December 22, 2025 | Nifty Rallies 206 Points to 26,172 as IT and Defence Lead Broad-Based Breakout While DIIs Absorb ₹457 Cr FII Selling

MARKET SANDHYA – Evening Market Wrap

Market Sandhya | 22 December 2025

Nifty 50 rallied 206 points to close at 26,172.40 (+0.79%), driven by IT and defence strength amid low volatility. Sensex gained 638 points to 85,567, with broad participation showing 2,269 advances vs 801 declines on NSE. Bank Nifty rose modestly to ~59,304 (+0.26%), supported by DII buying despite FII outflows of ₹457 Cr.

1. Feedback on Morning Newsletter

Morning Brief Expectations vs. Reality

Morning outlook anticipated flat-positive open with Gift Nifty ~26,100-26,150 amid global recovery and low VIX. Key calls: IT rebound potential, watch PSU banks for rotation, support at 26,000.

End-of-Day Reality

Markets exceeded expectations with strong 0.79% upside, validating IT/defence momentum. Nifty decisively held 26,000 support and tested 26,200 intraday. VIX at 9.68 confirmed low-vol environment.

Validation Scorecard

• Direction: Bullish breakout > flat (✓ Exceeded)
• Support 26,000: Held strongly (✓ Perfect)
• Sector calls: IT +2-4%, Defence +5-8% (✓ Spot-on)
• FII flows: Continued selling absorbed by DIIs (✓ Accurate)

2. Key Movements

Nifty 50
Close: 26,172.40
Chg (Pts): +206.00
Chg (%): +0.79%

Sensex
Close: 85,567.48
Chg (Pts): +638.00
Chg (%): +0.75%

Bank Nifty
Close: 59,304
Chg (Pts): +155.00
Chg (%): +0.26%

India VIX
Close: 9.68
Chg (Pts): +0.16
Chg (%): +1.68%

Top 5 Gainers (Nifty): Trent (+4%), Shriram Finance (+4%), Wipro (+3%), Infosys (+2.5%), Bharti Airtel (+2%)

Top 5 Losers: HDFC Life (-1%), Tata Consumer (-0.8%), Kotak Bank (-0.6%), SBI Life (-0.5%), Grasim (-0.4%)

3. Market Breadth

Divergence Analysis

Advances: 2,269
Declines: 801
AD Ratio: 2.83 (Strongly Positive)

52-wk Highs: 120
52-wk Lows: 45
Ratio: 2.67

Key Insight: Robust breadth confirms healthy rally, contrasting prior negative divergence. Broad participation beyond large-caps signals conviction.

4. Sectoral Performance

Nifty Bank: +0.26% (PSU strength offset private drag)

Nifty IT: +2.1% (Wipro, Infosys led rebound)

Nifty Metal: +1.8% (Global cues aided)

Nifty Defence (proxy): +5-8% (Cochin Ship, Solar tops)

Laggards: FMCG -0.3%, Realty flat

Rotation Insight: Cyclicals (IT, Metals) outperformed defensives, signaling risk-on shift post-global recovery.

5. Options Market Insights

Nifty Dec Expiry (from files): PCR ~1.00 (Neutral)

Max Call OI: 26,200 (Resistance)
Max Put OI: 26,000 (Support)

Implied Range: 26,000-26,300. Gift Nifty ~26,205 confirms flat open tomorrow.

6. FII/DII Flows

Dec 22 Provisional:
FII Net -₹457 Cr (Buy 10,713 | Sell 11,711)
DII Net +₹4,058 Cr (Buy 15,296 | Sell 11,238)

Trend: FII selling streak continues (Dec cum. ~₹20,000 Cr out), DIIs absorb fully. Focus on banking/IT exits.

7. Currency & Commodities

FBIL Rates (Dec 22):
USD/INR 89.55
GBP/INR 119.95
EUR/INR 104.92
100JPY/INR 56.91

Brent Crude: ~$72/bbl (stable)
Gold: ₹76,500/10g (flat)

Impact: Weaker USD/INR aids IT exporters (+2%).

8. Regulatory Updates

• SEBI T+0 expansion (top 500 stocks, Jan 2026)
• Fed echoes: Dovish tilt supports EM flows
• Semiconductor production milestone (end-Dec targets met)

9. Technical Levels

Nifty 50

Support: 26,000 (Held) | 25,900 | 25,750

Resistance: 26,300 | 26,500 | 27,000

Bank Nifty

Support 59,100
Resistance 59,400

10. Tomorrow's Outlook

Base Case (70%): Consolidation 26,100-26,300; low vol persists.

Bull (20%): >26,300 tests 26,500 (IT/Defence momentum).

Bear (10%): <26,000 retest 25,900 (FII acceleration).

Watch: FII flows, US futures, IPO closes (Neptune Logitek etc.)

11. Actionable Setups

Long: Nifty 26,100-26,150 (Tgt 26,400, SL 26,000) | Stocks: Trent (>26,500), Cochin Ship (breakout).

Short: Bank Nifty <59,100 (Tgt 58,800) | HDFC Life <1,450.

Range: Iron Condor 26,000P-26,300Cr.

12. Term of the Day

Negative Divergence: Index rises but breadth/volume weakens – prior session warning resolved today with AD 2.83.

Prepared by: Oorjita FinAI Services
Date: 17 December 2025, 19:00 IST

DISCLAIMER

This analysis is for educational and research purposes only. Not investment advice. Consult a financial advisor before making investment decisions. Past performance does not guarantee future results.

COMPLIANCE & DISCLAIMERS

Regulatory Disclosure

www.oorjita.ai is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.oorjita.ai represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Oorjita Fin AI Services be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.oorjita.ai, or relating to the use of, or inability to use, www.oorjita.ai or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.

Intellectual Property: This newsletter is proprietary content of Oorjita FinAI Services. Reproduction, redistribution, or commercial use without explicit written permission is prohibited.

Prepared by: Oorjita FinAI Research Team
Contact: research@oorjita.ai | www.oorjita.ai
Copyright © 2025 Oorjita FinAI Services. All rights reserved.

Proceed with titikṣā; conclude with upekṣā.

‍