Indian equity benchmarks wrapped up Calendar Year 2025 on a positive note, with both Nifty 50 and Nifty Bank delivering strong annual returns. Despite intermittent volatility during the year, broader market trends remained constructive, supported by improving momentum and stable macro conditions.
Nifty Ends CY2025 with 10.51% Annual Gain
The Nifty 50 closed the final trading session of 2025 at 26,129.60, gaining 0.74% on the day and marking an annual rise of 10.51%. The index finished the year firmly in positive territory, reinforcing its longer-term upward trajectory.
Technical Outlook for Nifty
On the daily chart, Nifty formed a morning star candlestick pattern following the recent decline, signalling a recovery from lower levels. The open and low being placed near the same zone highlights controlled intraday strength and buyer participation.
The index has successfully reclaimed its 10-day and 20-day exponential moving averages (EMAs), pointing to strengthening short-term momentum. Importantly, the broader structure of higher highs remains intact, keeping the medium-term trend positive.
Momentum indicators support the bullish bias:
- RSI has moved higher and is placed near 56, indicating improving strength
- MACD is close to a bullish crossover
- Supertrend continues to trail upward, reinforcing trend support
Meanwhile, India VIX closed at 9.47, down 2.09%, reflecting subdued volatility and a stable market environment.
Key Levels to Watch – Nifty
- Support: 26,050 followed by 26,000
- Resistance: 26,250 and then 26,300
With key averages reclaimed and momentum improving, the near-term outlook favours a buy-on-dips strategy, unless there is a sharp rise in volatility.
Nifty Bank Outperforms with 17.15% Gain in 2025
The Nifty Bank index ended the final session of CY2025 at 59,581.85, up 0.69%, and significantly outperformed the broader market with an annual gain of 17.15%.
Technical Outlook for Nifty Bank
On the daily chart, Nifty Bank continues to display a double-bottom continuation structure, reflecting sustained buying interest at lower levels. Similar to Nifty, the open and low were positioned close together, indicating stable intraday price action.
The index has reclaimed both the 10-day and 20-day EMAs, confirming short-term strength, while the broader sequence of higher highs remains intact, keeping the overall trend positive.
Momentum indicators remain supportive:
- RSI has strengthened and is placed near 60, signalling bullish momentum
- MACD has improved, supporting the continuation of the recent recovery
- Supertrend continues to trail higher, suggesting sustained upward momentum
Key Levels to Watch – Nifty Bank
- Support: 59,200 followed by 59,100
- Resistance: 59,850 and the psychological 60,000 mark
As long as the index holds above its key support zones, the broader trend remains favourable, with buy-on-decline strategies preferred in the near term.
Market Outlook for 2026
Both benchmark indices ended 2025 on a strong footing, supported by:
- Reclaimed short-term averages
- Improving momentum indicators
- Low volatility environment
While short-term consolidations cannot be ruled out, the overall structure for Nifty and Nifty Bank remains positive, favouring selective accumulation on dips rather than aggressive profit booking.
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