Morning Action @ 7:00 AM — Tuesday, December 16th 2025.

# An up-and-down session is quite likely, though the benchmark Nifty may stabilise at lower levels.

# Investor sentiment remains supported by expectations of further US Fed rate cuts next year. Fresh signs of cooling in the US labour market reinforce the view that the Federal Reserve could deliver two rate cuts in 2026.

Against this supportive backdrop, Nifty bulls may shrug off global weakness, allowing optimism to resurface. The street suspect, there is a fair chance Nifty closes above the 26,000 mark once again, with eyes gradually shifting toward its all-time high of 26,326.

Long story short: Bulls are likely to regroup on dips — buy-the-dips remains the mantra for the day.

# 7:00 AM GLOBAL UPDATE:

GIFT Nifty: (-13, 26078)
Dow Futures: (+111, 48528)
Nasdaq 100 Futures (-33, 25034)

Nikkei (-398, 49773)
Hang Seng (-81, 25548)

Dow Jones (-41, 48417)
Nasdaq Composite (-138, 23057)
Bovespa (+1716, 162482).

# MARKET TRENDS:
Global cues: Negative
FII: (-1468.30 crores)
DII: (+1792.30 crores)
Sentiment: Bullish
Market Breadth: Positive
Technicals: Rebound Play
F&O: 25500 - 26500 zone.

INDIA VIX 10.25 (+1.41%)
USD/INR Futures (December) (90.85)
NIFTY PCR (30th December) 1.08
Bank Nifty PCR (30th December) 0.94

# Nifty Outlook: Expect an up-and-down session with upside capped on sharp rallies, while the downside remains well protected. The bias stays positive for the day, and the gyan mantra remains: buy on corrective dips.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 26027):
SUPPORT: 25901/25693
RESISTANCE: 26203/26326
RANGE: 25950-26200
BIAS: Positive
21 DMA: 26031
50 DMA: 25770
200 DMA: 24736

SENSEX (CMP 85213)
SUPPORT: 84840/84150
RESISTANCE: 85797/86200
RANGE: 84900-85900
BIAS: Positive
21 DMA: 85168
50 DMA: 84189
200 DMA: 81100

BANK NIFTY (CMP 59462)
SUPPORT: 58900/58100
RESISTANCE: 60200/60900
RANGE: 59000-60000
BIAS: Positive
21 DMA: 59277
50 DMA: 58232
200 DMA: 55276

# STOCK MARKET NEWS:

# Before we start, a recap of Monday’s trading:
Nifty started Monday’s session on a cautious and nervous note, but the key positive was its steady recovery through the day, reclaiming ground near the dotted line and ending with only marginal losses on a relatively stable footing.

Blame Nifty’s cautiousness to Wall Street which nosedived in Friday’s trade as the sharp fall reflected:

1) Overbought technical conditions.
2) Investors rush out of AI trade

# Our Call of the Day: The stage is set for decent gains for benchmark Nifty but bullish traders need to note that multiple headwinds are still in play, and could cap any excessive intraday upside:

# THE 2-KEY SENTIMENT DAMPENER:

1) Rupee weakness persists, hovering near ₹90.78/USD, adding macro stress.
2) FII outflows remain elevated — FY26-to-date net selling stands at ₹153543 crore.

# The 2-Positive Catalysts in the Backdrop:
The rate cuts by the RBI and the US Federal Reserve, coupled with an improving economic outlook, set a bullish backdrop for 2026.

# The Biggest debate: AI Boom or AI Bust?
The street’s concern is that even if AI works, and even if it gets adopted very fast, it might not make profit.

# What Technicals Tells Us On Nifty:
Technically, Nifty’s near-term setup remains fragile as long as it hovers below the all-time high of 26,326, with sellers actively capping every bounce.

While bears continue to dictate momentum, the crucial support at 25,693 remains the line in the sand — a breakdown below this level could accelerate downside pressure.

# Bottom-line: An up-and-down session looks likely as overbought technicals, fading bullish momentum, persistent FII selling, a weakening INR, and the absence of major triggers collectively tilt the scales in favor of the bears.

Long Story Short: Investors now await a series of key US economic releases this week, particularly the jobs report due on Tuesday and inflation data on Thursday, for further clues on the Fed's rate path.

Caution remains the watchword!

# STOCKS IN SPOTLIGHT:

1) Shriram Finance (+0.45%, ₹ 852)

Media reports suggest Mitsubishi UFJ Financial Group (MUFG) is in advanced talks to acquire a minority stake in the company, marking another foreign bank’s push to expand its India presence.
Reports suggests that, MUFG may invest over ¥500 billion (≈$3.2 billion) for a stake of around 20%.

Discussions are said to be at an advanced stage, with a potential agreement possible as early as this week, though the final valuation and stake size remain subject to change.

2) Wheels India (+5.69%, ₹ 890)

Wheels India surged after signing a technical assistance agreement with Japan-based Topy Industries for the design, development and manufacture of aluminium alloy wheels.

3) SEPC (+12.17%, ₹ 10.23)

SEPC jumped higher after securing a ₹3,300 crore domestic contract from South Eastern Coalfields (SECL) through the JARPL–AT Consortium.

4) Ashoka Buildcon (+2.27%, ₹169.20)

Ashoka Buildcon gained after receiving an EPC order from BMC to construct a flyover linking J.J. Bridge and Sitaram Selam Bridge in Mumbai.

(source: Capitalmarket, Business Standard, Moneycontrol)

# Now, here is the preferred trade on Nifty and Bank Nifty:

Nifty (26027): Buy at CMP. Stop 25797. Targets 26121/26203. Aggressive targets at 26325-26500 zone.

Bank Nifty (59462): Buy at CMP. Stop at 57991. Targets 59750/60200. Aggressive targets at 60700-60900 zone.

# Our chart of the day is bullish on UPL, CHOLAMANDALAM FINANCE and PRESTIGE ESTATE on any early excessive intraday weakness with an interweek/Intermonth perspective.

# The 1 Stock to Buy Right Now: Buy GLENMARK (1985): Buy at CMP. Stop at 1863. Targets 2009/2039. Aggressive targets at 2101. (Interweek Strategy). Rationale: Momentum Play. Signalling a massive rebound on the upside. Key interweek support 1871. Major hurdles only at 2039 mark. Positive divergences witnessed on the daily charts. 200-DMA at 1758.

Disclaimer/ Disclosure: The investments & trading ideas recomended in the market analysis, research reports, etc. may not be suitable for all investors. This article or data points does not construe investment advice as stock market investments are subject to market risks so please refer to your financial consultant advice before Investing or trading. All information is a point of view, and is for educational, Learning and informational use only. The author or the group admin accepts no liability for any interpretation of articles or comments on this platform being used for actual investments. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investors must make their own investment decisions based on their specific investment objectives, goals and financial position only by after consulting with registered market intermediaries.