Stock Market Technical Analysis | 29-Dec-25 to 2-Jan-26 Weekly Wrap

Markets stayed resilient last week with strong sector rotation, banking leadership, and stock-specific alpha despite mixed global cues and rising volatility.

Expert recommendation by:

• Mr. Ketan Kaushik - Derivative Analyst

Equity

• Benchmark Index traded with positive bias in the previous week before closing with 1.10% gain at 26329 level. Banking Index outperformed the benchmark
  index as it closed with 1.93% gain at 60151 level.
• Among the Nifty constituents, NTPC and TATASTEEL outperformed the benchmark index as they closed with 8.64% and 8.14% gains while ITC and HCLTECH underperformed as they closed with 13.39% and 1.25% cut respectively. Among the Bank Nifty constituents INDUSINDBK outperformed the benchmark index as it closed with 6.19% gain while ICICIBANK lagged as it closed with 0.32% gain.
• Among sectors, NIFTYMETAL index outperformed the benchmark index during the previous week as it closed with 5.70% gain while NIFTYFMCG index underperformed as it closed with 3.72% cut. MIDCAP index outperformed the benchmark index as it closed with 1.74% gain while SMALLCAP index lagged the benchmark index as it is closed with 0.77% gain.
• Volatility index (India VIX) closed with 3.50% gain at 9.45 level.
• FII were net sellers as they sold stocks worth Rs 13,180Cr while DII were net buyers as they bought stocks worth Rs 17,767Cr during the previous week in
  the cash segment.
• Globally, equity markets traded mixed as US market (DJIA) closed with 0.67% cut while European markets (STOXX 600) closed with 1.26% gain.

Derivatives

• Derivatives data for Nifty suggest max OI addition at 27900 call and 26300 put with max OI at 27000 call and 26000 put side (06th Jan expiry). Nifty cumulative PCR closed at 1.46 for Jan 02.
• Derivatives data for Bank-nifty suggest max OI addition at 60300 call and 60000 put with max OI at 59500 for both call and put side (27th Jan expiry).
  Bank-nifty cumulative PCR closed at 1.18 for Jan 02.

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Performance:

Indices

Source: NSE

Sector Gainers/Losers

Source: NSE

FII / DII ACTIVITY (WEEKLY)

Source: NSE

SUPPORT/RESISTANCE LEVEL FOR UPCOMING WEEK

Source: NSE

DAILY EXPONENTIAL MOVING AVERAGE

Source: NSE

TECHNICAL OUTLOOK

NIFTY (WEEKLY)

• Benchmark index traded with positive bias in the previous week and closed with bullish candlestick formation on the weekly chart
• Benchmark index is likely to trade with positive bias in the coming week
• Benchmark Index has support at 26,050–25,900 level and resistance at 26,700–26,900 level

BANKNIFTY (WEEKLY)

• Banking index outperformed the benchmark index and closed with bullish 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 59,500-59,000 and resistance at 61,000 -61,500 level

FINNIFTY (WEEKLY)

• FINNIFTY index performed in line with the banking index and closed with bullish 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 27,600-27,400 level and resistance at 28,300-28,500 level.

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Market FAQs – Weekly Summary

1. How did Nifty and Bank Nifty perform last week?

Nifty gained 1.10% to close at 26,329, while Bank Nifty outperformed with a 1.93% rise, ending near 60,151 due to strength in select banking stocks.

2. Which stocks outperformed and underperformed?

NTPC and Tata Steel led Nifty gains, while ITC and HCL Tech underperformed. In Bank Nifty, IndusInd Bank outshined, whereas ICICI Bank lagged.

3. Which sectors showed strength?

Nifty Metal emerged as the top-performing sector, while FMCG remained under pressure. Midcaps outperformed smallcaps during the week.

4. What does derivatives data indicate for Nifty?

High open interest at 27,000 call and 26,000 put with a PCR of 1.46 signals a volatile yet range-bound market in the near term.

5. How are FIIs and DIIs positioned?

FIIs remained net sellers, while DIIs absorbed supply with strong buying, helping markets maintain a positive bias.

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