Indian equity markets remained closed on Thursday for the Christmas holiday, following a subdued trading session on Wednesday that saw benchmark indices retreat amid thin volumes and foreign selling pressure. Market participants are now focusing on key factors that could influence trading when markets reopen on Friday.

Wednesday's Market Performance

The benchmark indices closed lower on Wednesday in pre-holiday trading, with foreign investors turning net sellers and a lack of fresh triggers keeping risk appetite subdued.

Losses in oil and gas, pharmaceutical, and IT stocks contributed to the benchmark decline as markets headed into the Christmas break. Trading volumes remained notably subdued throughout the session.

Market Activity and Sectoral Performance

Several stocks witnessed significant trading activity during Wednesday's session. JBM Auto led the most active stocks by turnover with ₹2,302 crores, followed by Hindustan Copper at ₹2,030 crores and Jupiter Wagons at ₹1,660 crores.

In volume terms, Vodafone Idea dominated with 60.65 crore shares traded, while Reliance Power and Jupiter Wagons also saw substantial trading activity.

Analyst Outlook and Technical View

Market analysts maintain a cautiously optimistic stance despite the recent consolidation. Vinod Nair from Geojit Investments noted that Indian equities moved largely sideways in the holiday-shortened week, with trading volumes remaining subdued as the year draws to a close. The Reserve Bank of India's recently announced liquidity initiatives, including open market operations and USD/INR buy-sell swaps, are expected to improve systemic liquidity and help stabilize currency volatility.

From a technical perspective, analysts continue to recommend a buy-on-dips approach as long as the Nifty maintains its prevailing uptrend. For fresh momentum, stronger participation from the banking index will be essential, with a decisive breakout above the 59,500 level likely to fuel the next leg of the up move.

Global Market Influence

Global factors are expected to influence Friday's trading session. US markets showed resilience with the S&P 500 and Dow Jones Industrial Average ending at record closing highs on Wednesday. The benchmark S&P 500 is positioned to notch a gain of nearly 18% for the year. Stronger-than-expected US GDP data points to economic resilience, although rising unemployment has tempered some optimism.

Market Sentiment and Stock Performance

Market sentiment remained bearish on Wednesday, with 2,346 stocks witnessing declines compared to 1,841 advances out of 4,332 stocks traded on the BSE. Over 115 stocks hit their 52-week highs, including notable names like Vedanta and Maruti Suzuki, while 102 stocks slipped to their 52-week lows.

Stocks showing strong buying interest included JBM Auto, Hindustan Copper, Manappuram Finance, and Reliance Power. Conversely, selling pressure was evident in stocks like Kajaria Ceramic, Navin Fluorine, and HFCL.

As markets prepare to resume trading on Friday, investors will be closely monitoring global developments, sectoral performance, and trading volumes for directional cues in the final trading sessions of the year.

Indian equity markets experienced another session of consolidation on Wednesday, with the Nifty50 struggling to sustain levels above 26,200 ahead of the Christmas holiday. The session was marked by holiday-thinned volumes and a lack of fresh triggers, as both domestic and global markets prepared for the festive break.

Market Performance Overview

The benchmark indices posted modest declines in Wednesday's session, with both recovering from intraday lows before closing near session lows:

After a flat opening, early buying pushed Nifty to an intraday high of 26,235 within the first hour of trade. However, sentiment weakened after 10:30 am, with selling pressure dragging the index more than 100 points off its highs. The session lacked any sharp selloff and remained largely range-bound, but markets failed to hold opening gains.

Technical Outlook and Analyst Expectations

Despite the current consolidation, market analysts remain optimistic about Nifty's near-term prospects. Rajesh Bhosale, Equity Technical Analyst at Angel One, noted that "Nifty continues to form back-to-back small-bodied candles, indicating a pause in momentum as traders prefer to keep positions light ahead of the holiday."

Analysts provided updated technical levels and outlook for the coming sessions:

Bhosale emphasized that "We continue to expect Nifty to retest all-time highs and potentially create a fresh milestone in the near term," advising traders to stay focused on select themes and stock-specific opportunities that continue to exhibit relative strength.

Bank Nifty Technical Analysis

Bank Nifty is expected to consolidate in the coming weeks with specific technical parameters:

Bajaj Broking Research noted that the "Index formed a bearish candlestick pattern signaling profit booking at higher levels near the last week high of 59,500. Index is seen consolidating in a range amid stock-specific action."

Individual Stock Performance

Among the Nifty 50 constituents, the session saw mixed performance with clear sector-specific trends:

Sectoral Analysis

Sectoral performance showed mixed trends with specific segments leading gains and losses:

IT stocks remained under pressure for the second consecutive session following US modifications to the H-1B visa selection process, with shares of Wipro, Infosys, and HCL Technologies continuing to face headwinds.

Market Schedule and Outlook

Indian equity markets remained closed on Thursday for Christmas, with trading resuming on Friday. Bajaj Broking Research expects the consolidation phase to continue, stating that "Nifty in the last 4 weeks is seen consolidating in the range of 26,300-25,700. We expect the index to extend the same, and only a move above 26,300 will be instrumental in unlocking incremental upside potential towards the 26,500 area."

Despite the current lacklustre movement, the technical setup suggests potential for Nifty to challenge record highs in the near term, with key resistance and support levels clearly defined for traders.