Pre-Market Derivatives and Technical Set-up 23-DEC-2025

Market sentiment remains constructive as benchmark indices witnessed strong bullish momentum in the previous session, supported by favorable technical structure and derivatives positioning. Index Overview Broad Market Index The index opened with a strong gap-up of nearly 90 points and continued its upward momentum throughout the session, touching higher zones near 26,180. It successfully recovered losses of the previous two weeks and closed near the day’s high with gains of over 200 points. The daily chart reflects a bullish candle formation, with the index forming higher highs and higher lows over the last two sessions, indicating strengthening trend structure. For further upside, the index needs to sustain above the 26,150 zone. If this level holds, the next upside targets are placed around 26,250 followed by 26,325. On the downside, immediate supports are seen at 26,050 and 25,950. From a derivatives perspective, maximum Call open interest is positioned near 26,200 followed by 26,150, while maximum Put open interest is seen at 26,100 and 26,000. Call writing activity is visible at higher strikes, whereas put writing at lower strikes indicates downside protection. Option data suggests a broader range between 25,800 and 26,500, with an immediate trading range of 26,000 to 26,300. Large-Cap Index The large-cap index opened with a gap-up near 85,150 and maintained bullish momentum throughout the session. It crossed key resistance levels comfortably and extended gains towards higher zones near 86,600. The index is trading above all short-term moving averages, reinforcing the strength of the ongoing uptrend. The daily chart shows a bullish Marubozu candle along with consistent higher highs, suggesting continued momentum in the near term. The index must hold above 85,400 to extend the move towards 85,900 and eventually retest its previous lifetime high zone. Supports are placed at 85,300 followed by 85,000. Banking Index The banking index started on a positive note near 59,200 and moved higher during the initial hours before entering a phase of consolidation. It traded within a narrow range during the latter half of the session, indicating healthy consolidation after recent gains. The index formed a small bullish candle on the daily chart and closed above its short-term exponential moving average, highlighting buying interest at lower levels. Holding above 59,250 could lead to an upside move towards 59,500 and 59,750, while immediate supports are seen at 59,000 and 58,750. Sectoral Outlook Sectors Showing Relative Strength - Capital Markets and Exchanges Metals and Mining Information Technology Pharmaceuticals and Healthcare Automobile and Auto Ancillaries Energy and Resources Financial Services (select segments) Sectors Showing Relative Weakness - NBFC and Microfinance Private Banking (select names) Consumer Durables Power and Energy Trading Electronics Manufacturing Select Healthcare and Renewable Energy segments Conclusion The overall market structure remains positive with strong participation across key indices. While volatility may persist, higher support levels and favorable derivative positioning indicate that dips could attract buying interest. Traders are advised to remain disciplined, respect support-resistance levels, and manage risk appropriately. Disclaimer This content is for educational and informational purposes only. We are not SEBI registered investment advisors. The views expressed are personal opinions based on technical and derivative analysis. Trading and investing in securities markets involve risk. Please consult a SEBI registered advisor before making any investment or trading decisions. The author shall not be responsible for any financial losses arising from the use of this information