Nifty50 Below 26,050: Sell-off, CE OI Build-up, Key Levels

Sell-off Drags Nifty50 Below 26,050 as Caution Sets In

Team SAHI

1 month ago

Nifty: 26,042.30 ▼ -0.38%
Sensex: 85,041.45 ▼ -0.43%
Bank Nifty: 59,011.35 ▼ -0.29%

Market Today: Caution sets in as Nifty50 breaks below 26,050, What’s next?

The Nifty breached its 20-DEMA intraday, weighed down by selling pressure in IT and Auto stocks. Market breadth remained weak, with the NSE advance-decline ratio at 1:2.

On the weekly chart, Nifty formed a long upper-wick candle, highlighting strong supply at higher levels. Bank Nifty is now approaching its previously discussed demand zone near 58,650–58,800, while Sensex mirrors Nifty’s structure.

Holding above key support levels will be critical. A failure to do so could shift the indices into a time-wise corrective and consolidation phase.

Key Levels to Watch for December 29, 2025

Index	Support	Resistance
Nifty	25,965 & 25,880	26,100 & 26,180
Bank Nifty	58,800 & 58,650	59,100 & 59,275
Sensex	84,750 & 84,500	85,350 & 85,500

Sector & Stock Moves: Where was the action?

IT and Auto stocks led the decline, with Coforge slipping 3.71% ahead of a proposed fundraising meet and the potential acquisition of Encora. Metals and FMCG were the only sectors in green.

Railway stocks stood out on the upside, with RVNL jumping 12.22% as revised passenger fares came into effect.

Titan topped the Nifty gainers, rising 2.12% ahead of the launch of its lab-grown diamond store, while Dilip Buildcon gained 2.39% on multiple order wins exceeding ₹5,000 crore.

NIFTY50: Top Gainers

TITAN ▲ +2.12%
NESTLE ▲ +1.02%
HINDALCO ▲ +0.98%

NIFTY50: Top Losers

ASIANPAINT ▼ -1.40%
SHRIRAMFIN ▼ -1.38%
TECHM ▼ -1.18%

Open Interest Insights

Aggressive call writing at 26,100 (1.22 Cr) and 26,200 (68.17L) highlights a well-defined resistance zone, while limited put additions keep the PCR-OI subdued at 0.7.

What does this mean? It reflects cautious sentiment, where traders are positioning for a corrective move rather than an immediate directional trend.

Stocks on the Move

Stock	% Gain / Loss	What’s happening?
RVNL	+12.22%	Double bottom breakout supported by railway fare revisions and rising Budget optimism
HINDCOPPER	+8.95%	Trading near a 15-month high after base breakout, driven by global copper prices
GMDC	+7.94%	Daily breakout above the 555 zone backed by strong volumes
NBCC	+5.08%	Structural breakout after reclaiming 120, with scope to test 130
IEX	-2.72%	Supply pressure dragging the stock toward the lower end of its range near 132

News You Can Use

Bondada Engineering bags ₹391 crore order from NTPC Green Energy.
Colgate receives ₹268 crore tax demand order for FY 2021–22.
Dilip Buildcon secures ₹3,400 crore EPC project LoA from Adani Road Transport.

Chart of the Day: TITAN (Daily Timeframe)

Spotted: Rounding base

Structure: Price forms a smooth, rounded base, indicating gradual accumulation as selling pressure fades.

Validation: A breakout above the neckline, ideally with volume support, confirms trend continuation.

Trading Insight: A classic continuation setup where sustained accumulation often leads to strong follow-through.