Indian stock market: The key Indian indices, Sensex and Nifty 50, were expected to open flat with a negative bias on Tuesday, December 30, amid thin trading volumes and weak cues from global markets.
Early signals from the Gift Nifty also suggested a subdued start for domestic equities, with the index trading near the 25,936 level—down 29 points or 0.11% from the previous close of Nifty futures.
On Monday, December 29, Indian markets ended lower due to low participation and the absence of strong triggers, keeping investors cautious, fuelling expectations of a near-term consolidation. Persistent selling by foreign institutional investors further weighed on sentiment. The BSE Sensex fell for a fourth straight session, dropping 345.91 points, or 0.41%, to close at 84,695.54, while the NSE Nifty 50 declined for the third consecutive day, losing 100.20 points, or 0.38%, to finish at 25,942.10.
On the Nifty options front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL, said that Maximum Call OI is at 26100 then 26200 strike, while Maximum Put OI is at 25900 then 26000 strike.
“Call writing is seen at 26000 then 25950 strike while Put writing is seen at 25900 then 25850 strike. Option data suggests a broader trading range in between 25500 to 26300 zones while an immediate range between 25700 to 26100 levels,” said Taparia.
According to Taparia, Nifty index opened slightly positive and after its attempt to cross 26100 zones, it failed to hold its morning highs and drifted lower.
“It took support near 25900 levels but remained in pressure to close with losses of around 100 points. It formed a bearish candle on the daily frame and has started to form lower highs – lower lows from the last two sessions. Now till it holds below 26000 zones, weakness could be seen towards 25800 then 25700 zones while hurdles are placed at 26150 and 26250 zones,” he said.
Bank Nifty index opened on a flattish note and extended the momentum towards 59150 zones in the initial hour of the session. However it failed to hold at higher zones and gradually drifted lower towards 58800 levels.
“It formed a small bearish candle on daily scale as selling pressure is seen at higher zones. Now till it holds below 59000 zones some weakness could be seen towards 58750 then 58500 levels while on the upside hurdle is seen at 59250 then 59500 zones,” he added.
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The stock is in an overall uptrend and is respecting its 20 DEMA support zones, with slight dips being bought into. The ADX line is rising, which confirms the strength of the uptrend.
Stock has negated its Lower lows formatting on the daily chart and headed up with higher-than-average traded volumes. The RSI momentum indicator is rising, which confirms the positive sentiment.
Stock has given a trend-line breakdown below, accompanied by a strong-bodied bearish candle on the daily chart. The MACD line is declining to support the downward momentum.
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.
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