Indian equity markets head into the December 23 trading session with a strong bullish undertone, following a decisive breakout witnessed in the previous session. Benchmark indices not only extended gains but also cleared key resistance levels that had capped upside momentum over the past few sessions.

According to market analyst Dhwani Patel, the current market structure reflects trend continuation rather than a temporary bounce, supported by improving momentum indicators, aggressive Put writing in the derivatives segment, and sustained price action above all major moving averages.

While volatility remains low, price behaviour suggests that bulls continue to dominate the near-term trend. Traders, however, are advised to remain disciplined and trade based on levels rather than emotions, as markets are now approaching higher resistance zones.

Nifty 50: Technical Outlook

Current Level: 26,172

The Nifty 50 formed a long bullish candle on the daily chart, marking another session of higher high–higher low formation. This confirms the continuation of the prevailing uptrend and highlights a decisive breakout above the crucial 26,000 psychological level.

Key Technical Developments

• Breakout from a triangle pattern formed around 26,000
• Sustained trading above the resistance trendline
• Price trading well above all key moving averages
• Short-term moving averages trending upward
• Index holding above the midline of Bollinger Bands

This combination reflects a structurally strong setup where buyers remain firmly in control.

Momentum Indicators

• RSI: Turned bullish and rose to 58.56, indicating strengthening momentum
• MACD: Gradually moving upward toward the reference line
• MACD Histogram: Negative momentum continues to fade

As per Dhwani Patel, these indicators collectively confirm that bullish momentum is not only intact but also expanding gradually.

Key Levels for Nifty 50

Resistance (Pivot-Based):

• 26,184
• 26,216
• 26,267

Support (Pivot-Based):

• 26,083
• 26,052
• 26,001

As long as the index sustains above 26,083–26,001, the bullish structure remains intact. Intraday dips toward support zones may attract fresh buying interest.

Bank Nifty: Technical Outlook

Current Level: 59,304

Bank Nifty extended its upward momentum and formed a bullish candle with small upper and lower shadows, signalling continuation of the uptrend despite intraday volatility.

The index also registered a breakout above a down-sloping resistance trendline, which shifts the short-term structure decisively in favour of bulls.

Key Technical Observations

• Sustained move above the midline of Bollinger Bands (59,300)
• Price trading above short-term moving averages
• Rising support trendline remains intact
• Breakout from a corrective structure

Momentum Indicators

• RSI: At 56.08, nearing a bullish crossover
• Stochastic RSI: Turned positive
• MACD Histogram: Weakness continues to reduce
• MACD: Still below reference line but improving

According to Dhwani Patel, this setup indicates improving momentum with a positive bias, though Bank Nifty may witness short-term consolidation near resistance levels.

Key Levels for Bank Nifty

Resistance (Pivot-Based):

• 59,359
• 59,410
• 59,493

Support (Pivot-Based):

• 59,195
• 59,144
• 59,061

Fibonacci Resistance:

• 59,449
• 60,859

Fibonacci Support:

• 58,983
• 58,635

Holding above 59,061–59,195 keeps the broader bullish trend intact.

Nifty Options Data: Weekly Expiry Analysis

Call Options Activity

The 26,200 strike holds the highest Call open interest at 1.05 crore contracts, acting as a near-term resistance zone. This is followed by:

• 26,300 strike – 1 crore contracts
• 26,150 strike – 84.1 lakh contracts

Fresh Call Writing Seen At:

• 26,150 strike: +45.77 lakh contracts
• 26,300 strike: +33.24 lakh contracts
• 26,400 strike: +21.84 lakh contracts

Call Unwinding Observed At:

• 26,000 strike: −89.44 lakh contracts
• 25,950 strike: −41.22 lakh contracts
• 26,050 strike: −28.48 lakh contracts

Heavy unwinding at lower strikes clearly indicates short covering, which is supportive of further upside.

Nifty Put Options Data

Put Options Activity

The 26,100 strike holds the maximum Put open interest at 1.69 crore contracts, establishing a strong support base. Other key levels include:

• 26,000 strike – 1.6 crore contracts
• 25,900 strike – 1.54 crore contracts

Aggressive Put Writing Seen At:

• 26,100 strike: +1.5 crore contracts
• 26,150 strike: +98.12 lakh contracts
• 26,050 strike: +67.62 lakh contracts

Put Unwinding Seen At:

• 25,650 strike: −22.79 lakh contracts
• 25,450 strike: −7.2 lakh contracts
• 25,550 strike: −7.03 lakh contracts

As per Dhwani Patel, such aggressive Put writing near higher strikes reflects strong bullish conviction among market participants.

Bank Nifty Options Data: Monthly Expiry

Call Options Activity

The 59,500 strike holds the highest Call open interest at 19 lakh contracts, making it a key resistance level. This is followed by:

• 60,000 strike – 17.62 lakh contracts
• 59,000 strike – 8.62 lakh contracts

Call Writing Observed At:

• 59,400 strike: +1.11 lakh contracts
• 59,500 strike: +98,140 contracts
• 60,100 strike: +44,590 contracts

Call Unwinding Seen At:

• 59,000 strike: −2.59 lakh contracts
• 59,100 strike: −1.46 lakh contracts
• 59,200 strike: −81,795 contracts

Bank Nifty Put Options Data

Put Options Activity

The 59,000 strike holds the maximum Put open interest at 14.07 lakh contracts, followed by:

• 59,500 strike – 12.97 lakh contracts
• 58,500 strike – 10.41 lakh contracts

Put Writing Seen At:

• 59,300 strike: +1.56 lakh contracts
• 57,500 strike: +1.14 lakh contracts
• 59,400 strike: +1.04 lakh contracts

Put Unwinding Observed At:

• 57,700 strike: −37,415 contracts
• 58,300 strike: −22,225 contracts
• 58,400 strike: −17,150 contracts

This positioning confirms strong downside protection for Bank Nifty.

Put-Call Ratio (PCR)

The Nifty Put-Call Ratio surged to 1.42, rising sharply from 1.13 in the previous session.

What a High PCR Indicates

• Dominance of Put selling
• Strong bullish sentiment
• Expectation that markets will remain above key support levels

However, Dhwani Patel cautions that extremely high PCR readings may sometimes lead to short-term consolidation.

India VIX

India VIX rose 1.6% to 9.67, snapping a four-day declining streak. Despite the rise, volatility remains in the lower comfort zone, which continues to support bullish price action.

Low volatility environments often favour trend continuation but can also result in sudden sharp moves, making risk management critical.

Trading Strategy for December 23, 2025 (Dhwani Patel’s View)

According to Dhwani Patel, traders should follow a structured approach:

• Focus on buy-on-dips, not breakout chasing
• Prefer stocks and indices holding above key supports
• Avoid aggressive leverage in low-volatility markets
• Maintain strict stop-loss discipline
• Be cautious near resistance zones

Risk management remains more important than prediction accuracy.

Conclusion

The trade setup for December 23, 2025, clearly reflects a bullish continuation phase for both Nifty and Bank Nifty. Strong breakouts above critical resistance levels, aggressive Put writing, rising momentum indicators, and a sharply higher PCR collectively reinforce the positive outlook.

As highlighted by Dhwani Patel, sustaining above key support levels will be crucial for the rally to extend further. Traders should remain disciplined, respect levels, and avoid emotional decision-making as markets trade near higher zones.

Disclosure & Disclaimer

Dhwani Patel (SEBI Registration No: INH200008608) is a SEBI-registered Research Analyst.
All views are for educational purposes only. This is not investment advice. Please consult your financial advisor before trading.