Market Overview

Indian equity markets head into the December 24 trading session after a phase of strong upside momentum followed by mild consolidation. The previous session reflected indecision rather than weakness, suggesting that market participants are pausing to reassess positions after the recent rally.

According to market analyst Dhwani Patel, the broader market structure continues to remain positive, even though short-term consolidation has emerged. Price action across benchmark indices indicates that bulls are still in control, but fresh triggers may be required for the next leg of the rally.

Low volatility, improving momentum indicators, and supportive options data collectively indicate that the underlying trend remains constructive, though traders should be prepared for range-bound movement in the near term.

Nifty 50: Technical Outlook

Current Level: 26,177

The Nifty 50 formed a small-bodied bearish candle with upper and lower shadows on the daily timeframe. Such a candle structure typically signals indecision, especially after a sharp move higher. Importantly, this does not indicate trend reversal but rather a pause within an ongoing uptrend.

Key Technical Observations

• The higher high–higher low structure remains intact
• Short-term moving averages continue to trend upward
• The 10-day EMA has crossed above the 20-day EMA, confirming short-term strength
• Price continues to trade above medium- and long-term averages
• Consolidation is occurring near higher zones, not near breakdown levels

This behaviour reflects healthy consolidation rather than distribution.

Momentum Indicators

• RSI: Rose to 58.70 and remains comfortably above the reference line
• Stochastic RSI: Continues to hold a strong bullish crossover
• MACD: Turned positive, with the histogram now above the zero line

As per Dhwani Patel, these indicators confirm that the positive underlying momentum is still intact, even though the index may spend some time consolidating.

Key Levels for Nifty 50

Resistance (Pivot-Based):

• 26,220
• 26,247
• 26,291

Support (Pivot-Based):

• 26,133
• 26,106
• 26,062

A sustained hold above 26,062–26,106 keeps the bullish structure intact. Any move above 26,247 could invite fresh momentum buying.

Bank Nifty: Technical Outlook

Current Level: 59,300

Bank Nifty also reflected indecision, forming a bearish candle with upper and lower shadows on the daily chart. Despite this, the broader structure remains positive, with the index continuing to print higher top–higher bottom formations.

Key Technical Observations

• Price continues to sustain above all key moving averages
• The index closed marginally below the midline of the Bollinger Bands
• Rising trendline support remains intact
• Consolidation is occurring after a recent breakout

This behaviour suggests that the banking index is digesting recent gains rather than reversing.

Momentum Indicators

• RSI: Slipped marginally to 55.99, but remains above the reference line
• Stochastic RSI: Maintains a bullish crossover
• MACD Histogram: Weakness continues to fade
• MACD: Still below the reference line but improving gradually

According to Dhwani Patel, Bank Nifty is displaying a cautious yet positive bias, indicating that dips may continue to attract buying interest.

Key Levels for Bank Nifty

Resistance (Pivot-Based):

• 59,377
• 59,421
• 59,492

Support (Pivot-Based):

• 59,235
• 59,192
• 59,121

Fibonacci Resistance:

• 59,449
• 60,859

Fibonacci Support:

• 58,983
• 58,635

Holding above 59,121–59,192 keeps the bullish bias intact.

Nifty Options Data: Monthly Expiry Analysis

Call Options Activity

The 27,000 strike holds the maximum Call open interest at 1.1 crore contracts, making it a major resistance zone for the index in the near term. Other notable strikes include:

• 26,200 strike – 75.58 lakh contracts
• 26,500 strike – 72.27 lakh contracts

Fresh Call Writing Observed At:

• 26,200 strike: +28.86 lakh contracts
• 26,600 strike: +24.12 lakh contracts
• 26,700 strike: +23.41 lakh contracts

Call Unwinding Seen At:

• 26,000 strike: −4.36 lakh contracts
• 25,900 strike: −2.62 lakh contracts
• 25,800 strike: −63,150 contracts

This data indicates that traders are booking profits on lower strikes and positioning cautiously near higher resistance levels.

Nifty Put Options Data

Put Options Activity

On the Put side, the 26,000 strike holds the maximum Put open interest at 1.19 crore contracts, acting as a strong support base. This is followed by:

• 26,200 strike – 65.87 lakh contracts
• 25,800 strike – 57.56 lakh contracts

Put Writing Observed At:

• 26,200 strike: +28.24 lakh contracts
• 25,700 strike: +24.94 lakh contracts
• 25,800 strike: +24.75 lakh contracts

Put Unwinding Seen At:

• 26,500 strike: −71,775 contracts
• 25,650 strike: −68,775 contracts
• 27,000 strike: −58,300 contracts

As highlighted by Dhwani Patel, sustained Put writing near higher strikes indicates that market participants continue to defend downside levels.

Bank Nifty Options Data: Monthly Expiry

Call Options Activity

The 59,500 strike holds the maximum Call open interest at 20.15 lakh contracts, acting as a key resistance zone. Other significant levels include:

• 60,000 strike – 18.75 lakh contracts
• 61,000 strike – 8.9 lakh contracts

Fresh Call Writing Seen At:

• 60,700 strike: +1.33 lakh contracts
• 60,800 strike: +1.28 lakh contracts
• 59,300 strike: +1.28 lakh contracts

Call Unwinding Observed At:

• 59,000 strike: −46,865 contracts
• 58,800 strike: −22,890 contracts
• 59,100 strike: −19,320 contracts

Bank Nifty Put Options Data

Put Options Activity

The 59,000 strike continues to hold the maximum Put open interest at 13.96 lakh contracts, followed by:

• 59,500 strike – 12.89 lakh contracts
• 58,500 strike – 10.68 lakh contracts

Put Writing Observed At:

• 59,300 strike: +1.04 lakh contracts
• 59,400 strike: +84,175 contracts
• 58,000 strike: +76,545 contracts

Put Unwinding Seen At:

• 57,500 strike: −1.19 lakh contracts
• 59,100 strike: −31,850 contracts
• 59,000 strike: −11,410 contracts

This positioning suggests strong downside cushioning for Bank Nifty.

Put-Call Ratio (PCR)

The Nifty Put-Call Ratio declined to 1.14, from 1.42 in the previous session.

How to Interpret This Move

• PCR above 1 continues to reflect bullish sentiment
• The decline suggests some profit booking after aggressive Put writing
• Sentiment remains positive but less euphoric

According to Dhwani Patel, a cooling-off in PCR after a sharp rise is often healthy and supports market stability.

India VIX

India VIX fell 3.07% to a fresh record closing low of 9.38, remaining well below all key moving averages. This reflects a strong comfort zone for bulls.

Low volatility environments:

• Support trend continuation
• Encourage positional buying
• Increase the probability of sudden sharp moves due to complacency

Traders should therefore maintain disciplined risk management.

Trading Strategy for December 24, 2025 (Dhwani Patel’s View)

As per Dhwani Patel, traders should consider the following approach:

• Focus on buying on declines near support zones
• Avoid chasing price at higher resistance levels
• Prefer stocks showing relative strength over indices
• Keep leverage moderate due to low volatility
• Maintain strict stop-loss discipline

Markets in consolidation phases often reward patience more than aggression.

Conclusion

The trade setup for December 24, 2025, reflects a phase of healthy consolidation within an ongoing uptrend. Both Nifty and Bank Nifty continue to hold above key supports, momentum indicators remain positive, and options data suggests strong downside protection.

As emphasised by Dhwani Patel, the broader trend remains constructive, and traders should treat near-term dips as potential opportunities rather than signs of weakness—while remaining cautious near resistance levels.