during the trading session and was down roughly 5.5 points, which means that the benchmark indices are likely to have a flat-to-weak start.

Market experts think that the markets might keep moving sideways as the investors wait for a clear breakthrough from important technical areas.

Sensex Outlook

The Sensex is expected to remain range-bound in the near term, trading close to important moving averages. According to market analysts, the index is holding above critical support zones, indicating consolidation rather than a clear directional trend.

Mayank Jain, Market Analyst at Share.Market, said the Sensex structure mirrors that of the Nifty, trading near its 20-day moving average and comfortably above the 50-day average. He noted that holding above the 85,000–84,800 support band keeps the broader trend intact, though rising open interest at the 85,000 strike could lead to sharp intraday swings. Jain expects the Sensex to move within the 84,800–85,500 range, with a breakout on either side setting the tone for the next directional move.

Shrikant Chouhan, the leader of the Equity Research team at Kotak Securities, pointed out the numbers 84,850 and 84,600 as significant support levels. He mentioned that if these levels are maintained, the bulls might continue to dominate the market, while a breakout beyond 85,500 would take the index to 85,800. Nevertheless, according to him, if the index keeps on falling below these supports for a long time, it would have no choice but to give in to the bears.

Nifty 50: Key Levels to Watch

Analysts predict that the Nifty 50 index will be moving less in the tight range which is close to significant resistance levels and its short-term moving averages.

According to Amruta Shinde who is a Technical and Derivative Analyst at Choice Equity Broking, there is still low volatility in the market. India VIX has gone up a little and is currently at 10.25. She has also mentioned very active call writing at the strike price of 26,100 and considerable put open interest at 26,000, which is indicative of a clearly defined trading range. A closing above 26,300 for a considerable amount of time will be needed to revive the bullish momentum while otherwise, the consoildation phase may continue.

Nilesh Jain, who is a Head of Technical and Derivatives Research at Centrum Broking, stated that even though the index has stopped, it still shows strength after the recent price hikes. He said the Nifty has stayed above the level of 26,000, thus keeping the overall trend bullish as long as the levels of 25,900 and 25,770 are not broken. A strong move over 26,100 might lead to 26,250, and the buy-on-dips tactic is still applicable above 25,700.

Osho Krishan who is a Chief Manager at Angel One has taken note that even though there was a weak opening, the Nifty was able to turn losses for the day into gains and protect the essential 26,000 level. He pointed out immediate support at the level of 25,900-25,850, then the strong support at 25,750-25,700, while resistance stands above at 26,150-26,200. If the index breaks above this area, then it could go towards the new all-time high near 26,325.

Bank Nifty Outlook

On Monday, the Bank Nifty was relatively strong as it reopened with a gap-down but still managed to close higher at 59,462. The daily chart showing the bullish candle implies that there was buying interest at the lower levels.

Hrishikesh Yedve, who is AVP at Asit C. Mehta Investment Intermediates, commented that the index was under strong demand near its support levels. He singled out 58,800–58,900 as immediate support and 60,000–60,120 as a resistance zone, suggesting traders to buy near support and take profits close to resistance.

Vatsal Bhuva, a Technical Analyst at LKP Securities, said, meanwhile, that the Bank Nifty’s moving above its 20-day SMA was a signal of a short-term stability. He mentioned that the momentum indicators were still mixed but a close above 59,600 could lead to significant gains up to 60,500.

Overall Market View

Market analysts think Indian bourses are moving into a lull period when trading will be limited to certain price ranges and some stocks will be chosen for trading based on their fundamentals. The traders' attitude is to be careful, the method is to buy when prices dip above strong support levels, and the traders' eyes are on the resistance levels looking for breakout signals.

Disclaimer: The opinions and suggestions stated here are from single analysts and brokerage houses. Investors need to seek the advice of certified financial advisors before taking any investment decisions.