Market Closing View for 22nd Dec by Ponmudi R, CEO, Enrich Money

Indian equity markets extended their rally, led by strong gains in IT, metals, and defence stocks, as investor sentiment improved on multiple supportive cues. A stabilising USD–INR exchange rate, coupled with data showing foreign portfolio investors turning net buyers of domestic equities over the past few sessions, triggered broad-based buying and short covering across derivative segments. Global risk appetite also remained firm, supported by expectations of further monetary policy easing by the US Federal Reserve, which helped sustain the risk-on momentum across global markets. Adding to the positive sentiment, India and New Zealand successfully concluded a free trade agreement, seen as a strategic positive as India seeks to diversify its export base amid the 50% tariffs imposed by the Trump administration. 

Nifty 50 closed the session on a strong note after confirming a breakout above the 26,050–26,100 zone, validating a double-bottom pattern and reinforcing the ongoing daily uptrend. The early gap-up was followed by a healthy continuation from the recent rebound, signalling strength and sustained buying interest rather than distribution. As long as the index holds above the 25,950–26,000 support band, the broader structure remains bullish, with a decisive close above 26,200 opening the path toward 26,300–26,500. 

Bank Nifty continued to outperform the broader market, closing near the day’s highs and reflecting steady demand across the banking space. The index remains comfortably above key short-term moving averages, with immediate support placed at 59,000–58,700. A sustained breakout above the 59,500 resistance zone could unlock a move toward the 60,000-60,500 mark, keeping the near-term bias positive.
Ponmudi R, CEO, Enrich Money- https://enrichmoney.in

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