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The Indian equity benchmarks concluded the final session of 2025 on a firm note, snapping a four-day losing streak as value buying emerged across sectors.

Nifty 50 advanced 190.75 points (0.74%) to close at 26,129.60, while S&P BSE Sensex rose 545.52 points (0.64%) to settle at 85,220.60.

Market sentiment was primarily bolstered by the metal sector, which surged following the government’s announcement of a three-year import tariff on select steel products to curb cheap shipments from China.

JSW Steel (+4.8%) and Tata Steel (+2.4%) emerged as top gainers, leading Nifty Metal to a 1.43% rise. The overall market breadth was positive, as reflected in an encouraging advance-decline ratio, with mid-cap and small-cap indices outperforming the front liners.

While thin year-end volumes and sustained FII outflows remained headwinds throughout December, the session highlighted resilient domestic liquidity. Looking ahead, the focus shifts to Q3 corporate earnings and January auto sales data, which will be critical in determining whether the current rebound can be sustained.

Two stock recommendations by MarketSmith India:

Buy: Hindalco Industries Ltd (current price: ₹886)

Buy: Fertilizers and Chemicals Travancore Ltd (current price: ₹912)

Nifty recap

Indian equities ended the final trading session of the year on a firm note, supported by broad-based buying and strong sectoral participation. Nifty 50 settled at 26,129.60, up 0.74% or 190.75 points, after oscillating within a day’s range of 25,969–26,188, indicating sustained intraday demand near lower levels. Sensex mirrored the positive momentum, closing comfortably higher, as investors positioned themselves for the year-end amid stable global cues.

Market breadth was decisively positive, with 2,222 stocks advancing against 936 declines, underscoring healthy risk appetite across the broader market. On the sectoral front, Oil and Gas, Consumer Durables, Media, Metals, and Auto stocks led the gains, reflecting continued interest in cyclical and consumption-linked themes. Financials were supportive, with private banks and diversified financial services contributing steadily, while FMCG and Pharma also closed higher. IT was the sole notable laggard, ending marginally in the red amid selective profit-taking.

From a technical standpoint, Nifty 50 continues to display a constructive price structure, ending the session at 26,129 after holding above key short- and medium-term moving averages. Momentum indicators are neutral-to-positive. The RSI (14) is placed near the mid-50s, indicating a healthy balance between buyers and sellers without entering overbought territory.

The recent RSI behavior suggests consolidation rather than exhaustion, which consists of a pause within an ongoing trend rather than a reversal. Meanwhile, the MACD remains above the zero line, though the histogram has flattened, pointing to moderating momentum. The narrowing gap between the MACD and signal line highlights a phase of consolidation, but the absence of a sharp bearish crossover suggests downside momentum remains limited.

According to O'Neil’s methodology of market direction, the market status has shifted to a "Confirmed Uptrend" as it decisively surpassed its previous rally high of 25,670 to register a new 52-week. Looking ahead, we will maintain a Confirmed Uptrend stance as long as market action remains constructive. However, if the distribution day count rises or Nifty breaches key support levels, we may shift the outlook back to an Uptrend Under Pressure to reflect elevated risk.

The index concluded the session higher and continued to trade within the range 25,700-26,300. From here, a decisive close above 26,300 would meaningfully improve the technical setup and is likely to open the door for a continuation of the ongoing rally toward 26,500–26,700 in the near term. On the downside, 25,700 serves as the first level to monitor for any corrective move, while the 25,300 region represents a critical demand area.

How Nifty Bank performed?

Nifty Bank opened the session on a firm footing and sustained its positive momentum throughout the trading day, reflecting improving market sentiment. On the daily chart, the index formed a bullish candlestick pattern marked by a higher-high and a higher-low price structure, indicating a continuation of the short-term uptrend.

Notably, the index successfully reclaimed its 21-DMA, reinforcing a positive technical bias and signaling renewed buying interest at lower levels. The index began the day at 59,194.60, moved steadily higher to register an intraday high of 59,766.20, and witnessed limited downside with a low of 59,187.10. It eventually closed near the day’s highs at 59,581.85, ending with a gain of 0.69%. This price action suggests strengthening momentum and an improved near-term outlook for banking stocks.

The momentum indicator, RSI, is gradually trending higher and is currently positioned near 60, indicating improving momentum. At the same time, MACD has formed a negative crossover, pointing to some short-term selling pressure.

However, MACD continues to remain above the zero line, suggesting that the broader underlying trend remains intact. Despite these mixed technical signals, Nifty Bank remains classified as a Confirmed Uptrend as per O’Neil’s methodology of market direction, indicating that the prevailing trend continues to be constructive.

The index displayed notable resilience over the past two trading sessions, rebounding decisively from its 50-DMA and subsequently reclaiming the 21-DMA, reflecting improving near-term strength.

On the upside, 59,800–60,100 stands out as a critical resistance band, and a sustained breakout above this range would be necessary to re-establish a stronger bullish bias. On the downside, 58,500–58,000 continues to act as a solid support area, underpinned by selective buying in frontline banking stocks, which has so far contained deeper corrective pressure.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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