NIFTY Set to Sign Off 2025 Quietly—Could 2026 Bring a Rally?As we enter the last week of 2025 and approach the first week of 2026, Nifty is doing something familiar—consolidating in a tight range.
Everything looks calm at first glance: volatility is very low (India VIX at 9.15), trading volumes are light, and price changes are small. But history shows that such calm often comes before a big move.
◉ What it means actually?
● Nifty near lifetime highs, but breadth remains weak
● Low volatility → calm market, but risk of sudden moves
● Traders aren’t chasing the market, they’re waiting for a trigger rather than pushing prices higher.
◉ Technical View
● From a technical standpoint, Nifty continues to trade within a rising wedge pattern, which carries bearish implications in the short term.
● Looking at the broader structure, a cup-and-handle pattern is forming, typically pointing to a potential upside move once the neckline is decisively breached.
◉ Important Levels to Watch
● Immediate Resistance: 26,100 - 26,200
● Immediate Support: 25,900 - 26,000
Strong breakout or breakdown from here will decide the next big leg.
◉ Looking Ahead
As 2026 begins, markets will closely track:
● FOMC minutes, which could influence global rate expectations.
● Rupee movement and FII flows, key drivers of short-term sentiment.
◉ Strategy Insight
Until fresh catalysts emerge, markets may stay range-bound as they digest year-end positioning. With volatility compressed, stock-specific strategies and relative-strength setups may offer better opportunities than broad index trades.
