Domestic markets are likely to open flat on Tuesday amid lack of global cues and domestic triggers. With the return of FPIs as buyers, markets are likely to sustain the momentum, said analysts. Global markets will send little signal due to holidays on account of Christmas, they said.
Ponmudi R, CEO of Enrich Money, said Indian equity markets are likely to open on a flat to mildly positive note, supported by stable global cues. GIFT Nifty signals a calm start around the 26,200–26,250 zone, with trading volumes expected to remain subdued amid the holiday-shortened week. “Consequently, market participation is likely to be selective rather than broad-based, as investors prefer to conserve risk and focus on high-conviction opportunities,” he said.
On the sectoral front, financials, IT, and metals are expected to provide directional leadership, underpinned by improving global risk sentiment, selective foreign institutional investor participation, and expectations of a supportive policy backdrop heading into 2026. That said, elevated valuations and thin holiday liquidity warrant a disciplined approach, favouring buy-on-dips strategies over aggressive leverage, he further said.
Signal from derivative trading indicates positive zone.
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said derivatives data further supports the current structure while also hinting at some near-term caution. The highest concentration of call writing has been observed at the 26,200 strike, where open interest stands at 1.22 crore contracts, marking it as a significant resistance area. On the other hand, heavy put writing at the 26,100 strike, with open interest of 1.92 crore contracts, has created a strong support base just below current levels. “The put–call ratio has climbed to 1.57, moving closer to overbought territory. While this reflects strong bullish positioning, it also suggests that some degree of minor profit booking or short-term consolidation cannot be ruled out in the upcoming session,” he added.
Volatility conditions continue to remain favourable for the bulls, with India VIX settling at 9.68, well below its equilibrium range. As long as volatility remains under control and stays below the 12 mark, the broader market is likely to witness stable price action with limited sharp swings, he said.
Derivatives data indicates aggressive call writing at the 26,200 strike, while strong put open interest at 26,100 reinforces the presence of a well-defined near-term trading range, said Amruta Shinde, Technical & Derivative Analyst, Choice Broking.
Published on December 23, 2025
