Indian stock market: Both market indices – Sensex and Nifty – closed lower on Friday, December 26, as investors stayed cautious and continued selling in the absence of fresh triggers, amid mixed global signals.

The Sensex declined 367 points, or 0.43%, to finish at 85,041.45, while the Nifty 50 fell 100 points, or 0.38%, to close at 26,042.30. Broader markets also remained under pressure, with the BSE Midcap index easing 0.18% and the Smallcap index slipping 0.34%.

On a weekly basis, however, markets posted modest gains. For the week ended December 26, the Sensex rose 112 points, or 0.13%, ending a two-week losing streak, while the Nifty 50 advanced 0.30%, snapping its three-week decline.

Stock market next week

Nifty

On Friday, the Nifty 50 closed lower at around 26,042, down nearly 0.4%, as profit‑booking and thin year‑end trading pressured markets.

On the Nifty outlook, Sumeet Bagadia, Executive Director at Choice Broking, said, “The daily candle was bearish, breaking below intraday support near 26,050 and reflecting loss of upward momentum. Intraday 1‑hour patterns showed range‑bound swings with lower highs and rejection from resistance, signaling short‑term consolidation. Immediate resistance lies near 26,150–26,200, while key support is placed around 25,850–25,900, with broader demand near 26,850–25,800 likely to attract positional buyers if tested. Overall, the market remains cautious with subdued volumes and mixed sentiment.”

Bank Nifty

Bank Nifty closed lower around 59,011, pulling back from recent highs as banking stocks underwent profit‑booking amid thin holiday week trading, on Friday.

On the Bank Nifty outlook, Bagadia added, “The daily chart exhibited a bearish candle with lower high–low, suggesting short‑term consolidation after recent upside. Intraday 1‑hour patterns showed price holding above the 200‑hour EMA as support, which kept near‑term structure intact and offered cushioning around key demand zones. Immediate resistance lies near 59,300–59,400, while support is placed around the 200‑hour EMA zone 58,990 and broader support 58,700–58,800, acting as potential accumulation territory for positional traders. Overall, bias remains cautious but supported above the 200‑hour EMA.”

Stocks to buy

Sumeet Bagadia has recommended three stocks to buy on Monday, December 29. The three stock picks by Bagadia are – MMTC, Hardwyn India, and Sagility.

1) MMTC: Buy at ₹64.24 | Target Price: ₹70 | Stop Loss: ₹63

2) Hardwyn India: Buy at ₹17.82 | Target Price: ₹19.19 | Stop Loss: ₹17.15

3) Sagility: Buy at ₹52.63 | Target Price: ₹56.5 | Stop Loss: ₹50.5

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.