Ahead of Market: 10 things that will decide stock market action on Monday

The Indian market closed lower on Friday, with the Sensex and Nifty edging down as investors pared positions near record highs, with thin year-end trading and continued foreign outflows tempering risk appetite. The pullback capped a subdued session marked by light participation and selective selling across index heavyweights.

The BSE Sensex fell 367 points, or 0.4%, to end at 85,041.45, while the NSE Nifty 50 declined 0.4% to 26,042.3, slipping below the 26,050 mark.

Here’s how analysts read the market pulse:

Domestic equities ended lower today as thin year‑end trading volumes and a cautious mood ahead of upcoming earnings prompted broad-based profit booking, said Vinod Nair, Head of Research at Geojit Investments, adding that the optimism around the Santa Claus rally has diminished amid the absence of fresh catalysts, such as progress on a possible U.S.‑India trade agreement, while continued FII outflows weighed on the Indian rupee.

“Large‑cap stocks underperformed mid- and small-cap counterparts, though selective strength persisted in metals and consumer durable stocks, while IT, autos, and banks witnessed sustained selling pressure,” said Nair.

Also read | Trading Nifty in the last week of 2025: Levels, flows and the Santa rally question

US markets

U.S. stocks hovered near record levels in thin post-Christmas trading on Friday, as a lack of fresh catalysts kept investors from taking strong directional bets. All three major indexes moved in a narrow range after a five-session advance that carried the S&P 500 and the Dow Jones Industrial Average to record closing highs.
The Dow slipped 78.35 points, or 0.16%, to 48,651.67. The S&P 500 edged down 0.58 points, or 0.01%, to 6,931.47, while the Nasdaq Composite added 21.06 points, or 0.09%, to 23,634.36.

European Markets

Public holidays shuttered most European markets, but the exchanges that remained open inched higher as investors positioned for a positive finish to the year.

Tech View

The Nifty continues to remain weak as the index has slipped below the 21 EMA on the hourly chart, indicating a rise in bearish bets after two days of a rangebound phase in recent sessions, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the RSI is in a bearish crossover and trending lower, reflecting weakening momentum.

“During the session, the Nifty found support near the 26,000 level, where the 21 EMA is currently placed. In the near term, the trend may improve and retrace towards 26,200 and higher, provided 26,000 holds decisively. However, a sustained move below 26,000 could trigger further weakness in the market,” said De.

Also read | Market outlook: FII trend, monthly expiry among top factors to track this week

Most active stocks in terms of turnover

Hindustan Copper (Rs 4,486 crore), RVNL (Rs 3,937 crore), IRFC (Rs 2,148 crore), Gujarat Mineral Development Corporation (Rs 1,493 crore), Jupiter Wagons (Rs 1,112 crore), HDFC Bank (Rs 929 crore) and Ircon International (Rs 910 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 51.69 crore), IRFC (Traded shares: 16.39 crore), RVNL (Traded shares: 10.29 crore), Hindustan Copper (Traded shares: 9.63 crore), Ola Electric Mobility (Traded shares: 9.4 crore), MMTC (Traded shares: 7.18 crore) and HFCL (Traded shares: 5.9 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of RVNL, MMTC, IRFC, Hindustan Copper, Gujarat Mineral Development Corporation, RailTel Corporation of India and Karur Vysya Bank were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 112 stocks hit their 52-week highs today, while 120 stocks slipped to their 52-week lows. Among the ones which hit their 52-week highs were Hindustan Copper and Titan.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were HFCL, Reliance Power, Brainbees Solutions, Coforge, Advent Hotels International, Motilal Oswal and CreditAccess Grameen.

Sentiment meter bearish

The market sentiments were bearish. Out of the 4,379 stocks that traded on the BSE on Friday, 2,540 stocks witnessed declines, 1,690 saw advances, while 149 stocks remained unchanged.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times.)