Nifty started the week on a cautious footing, with sustained selling pressure keeping sentiment subdued. But by week’s end, the bulls delivered a spectacular comeback, sending the benchmark roaring like a lion.

 

Biggest Positive Catalyst: Renewed hopes of another 25 bps rate cut by the US Federal Reserve rekindled risk appetite and lifted animal spirits across Dalal Street.

 

Long Story Short: Nifty roars back to life as bulls reclaim control. All bullish eyes now on Nifty’s all-time high at 26326 mark.

 

Nifty (-0.31%, 25966)

Sensex (-0.40%, 84929)

Bank Nifty (-0.54%, 59069)

 

# Before we get into detail, the Good News: Well, what began as Buy-the-Dip action now appears to be evolving into Momentum Buying. If this shift accelerates, it could quickly turn into a Buying Stampede — paving the way for a full-fledged Raging Bull market.

 

With sentiment improving and liquidity likely to stay supportive, Nifty looks poised to break into uncharted territory as we head toward 2026.

 

 

1) Positioning has begun ahead of a January US Fed rate cut. Futures positioning indicates traders now see a high probability of easing when the Fed meets on January 27–28, 2026 —adding fuel to the risk-on sentiment.

 

2) RBI’s recent 25 bps rate cut to 5.25% is broadly positive for equities as it lowers borrowing costs, improves liquidity, and boosts economic sentiment. Historically, rate cuts tend to re-rate growth sectors and revive consumption cycles.

 

# Bottom-line: We believe, Nifty bulls are likely to dominate in the near term — and now with FPI’s  comeback strongly, bulls now have their sights set on the next big psychological milestone: 27,000 on the Nifty?

 

Please note, in the week gone by FIIs bought to the tune of Rs. 3598 Crore.

 

With the macro backdrop turning firmly supportive, the mood on Dalal Street is upbeat —  Long live the bull.

 

Instruments LTP Weekly % Change

Nifty 25966 (-0.31%)

Sensex 84929 (-0.40%)

Bank Nifty 59069 (-0.54%)

Nifty Midcap 16267 (-0.66%)

India VIX 9.52 (-1.91%)

 

Dow Jones 48135 (-0.67%)

Nasdaq 25346 +0.59%

Bovespa 158473 (-1.43%)

 

Crude Oil 56.46 (-1.69%)

Gold 4347 +1.12%

Silver 67.15 +8.33%

USD/INR 89.83 (-0.79%)

 

 

1) Nifty (-0.31%) swung sharply through the session, but the key positive is that it ended on a firm note — and flirted near the psychological important 26,000 mark — holding just below its recent all-time high of 26,325.80.

 

The negative takeaway was that Nifty is still below its 21 DMA (25997). Nifty is however above its 50 DMA (25836) 100 DMA (25339). Nifty’s 200 DMA at 24801 mark.

 

2) Bank Nifty (-0.54%) was well bid towards the close, but the negative takeaway was that Bank Nifty slipped for the2-week in a row. Bank Nifty’s new all-time-high continues to be at 60114.30 mark. 

 

Bank Nifty’s 200-DMA is at 55480 mark.

 

3) Nifty Private Bank (-1.36%) slipped hard while the Nifty PSU Bank (+1.33%) index witnessed sizeable rebound. 

 

4) The broader markets, especially Nifty Mid-cap 50 index (-0.04%) and Nifty Small-cap index (-0.00%) ended on a flat note.

 

Nifty IT (+1.09%)

Nifty FMCG (+0.53%)

Nifty Infra (+0.06%)

 

Nifty Media (-1.10%)

Nifty Energy (-0.69%)

Nifty Auto (-0.59%)

Nifty Pharma (-0.25%)

Nifty Realty (-0.19%) 

Nifty Metal (-0.15%)

 

 

1) WPIL (+10.92%, CMP ₹411)

 

WPIL rallied after its South African arm, PCI Africa Consortium, bagged a 2.5-billion rand (₹1,340 crore) contract for the upgradation and expansion of the Macassar Wastewater Treatment Works for the City of Cape Town, boosting order book visibility and overseas growth prospects.

 

2) Vodafone Idea (+2.75%, CMP ₹11.96)

 

Vodafone Idea jumped higher after its subsidiary raised ₹3,300 crore via non-convertible debentures, easing near-term funding stress. The proceeds will help meet parent-level obligations and support higher capex, while hopes of relief on AGR dues further lifted sentiment. The stock is now up over 46% in 2025 YTD.

 

3) Shriram Finance (+6.33%, CMP ₹902)

 

Shriram Finance zoomed higher after Japan’s MUFG agreed to acquire a 20% stake for ₹39,600 crore, marking one of the largest foreign investments in India’s NBFC space. The deal also gives MUFG the right to nominate two directors on Shriram Finance’s board, boosting long-term growth visibility and governance confidence.

 

4) Reliance Industries (+0.55%, 1565) 

 

Reliance Industries ened on a positive note after its FMCG arm RCPL acquired a majority stake in Udhaiyams Agro Foods, accelerating its push into branded staples.

 

5) Ola Electric (-6.30%, Rs. 34.38) 

Ola Electric shares did received drubbing in the week gone by but aimed to rebound in Friday’s trade after CEO Bhavish Aggarwal completes stake sale to repay Rs 260-crore loan. 

 

CEO's stake sale completely eliminates all promoter pledges, as it releases all 3.93% shares previously pledged for the loan.

 

6) MCX (+1.43%, Rs. 10307) 

 

MCX was in demand on stock split record date announcement.

 

The company fixed January 2, 2026 as the record date for its approved stock split.

 

Under the plan, each ₹10 face-value share will be split into five ₹2 shares, aimed at improving liquidity and boosting retail participation.

 

MCX hit a record high of ₹10,515.60 on December 8 and is up 62% in 2025, sharply outperforming the Sensex’s 7.8% gain. The stock has also rebounded 132% from its March 2025 low. 

 

7) HBL Engineering (+4.15%, Rs. 845) 

 

HBL Engineering was star outperformer on business update that its Loco TCAS order execution. Of the 2,200 TCAS units ordered in 2024, the company delivered and installed 1,659 units (75.4%) by the December 13, 2025 deadline. The balance 541 units now stand cancelled, as per the terms of the purchase order.

 

8) Meesho (+35.72%, ₹ 224) 

Meesho jumped out of the gate and most importantly, crossed ₹1 trillion m-cap

 

The stock has now surged 111% from its IPO price of ₹111 in just seven trading sessions. 

 

SHRIRAM FINANCE  +6.33%

INDIGO +6.03%

TATA CONSUMER  +3.02%

INFOSYS  +2.63%

TECH MAHINDRA  +2.16%

 

# And the losers were:

AXIS BANK (-4.32%)

JSW STEEL (-4.08%)

ETERNAL (-4.03%)

SUN PHARMA (-2.71%)

ONGC  (-2.16%)

 

 

# The Good News: Santa Claus Rally knocking at Dalal Street’s door!

Well, Perma-bulls who waited all December may finally get their festive reward.

 

# Why we are expecting the bullish cheer?

 

1) India VIX cools further to 9.5 levels, signaling calm beneath the rally.

 

2) Q2 FY26 GDP surges 8.2%, powered by strong consumption and sector momentum

 

3) Trade deal optimism builds around a potential US–India agreement.

 

4) A January US Fed rate cut is quite likely.

 

5) FIIs turning buyers as in the week gone by they bought to the tune of Rs. 3598 Crore.

 

Nifty eyes its record peak at 26,326 — and possibly beyond. New all-time highs may soon feel like the new normal.

 

This the season of miracles — keep your bullish stock list ready before Santa delivers momentum gifts.

 

# Long story short: Fasten your seatbelts — Nifty’s all-time-high cap may soon be back in play!

 

 

 

 

 

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