Morning Action @ 7:00 AM — Tuesday, December 23rd 2025.

# Our Call of the Day: Bullish consolidation shall be the preferred theme.

Year-to-date, Wall Street has delivered an impressive run — the Dow is up 14%, the S&P 500 has surged 17%, the Nasdaq is leading with a stellar 21% gain, and even the small-cap Russell 2000 has joined the party, rising 17%.

Riding this global wave of optimism, India’s benchmark Nifty is also poised to catch momentum and script a strong year-end rally.

With Nifty already up 10.69% YTD, hopes are high that the index will add more sparkle before the curtains fall on 2025 — finishing the year on a distinctly cheerful note.

After all, this is the season of miracles — and all bullish eyes are now firmly set on Nifty 26,500+

# Bottom-line: The benchmark Nifty has a realistic shot at reclaiming the 26,326 peak as bulls look to tighten their grip.

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty ????????: (+19, 26230)
Dow Futures: (+69, 48431)
Nasdaq 100 Futures (+51, 25513)

Nikkei (-11, 50391)
Hang Seng (+74, 25876)

Dow Jones (+228, 48363)
Nasdaq Composite (+121, 23429)
Bovespa (-331, 158142).

# MARKET TRENDS:
Global cues: Positive
FII: (-457.30 crores)
DII: (+4058.20 crores)
Sentiment: Bullish
Market Breadth: Positive
Technicals: Breakout Play
F&O: 25700 - 26700 zone.

INDIA VIX 9.68 (+1.60%)
USD/INR Futures (December) (89.75)
NIFTY PCR (30th December) 1.13
Bank Nifty PCR (30th December) 0.80

# Nifty Outlook: Nifty is on track to reclaim its all-time-high at 26326 mark amidst a dovish Federal Reserve backdrop.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 26172):
SUPPORT: 26100/25903
RESISTANCE: 26326/26900
RANGE: 26100-26350
BIAS: Positive
21 DMA: 26002
50 DMA: 25856
200 DMA: 24822

SENSEX (CMP 85567)
SUPPORT: 85151/84231
RESISTANCE: 86200/87100
RANGE: 85300-86200
BIAS: Positive
21 DMA: 85098
50 DMA: 84496
200 DMA: 81361

BANK NIFTY (CMP 59304)
SUPPORT: 59000/58700
RESISTANCE: 60115/60900
RANGE: 59000-60000
BIAS: Positive
21 DMA: 59275
50 DMA: 58534
200 DMA: 55535

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

# All three key equity indices at Wall Street marched higher for a second consecutive session

# As on Monday's closing bell, the S&P 500 was up 0.6% to 6,878, the Nasdaq Composite gained 0.5% at 23,428, and the Dow Jones Industrial Average was up 0.5% to 48,362.

Amongst frontline stocks, Nvidia (NVDA, +1.5%) and Oracle (ORCL, +3.3%) ended on a positive note.

# The positive takeaway was that the Cboe Volatility Index (VIX) – the market's "fear index" –declined to near its lows for the year around 14.

# Also, the Federal funds rate futures pricing reflects an 80.1% probability the target range for the key interest rate will remain 3.50% to 3.75% after the next Fed meeting.

# Gold prices ($4478 per ounce) surged, scaling a fresh all-time high as expectations of US interest rate cuts strengthened amid easing inflation signals and a softening labor market, while escalating geopolitical tensions added to safe-haven demand. Markets are now pricing in two Fed rate cuts next year, further fueling the rally.

# Silver too zoomed higher near $69.49 per ounce, scaling new record levels, as demand remains robust, supported by growth in the solar, electric vehicle, and data center sectors, underpinning the metal’s long-term fundamentals.

# WTI crude oil futures ($57.95 per barrel) are on the rise as geopolitical risks revived supply concerns. US forces recently boarded the tanker Centuries, carrying roughly 2 million barrels of Venezuelan crude, and pursued another vessel, underscoring Washington’s efforts to choke off revenue to Nicolás Maduro’s government.

# STOCK MARKET NEWS:

# Market Recap:
In Monday’s trade, Nifty sprinted higher as bulls carried forward Friday’s bullish baton, setting the tone for a spirited session.

Investors clanged to hopes of a Santa Claus rally.

Benchmark Indices as on Tuesday’s close:
NIFTY (+206, 26172)
SENSEX (+638, 85567)
BANK NIFTY (+235, 59304)

# Our Call of the Day: Bullish consolidation shall be the preferred theme.

For Dalal Street, the message is clear: liquidity is flowing, sentiment is firming, and frontline stocks stand to benefit first — especially metals, energy, financials, and capital goods.

# The 2-key positive catalyst:

1) Sentiments are buoyed on hopes of a Santa Claus rally
2) Wall Street rises as Christmas and Year-End Rally Rolls On

# What Technicals Tells Us On Nifty:
Technically, Nifty’s near-term setup has improved significantly with all bullish eyes on Nifty’s all-time high of 26,326.

For the day, bulls will aim to dictate momentum, the crucial support at 25,907 remains the line in the sand — a breakdown below this level could accelerate downside pressure.

# Long Story Short: For Dalal Street, the message is clear: liquidity is flowing, sentiment is firming, and frontline stocks stand to benefit first — especially metals, energy, financials, and capital goods.

# Bottom-line: Nifty appears well-placed to reclaim its all-time high of 26,326, riding on a distinctly dovish Federal Reserve backdrop.

The encouraging news is that another 25 bps rate cut by the Fed could be on the table as early as January, reinforcing the global liquidity narrative.

Historically, lower US policy rates act as fuel for global risk appetite. For emerging markets like India, this typically translates into stronger foreign inflows, improved rupee stability, and abundant liquidity, all of which are supportive for equities.

Adding to the optimism, a healthier US growth outlook tends to boost demand for Indian exports, providing a meaningful tailwind to IT and other export-oriented frontline stocks.

In essence, when US rates head lower, global capital naturally rotates toward higher-growth, higher-yielding markets — and India stands out as a prime beneficiary.

The stage, therefore, looks set for Nifty and its frontline stocks to ride the next leg of the risk-on rally.

Yipeee!

# STOCKS IN SPOTLIGHT:

1) Tata Motors (+4.36%, ₹ 411.55)
Tata Motors jumped after a global brokerage-initiated coverage on its commercial vehicle business with a Buy rating and a target price of Rs 481.

2) GE Vernova T&D India (+4.55%, ₹ 3,060)

GE Vernova T&D jumped out of the gate, after securing a multi-year HVDC project from Adani Energy Solutions.

3) Varun Beverages (+3.64%, ₹ 486.50)
Varun Beverages rose after the company shared details of its proposed acquisition of South Africa based Twizza Proprietary. The company said the acquisition will be executed through its wholly owned subsidiary in South Africa.

4) Bondada Engineering (+2.88%, ₹367.70)

Bondada Engineering surged after the company announced that it has secured a large and strategically significant EPC order worth Rs 945.10 crore from NLC India Renewables on behalf of NLC India.

(Source: liveMint, Moneycontrol, capital market, business Standard)

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

Nifty (26172): Buy at CMP. Stop 25813. Targets 26251/26326. Aggressive targets at 26500-26750 zone.

Bank Nifty (59304): Buy at CMP. Stop at 58123. Targets 59600/60115. Aggressive targets at 60500-60900 zone.

# Our chart of the day is bullish on UPL, VARUN BEVERAGES and MANAPPURAM on any early excessive intraday declines with an interweek/Intermonth perspective.

# The 1 Stock to Buy Right Now: Buy VARUN BEVERAGES (VBL) (486): Buy at CMP. Stop at 449. Targets 503/519. Aggressive targets at 541. (Interweek Strategy). Rationale: Signalling a massive rebound on the upside. Enjoyed strong session in yesterday's trade, up 3.46%. Key interweek support 473. Major hurdles only at 503 mark. 200-DMA at 485.

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