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Market Set-Up Today 22 December 2025: Nifty, Bank Nifty & Global Cues

Writer
Nidhi Thakur
timer
December 22, 2025
Market Set-Up Today 22 December 2025: Nifty, Bank Nifty & Global Cuesblog thumbnail

Global Market Cues Setting the Tone

Overnight global markets provided a supportive backdrop for Indian equities.

US markets ended higher, with the Dow Jones gaining 183 points, reflecting continued risk appetite among global investors. Dow futures trading higher in early hours further reinforces positive sentiment.

Asian markets are trading on a positive note, indicating broad-based optimism across regions. The strongest indicator for Indian traders, GIFT Nifty, is up by 164 points, suggesting a firm to positive start for domestic benchmarks.

Such alignment between US markets, Asian peers, and GIFT Nifty typically leads to confident market openings unless disrupted by sudden macro news.

Institutional Flow Analysis and Market Impact

Institutional participation remains the backbone of the current market trend.

Foreign Institutional Investors bought shares worth ₹1,831 crore, while Domestic Institutional Investors added ₹5,723 crore. This results in a combined net inflow of ₹7,554 crore into the cash market.

When both FIIs and DIIs are net buyers, it signals strong conviction in market stability. Historically, such sessions often see:

  • Reduced downside risk
  • Better follow-through on breakouts
  • Strength in index heavyweights and banking stocks

This flow data supports a continuation of the prevailing uptrend rather than a reversal.

Derivatives Data and Volatility Outlook

Derivatives indicators point toward a controlled bullish environment.

The Nifty Put Call Ratio has moved up to 1.13 from 0.83, indicating increased put writing activity. This suggests that traders are expecting the market to hold higher levels.

India VIX has cooled off to 9.71, down 1.32 percent. A low volatility environment generally supports trending moves and discourages aggressive short positions.

Together, rising PCR and falling VIX reflect confidence rather than complacency.

FII Positioning in Index Derivatives

FII data in index derivatives further strengthens the positive outlook.

There has been an increase in futures long positions and a reduction in futures shorts. On the options side, significant additions in put positions and reduction in call shorts indicate expectations of market stability with limited downside.

This type of positioning usually aligns with gradual upside moves rather than sharp spikes, making it favorable for positional traders.

Key Option Levels to Watch

Option data highlights important reference levels for today’s session.

The highest call open interest is placed at 26000, while the highest put open interest stands at 25900. The maximum pain level is around 25950.

This creates a crucial zone between 25950 and 26000. A sustained move above 26000 may lead to short covering, while holding above 25950 keeps the structure intact.

Technical Outlook for Nifty

Nifty is likely to open above its 20-day moving average near 26000, indicating a positive bias.

Immediate resistance is seen at 26100. A decisive move above this level can open the door for 26200 and 26300 in the near term.

On the downside, the 26000 to 25950 zone acts as immediate support. Below this, 25840 becomes the next important level to watch.

As long as Nifty holds above 25950, the trend remains favorable for buy-on-dips strategies.

Technical Outlook for Bank Nifty

Bank Nifty continues to outperform, trading above its 20-day moving average near 59275.

On the upside, 59600, 59800, and the psychological 60000 level are key targets. Support is placed at 59000, followed by a stronger base near 58700.

Strength in Bank Nifty often provides stability to the broader market, making it a key index to track during intraday and positional trades.

What This Means for Indian Market Participants

For intraday traders, dips toward support zones may offer buying opportunities with disciplined risk management.

Positional traders can continue to stay aligned with the trend while trailing stops near key support levels.

Long-term investors may use phases of consolidation to accumulate quality stocks, especially in sectors backed by institutional buying.

All market participation should remain aligned with SEBI guidelines and individual risk profiles.

Frequently Asked Questions

Is the market bullish today, 22 December 2025?
Yes, the overall set-up is positive, supported by global cues, institutional buying, and bullish derivatives data.

What are the key Nifty levels to watch today?
Immediate support lies between 25950 and 26000, while resistance is placed at 26100 and above.

Why is Bank Nifty important for today’s trade?
Bank Nifty is showing relative strength and often leads market direction, especially during trending sessions.

Does low India VIX favor traders?
Yes, low volatility supports trend-based strategies and reduces the risk of sharp intraday swings.

Conclusion and Investor Note

The market set-up for 22 December 2025 reflects a stable and confident environment driven by strong global cues, solid institutional flows, and supportive technical indicators. While short-term fluctuations are part of market behavior, the broader structure remains constructive.

For traders and investors looking for disciplined market participation, a research-backed approach is essential. Swastika Investmart, a SEBI-registered stockbroker, offers strong research insights, advanced trading platforms, and dedicated customer support to help investors navigate markets with confidence.

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