Stock Market Technical Analysis | 22 to 26 Dec 2025 Weekly Wrap

Indian markets ended the week volatile yet positive, with Nifty gaining 0.29% to close at 26,042. Defence and small-caps outperformed, while banks lagged amid FII selling. Low India VIX and derivatives data indicate selective upside with defined resistance levels for Nifty and Bank Nifty.

Expert recommendation by:

• Mr. Ketan Kaushik - Derivative Analyst

Equity

• Benchmark Index traded volatile in the previous week before closing with 0.29% gain at 26042 level, continuing the consolidation phase observed in our analysis of the mid-December market movements. Banking Index underperformed the benchmark index as it closed with 0.10% cut at 59011 level.
• Among the Nifty constituents, SHRIRAMFIN and TRENT outperformed the benchmark index as they closed with 6.49% and 5.49% gains while HDFCLIFE and ASIANPAINT underperformed as they closed with 2.35% and 1.91% cut respectively, diverging from the broader consumer durables sector outlook. Among the Bank Nifty constituents CANBK outperformed the benchmark index as it closed with 1.00% gain while FEDERALBNK underperformed as it closed with 2.18% cut.
• Among sectors, NIFTYDEFENCE index outperformed the benchmark index during the previous week as it closed with 3.32% gain while NIFTYPSUBANK index underperformed as it closed with 0.84% cut. MIDCAP index lagged the benchmark index as it closed with 0.01% gain while SMALLCAP index outperformed the benchmark index as it is closed with 1.75% gain.
• Volatility index (India VIX) closed with 4.20% cut at 9.13 level.
• FII were net sellers as they sold stocks worth Rs 4291Cr while DII were net buyers as they bought stocks worth Rs 12024 Cr during the previous week in the cash segment.
• Globally, equity markets traded with positive bias as both US market (DJIA) and European markets (STOXX 600) closed with 1.20% and 0.20% gain respectively.

Derivatives

• Derivatives data for Nifty suggest max OI addition at 26200 call and 26000 put with max OI at 26100 call and 26050 put side (30th Dec expiry). Nifty cumulative PCR closed at 0.76 for Dec 26.
• Derivatives data for Bank-nifty suggest max OI addition at 59500 call and 59000 put with max OI at 59000 call and 58090 put side (30th Dec expiry). Bank-nifty cumulative PCR closed at 0.74 for Dec 26.

💡 Want to understand how derivatives drive these market swings?  
Master the basics of stock market derivatives here.

Performance:

Indices

Source: NSE

Sector Gainers/Losers

INDEX	Close	Weekly %Change
NIFTY AUTO	27739.85	0.30
NIFTY FMCG	55132.05	0.64
NIFTY IT	38572.3	-0.31
NIFTY METAL	10806.15	2.71
NIFTY PHARMA	22684.65	-0.29
NIFTY PSE	9759.5	2.35
NIFTY PSU BANK	8287.45	-0.84
NIFTY PVT BANK	28403.85	-0.03
NIFTY REALTY	883.15	-0.20
NIFTY MEDIA	1410.95	1.19
NIFTY IND DEFENCE	7774.35	3.32
NIFTY MIDCAP	60314.45	0.01
NIFTY SMALLCAP	17695.1	1.75

Source: NSE

FII / DII ACTIVITY (WEEKLY)

INDEX	Rs IN CR
FII	-4,291
DII	12,024

Source: NSE

SUPPORT/RESISTANCE LEVEL FOR UPCOMING WEEK

INDEX	BIAS	S2	S1	CLOSE	R1	R2
NIFTY	VOLATILE	25500	25700	26042.3	26350	26550
BANK NIFTY	VOLATILE	58000	58500	59011.35	59800	60200
FINNIFTY	VOLATILE	26800	27000	27430.75	27800	28000

Source: NSE

DAILY EXPONENTIAL MOVING AVERAGE

INDEX	CLOSE	9 DAYS	21 DAYS	50 DAYS	100 DAYS	200 DAYS
NIFTY	26042.3	26038	25994	25828	25521	25037
BANK NIFTY	59011.35	59152	59105	58489	57465	55878
FINNIFTY	27430.75	27482	27506	27370	27037	26326

Source: NSE

TECHNICAL OUTLOOK

NIFTY (WEEKLY)

• Benchmark index traded volatile in the previous week and closed with indecisive candlestick formation on the weekly chart
• Benchmark index is likely to trade volatile in the coming week
• Benchmark Index has support at 25,700 – 25,500 level and resistance at 26,350– 26,550 level

BANKNIFTY (WEEKLY)

• Banking index underperformed the benchmark index and closed with indecisive candlestick formation on the weekly chart
• Banking index is likely to perform in line with the benchmark index in the coming week
• Banking index has support at 58,500-58,000 and resistance at 59,800 -60,200 level

FINNIFTY (WEEKLY)

• FINNIFTY index outperformed the banking index and closed with indecisive candlestick formation on the weekly chart
• FINNIFTY is likely to trade in line with the banking index in the coming week
• FINNIFTY has support at 27,000-26,800 level and resistance at 27,800-28,000 level.

Turn insights into action — invest in Index ETFs and Derivatives now.  
Open your MNCL Demat Account today!

Market FAQs – Weekly Summary

How did Nifty and Bank Nifty perform last week?

Nifty ended the week with a 0.29% gain at 26,042, while Bank Nifty underperformed, slipping 0.10% to close at 59,011 amid stock-specific pressure.

Which sectors outperformed the market?

Nifty Defence emerged as the top-performing sector with a 3.32% gain, while small-cap stocks also outperformed, rising 1.75% during the week.

Which stocks led and lagged the benchmark?

SHRIRAMFIN and Trent were top Nifty gainers, while HDFC Life and Asian Paints underperformed. In Bank Nifty, Canara Bank outperformed, while Federal Bank lagged.

What does India VIX indicate?

India VIX declined 4.20% to 9.13, signaling reduced near-term volatility and a relatively stable risk environment for traders.

What are the key derivatives levels to watch?

Nifty shows strong OI at 26,100 call and 26,050 put, while Bank Nifty has major OI at 59,000 call and 58,090 put, indicating defined trading ranges.

Before You Trade, Strengthen Your Foundations with These Guides

• For a stronger understanding of indicators such as RSI, VWAP, and trendlines, check our 👉 Technical Analysis Fundamentals section.
• Want to refine your risk-reward planning? Explore our insights on 👉 Position Sizing & Risk Management Strategies.
• Understand the sectoral trends impacting stocks like Asian Paints. 👉 Consumer Durables Sector Analysis
• Learn how to interpret derivatives data for better trading decisions. 👉 Advanced Trading Strategies