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Stock market recap: Frontline indices, Sensex and the Nifty 50, ended flat on Tuesday, 23 December, on profit booking at higher levels, even as mid and small-cap segments ended with modest gains amid mixed global cues.

The Sensex ended with a minor loss of 43 points, or 0.05%, at 85,524.84, while the Nifty 50 closed 5 points, or 0.02%, up at 26,177.15. The BSE Midcap index inched up by 0.07%, and the Smallcap index rose by 0.38%.

Select heavyweights, such as Infosys, Bharti Airtel, and ICICI Bank, were among the top drags on the benchmarks, while HDFC Bank and ITC were among the key supports.

Buy: Bajaj Auto Ltd (current price: ₹420)

Buy: S.J.S. Enterprises Ltd (current price: ₹1,780)

Indian equities ended Tuesday’s session marginally higher in a range-bound and stock-specific trade, with benchmark indices consolidating near recent highs. Nifty 50 closed at 26,177.15, up 4.75 points (+0.02%), after oscillating within a narrow intraday band of 26,119–26,234, reflecting cautious positioning ahead of year-end cues. Sensex ended largely flat, mirroring the lack of strong directional triggers.

On the sectoral front, gains were led by Financials and FMCG, with Nifty Financial Services ex-Bank and FMCG indices rising between 0.8% and 0.5%, respectively, supported by select private lenders and defensive buying. Metals and Media also saw modest upticks.

In contrast, IT stocks underperformed, with Nifty IT declining 0.8%, weighed down by concerns over near-term global tech spending, while PSU Banks and Healthcare also closed marginally lower. Market breadth was moderately positive, with 1,835 stocks advancing, 1,321 declining, and 108 remaining unchanged, indicating selective accumulation beneath the surface

From a technical standpoint, Nifty 50 continues to display constructive price action, with the index sustaining a position above its rising short-term and medium-term moving averages, thereby reinforcing the prevailing bullish bias. The recent rebound from lower levels has respected the upward-sloping trendline, highlighting the presence of buyers on intraday and positional declines and confirming the integrity of the ongoing uptrend. Momentum indicators are also turning supportive.

The relative strength index (RSI) has moved back above its signal line and is trending upward, suggesting a recovery in bullish momentum without entering overbought territory. This indicates scope for further upside while maintaining healthy momentum conditions. Meanwhile, the MACD remains below its peak but shows early signs of stabilization, with the histogram contracting on the negative side, pointing to a gradual reduction in bearish momentum.

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.

The index delivered a strong close, comfortably reclaiming the 21-DMA and holding above the key psychological mark of 26,000, which reinforces near-term bullish sentiment. 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.

Bank Nifty opened the session on a flat-to-positive note and spent the day consolidating within a narrow range, reflecting indecision among market participants. The index eventually formed a small bearish candle on the daily chart, indicating mild profit booking at higher levels. However, this price action does not signal a trend reversal, as the broader bullish momentum remains firmly intact.

Importantly, Bank Nifty continues to trade well above its key short-, medium-, and long-term moving averages, highlighting strong underlying trend strength. The ongoing consolidation appears to be of a healthy nature and may help establish a base for the next directional move, maintain a positive overall outlook.

The momentum indicator, the relative strength index (RSI) is currently positioned around 55, indicating moderate strength but lacking strong bullish momentum. At the same time, the moving average convergence divergence (MACD) has witnessed a negative crossover, suggesting short-term caution and possible consolidation.

According to O’Neil’s methodology of market direction, Nifty BANK is in a Confirmed Uptrend. This indicates that despite near-term momentum indicators showing mixed signals, the primary trend remains positive. As long as price action stays constructive and key support levels are respected, the broader market structure continues to favour an upward bias.

The index continues to trade comfortably above all its key moving averages, indicating a healthy underlying trend with no immediate signs of structural weakness. On the upside, the recent high in 59,800–60,100 represents an important resistance band to watch closely, with a decisive breakout required to open the door for further upside. On the downside, 58,500–58,000 remains a critical demand area, supported by consistent buying interest across major banking stocks.

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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