Nifty Analysis by Angel One
For December 26, 2025
Nifty write up by Osho Krishan, Chief Manager -Technical and Derivative research at Angel One
Broad-based buying helps Nifty reclaim 26150; Santa Rally on the cards
The truncated week began with a gap-up opening, supported by strong cues from the GIFT Nifty. As the session progressed, positive momentum extended further, with Nifty ending at the highest point of the day, gaining 0.79% to close at 26172.
Since the start of December, Nifty had been in a corrective phase, moving in a lower-top lower-bottom structure on the hourly charts and forming a “Falling Channel”. On Friday, prices broke out of this channel on the upside, and today’s session witnessed strong follow-through buying, clearly indicating a resumption of the primary uptrend. A closer look at intraday charts shows that prices successfully defended the 25693 low, formed a higher bottom, and today crossed the previous swing high of 26050, confirming a higher-top higher-bottom structure along with a “Double Bottom formation”. With these technical developments, the primary uptrend appears to be back on track, and we expect the calendar year to end on a strong note, potentially marking fresh milestones. In this scenario, the 26300–26350 zone is seen as the immediate upside target, with further targets likely to unfold as momentum sustains. On the downside, the double bottom breakout coincides with a bullish gap around 26050–26000, which is expected to act as immediate support, and any dip towards this zone is likely to attract buying interest. Momentum indicators also support this view, as the RSI Smoothened has rebounded from its mean level of 50 and generated a fresh buy signal. Traders are therefore advised to avoid contra bets and maintain a positive bias.
On the sectoral front, the final weeks of the calendar year are typically associated with a Santa Rally, where midcap and smallcap stocks tend to outperform. This trend has already begun to play out over the last two sessions, and given the current chart structures, this space is likely to continue delivering relative outperformance in the near term.
Key levels to watch
NIFTY
Support: 26050 – 26000
Resistance: 26300 – 26350
BANKNIFTY
Support : 59000 – 58800
Resistance: 59600 – 59800
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