Indian stock market: Nifty tops 26,000. Key technical levels to watch out next week

Indian stock market: Indian benchmarks closed on a higher note on Friday, December 19, breaking a four-session losing run, supported by a steady rupee, encouraging global signals, and the Bank of Japan’s policy outcome in line with expectations.

The Sensex climbed 448 points, or 0.53%, to finish at 84,929.36, while the Nifty 50 advanced 151 points, or 0.58%, to settle at 25,966.40. Broader markets outperformed, with the BSE Midcap index gaining 1.26% and the Smallcap index rising 1.25%.

“Indian equity markets ended the week on a buoyant note, with the Nifty 50 snapping a four-session losing streak to close at 25,966.40, decisively reclaiming the crucial 25,900 zone. The rebound was driven by broad-based buying across sectors, supported by a sharp recovery in the Indian rupee from its record lows against the US dollar and a return of foreign portfolio investors, who turned net buyers over the past two sessions,” said Ponmudi R, CEO - Enrich Money.

As we head towards the end of 2025, here are technical levels to watch out in the last week of December.

Nifty 50

According to Hitesh Tailor, Research analyst at Choice Broking, believes that the Nifty index witnessed notable volatility last week, registering a high of 26,047.15, after which profit- booking emerged from higher levels, leading to a brief corrective phase.

The decline extended toward a weekly low of 25,726.30, where the index found strong buying support within the 25,700–25,800 demand zone. Following this pullback, Nifty displayed resilience and staged a steady recovery in the latter part of the week, eventually closing at 25,966.40.

“As long as it sustains above these levels, market sentiment is expected to remain constructive and upward-biased. On the upside, immediate resistance is placed at 26,000, followed by 26,200 and 26,400. On the downside, support is seen at 25,900 and then 25,800, with a break below 25,700 likely to attract additional selling pressure. Given the current market structure, a buy-on-dips strategy remains appropriate, though traders should maintain strict stop-losses due to prevailing volatility,” Tailor said in a note.

Sensex

Ponmudi R of Enrich Money believes that the index continues to trade within a tight consolidation range just below all-time highs, supported by a well-defined ascending trendline.

“A convincing breakout above 85,000 could trigger the next leg higher toward 85,500–86,000. On the downside, 84,500–84,150 remains a strong demand zone where institutional buying interest continues to emerge,” R said.

Bank Nifty

Bank Nifty started the week on a positive note, moving higher and registering a weekly high of 59,533, closing the first session in the green. However, profit-booking emerged at elevated levels, leading to selling pressure over the next two consecutive sessions. This weakness dragged the index to a weekly low of 58,712.70, where strong buying interest was observed near the demand zone.

Hitesh Tailor of Choice Broking further said that the Bank Nifty staged a sharp recovery and managed to close the week at 59,069.20, highlighting renewed buying interest and resilience near key support levels. On the weekly chart, the index has formed a Doji candlestick pattern, reflecting indecision between bulls and bears after the recent up-move and indicating the possibility of short-term consolidation.

Tailor further suggested investors to remain constructive but disciplined, closely tracking 58,700 as a crucial support and 59,500 as the key resistance for near-term directional cues.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.