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.

Indian equity markets BSE and NSE remain closed for trading on Thursday, December 25, on account of the Christmas holiday. The country's largest non-agricultural commodity exchange, the Multi Commodity Exchange of India (MCX), and the largest agricultural bourse, the National Commodity & Derivatives Exchange (NCDX), are also shut for both trading sessions. All trading activity including equities, equity derivatives, securities lending and borrowing (SLBs), currency derivatives and commodities trading has been suspended.

Market and Banking Closure Details

This marks the final trading holiday for 2025, with stock markets having observed 14 trading holidays throughout the year. On the banking front, the Reserve Bank of India (RBI)-mandated holiday sees all public and private banks close branches nationwide. Trading operations and banking services will resume on Friday, December 26, across all major exchanges and financial institutions.

Global Market Impact

Major global markets have been on an early Christmas holiday since Wednesday. US markets took an early break and will resume trading on December 26. Markets in Germany were closed for the full day on December 24 and remain shut today. Several countries, including the UK, Germany, France, Australia, and Canada, will observe market holidays on December 26 as well, due to Boxing Day holiday. Some stock exchanges like Hong Kong Stock Exchange and London Stock Exchange Group will remain closed on December 26 for Boxing Day.

Recent Market Performance

Indian benchmark indices ended their three-session gaining streak on Wednesday amid selling pressure in IT and consumer stocks. The BSE Sensex eased 116.14 points or 0.14% to finish at 85,408.70, while the Nifty 50 declined 35.05 points or 0.13% to close at 26,142.10.

Smallcap index outperformed and settled with nearly 0.28% gains, while the midcap index shed 0.60%. The smallcap index has registered a fresh high in each of the last four sessions, according to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities. On the sectoral front, most ended in the red, with Nifty Media emerging as the top sectoral gainer, followed by Nifty Realty. Nifty oil & gas, chemicals, and IT emerged as the top sectoral losers.

Complete 2026 Trading Holiday Calendar

Equity, equity derivatives and currency derivatives markets will remain closed for 15 days in 2026:

Notably, there is no separate mention of holiday for Diwali as it falls on a weekend (Sunday) in 2026.