Trade Setup For New Year's Eve: Nifty Navigates Year-End Blues, Support Seen At 25,700

The Indian equity benchmarks concluded the final monthly expiry of 2025 on a flat note, as a "tug of war" between bulls and bears led to a range-bound session.

Siddhartha Khemka, head of research at Motilal Oswal Financial Services, noted that global holidays and New Year's Eve anticipation kept investors on the sidelines.

The Nifty formed a "bullish pinbar" and a "Doji" candlestick pattern on the daily charts, reflecting indecision after a four-session slide. Osho Krishan, chief manager of technical and derivative research at Angel One, highlighted that the index is currently sandwiched between its 20-day and 50-day DEMAs.

Angel One identifies a significant resistance zone between 26,100 and 26,150. Bajaj Broking Research adds that a decisive breakout above 26,300 is essential to trigger an upside toward 26,500.

The immediate support is positioned at 25,900 to 25,850. Bajaj Broking points to 25,700 to 25,800 as the critical floor that must be held to maintain a neutral-to-positive outlook.

Analysts recommend a "light stance" on directional bets. Siddhartha Khemka expects markets to remain sideways, while Osho Krishan advises focusing on selective thematic players for outperformance.

Looking ahead to the final day of the year, markets will track the US FOMC meeting minutes and domestic pre-quarterly business updates.

In contrast to the headline index, the Bank Nifty showed relative strength, forming a "bullish engulfing" candlestick pattern, signaling strong buying interest at lower levels.

Bajaj Broking expects the index to form a base within the 58,500–60,100 range. The immediate hurdle is placed at 59,300 to 59,500. A breakout above 59,500 could pave the way for a move toward the recent all-time high of 60,100. A strong support is established in the 58,300 to 58,600 zone.

The Nifty 50 declined marginally by 3.25 points or 0.01% to settle at 25,938.85, while the Sensex slipped 20.46 points or 0.02% to close at 84,675.08.

The Nifty 50 ended a volatile monthly expiry virtually unchanged, while the broader market faced slight pressure. The Midcap 100 and Smallcap 100 were down 0.2% and 0.3% respectively. The Metal and Auto sectors provided a cushion against FII selling and year-end lethargy.

The Nifty Metal index was the star of the session, surging 2% to hit a fresh all-time high of 11,029. PSU Banks and Auto stocks also saw buying interest. While IT, Realty, and Consumer Durables faced profit-booking.