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Stock market recap: The Indian stock market witnessed healthy cross-segment buying on the last day of 2025, driven by short covering triggered by optimism that the coming year will be better than the current one, due to anticipated earnings growth, a potential India-US trade deal, and the return of foreign investors to the Indian market.

The Sensex jumped 546 points, or 0.64%, to close at 85,220.60, with Reliance Industries, Kotak Mahindra Bank, and Axis Bank as the top contributors to the gains. The Nifty 50 settled at 26,129.60, rising 191 points, or 0.74%. The BSE Midcap index rose by 1%, while the Smallcap index jumped 1.19%.

Investors earned nearly ₹4 trillion in a single session as the overall market capitalisation of BSE-listed firms rose to nearly ₹476 trillion from ₹472 trillion in the previous session.

ICICIPRULI: Buy above ₹670, stop ₹650 target ₹715 (Multiday)

360ONE: Buy above ₹1195, stop ₹1155 target ₹1265 (Multiday)

ADANIENSOL: Buy above ₹1030, stop ₹1008 target ₹1065 (Intraday)

On 31 December, Indian equity benchmark indices staged a sharp rebound, breaking their recent losing streaks as renewed buying interest in metal stocks lifted sentiment. The Sensex surged 668 points, or 0.79%, to close at 85,343.12, while the Nifty advanced 219 points, or 0.85%, to 26,158.20 after four sessions of decline. Gains were led by JSW Steel, Tata Steel and Titan Co., which rallied up to 5%, whereas Tata Consultancy Services and Bajaj Finance slipped nearly 1%.

Market breadth was firmly positive, with 2,598 shares advancing against 1,216 declines. Volatility cooled as India VIX dropped over 3 percent to 9.37, signalling reduced investor anxiety and improved risk appetite.

Bargain hunting after the recent correction supported value buying, while mid- and small-cap indices also rose nearly 1%, underscoring broad-based strength. As we head into the next few days, we need to review the sustained FII selling. The lack of fresh global triggers remain key headwinds despite the market’s upward potential.

Our hopes got a strong boost yet again this Wednesday as the 2025 drew to a close. The Nifty retained the positive sentiment despite some negative global cues indicating that the trends continue to exude positive bias. The scampering by short holders with the week ending brought about a fair amount of volatility and the markets retained the bullish tone set at the start of the day. However, we can observe that the market is still attempting to stage an upward run and will need some time to stabilize before it sets the pace for the trend recovery.

Despite the lack of enthusiasm seen in the last week shown last week the markets drifted into a sideways phase. The geo-political tensions continue to remain steadfast thus keeping any possibility of recovery at bay. With the trends remaining sanguine it becomes necessary for us to scale down our approach to the market as a whole.

The important part here is that at every possible the markets are seen heading higher. It is easier to target stock specific action instead of the broader indices. Right now, no clear synergy between the three main indices Nifty, Bank Nifty and IT one needs to see how the relevant stocks are performing.

Moving to the charts we note that the prices are continuing to exhibit a slow and steady move to the upside which is highlighting bullish bias remains subdued and finding buying interest at lower levels. However , we should note that despite repeated attempt to move higher Nifty had not been able to move beyond 26500. The consolidation seen at the TS & KS lines shows that there is an alternating position getting created is indicating that the markets are definitely uncertain. The long body candle seen here to end the last day of 2025 we can conclude that the handover has been positive. However, the resistance at the median line will prevent the upward charge A move above yesterday’s high could see Nifty scale towards its next set of targets around 26550 (Nifty Spot) beyond the previous high. This level is combining with the median line and this could prove to be a tough challenge for the Nifty.

ICICIPRULI (current market price ₹668.25) - Buy above ₹670, stop ₹650 target ₹715 (Multiday)

Target price: ₹715(2 Months)

360ONE (current market price ₹1190) - Buy above ₹1195, stop ₹1155 target ₹1265 (Multiday)

Adani Energy Solutions (current market price Rs1027.35) - Buy above ₹1030, stop ₹1008 target ₹1065 (Intraday)

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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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