Nifty Below 26K: Monthly Expiry Setup Turns Cautious

Nifty Slips Below 26K Ahead of Monthly Expiry as Caution Builds

Team SAHI

0 month ago

Nifty: 25,942.10 ▼ -0.38%

Sensex: 84,695.54 ▼ -0.43%

Bank Nifty: 58,932.35 ▼ -0.13%

Market Today: A cautious tone, What’s next?

Markets ended on a cautious note ahead of the December series expiry, with Nifty slipping below the 26K mark and India VIX rising by 6.25%.

Nifty closed below its 20-DEMA, shifting focus to the immediate support zone of 25,880–25,800. Holding above this band will be important; a breakdown could lead to a consolidation phase.

Sensex mirrored a similar structure, drifting closer to its near-term support, while Bank Nifty relatively outperformed and ended almost flat.

Key Levels to Watch for December 30, 2025

Index	Support	Resistance
Nifty	25,880 & 25,800	26,050 & 26,125
Bank Nifty	58,800 & 58,650	59,150 & 59,400
Sensex	84,450 & 84,000	85,050 & 85,400

Sector & Stock Moves: Where was the action?

Metals led the decline, failing to hold early gains as prices corrected from intraday highs. IT, Realty, Energy and Auto stocks also added to the pressure.

Capital market and EMS names remained weak, with Angel One, Dixon Technologies and Amber Enterprises closing lower. Railway stocks saw profit booking after a sharp recent rally.

Gold financiers such as Muthoot and Manappuram Finance trimmed gains as precious metals cooled. On the positive side, FMCG and PSU banks provided support.

HFCL, NCC and Titagarh Rail moved higher ahead of their F&O exclusion, while OMCs gained as crude prices eased.

NIFTY50: Top Gainers

TATASTEEL ▲ +1.88%
TATACONSUM ▲ +1.66%
ASIANPAINT ▲ +1.05%

NIFTY50: Top Losers

ADANIPORTS ▼ -2.20%
POWERGRID ▼ -1.83%
HCLTECH ▼ -1.81%

Open Interest Insights

Heavy call writing at 26,000 (1.19 Cr) and 26,100 (66.7L) is creating a strong overhead resistance.

Modest put additions at 25,900 (41.07L) keep the PCR-OI subdued at 0.6.

What does this mean? A cautious-to-mildly bearish bias, where the index may struggle to sustain upside moves unless short covering or fresh buying emerges.

Stocks on the Move

Stock	% Gain / Loss	What’s happening?
TATASTEEL	+1.88%	Pennant breakout near 171.50 with strong volumes; follow-through will be key
TATACONSUM	+1.66%	Scaled a fresh 52-week high, confirming breakout above 1,188 triangle resistance
BPCL	+1.53%	Strengthening for a possible move above 372, supported by fresh long OI additions
GRASIM	+0.88%	Consolidating and gradually moving toward the upper range near 2,900
IRFC	-5.45%	Undergoing a pullback after a sharp rally in the previous session

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Chart of the Day: TATASTEEL (Daily Timeframe)

Spotted: Pennant

Structure: Price tightens into a short consolidation after a sharp move, forming lower highs and higher lows as momentum pauses.

Validation: A breakout above the upper pennant boundary with volume confirms continuation.

Trading Insight: A brief pause within a strong trend that often resolves with a fast follow-through in the direction of the prior move.