Indian equities are expected to open on a weaker note on December 16, with GIFT Nifty indicating a start near 26,038, around 74 points lower. Market sentiment remains cautiously constructive amid mixed global cues and the absence of major domestic triggers. Investors are likely to stay focused on global market trends, crude oil prices, and institutional fund flows for direction.

In the previous session, the Nifty 50 opened weak but recovered from its intraday low of 25,904 to touch a high of 26,047, indicating buying interest at lower levels, albeit without strong follow-through. The index continues to trade within a consolidation range of 25,900–26,100, reflecting market indecision. Immediate resistance is placed at 26,150–26,200, with a decisive breakout potentially paving the way toward 26,300. On the downside, key supports are seen at 25,900 and 25,850 in the near term.

Bank Nifty also rebounded from its intraday lows to close near 59,461.8, forming a bullish candlestick pattern that signals emerging demand on declines. This price action suggests that buyers are actively defending lower levels despite muted overall momentum. Immediate resistance is seen around 59,200, and a sustained breakout above this level could lead to an upside move toward 59,700–59,800. The 59,200–59,300 zone remains a crucial support area.

In terms of institutional activity, Foreign Institutional Investors (FIIs) continued their selling trend in December, offloading equities worth Rs 1,468 crore on December 15. In contrast, Domestic Institutional Investors (DIIs) provided support to the market by purchasing equities worth Rs 1,792 crore on the same day.

Given the prevailing volatility and ongoing global uncertainties, traders are advised to remain selective and adopt a buy-on-dips strategy. Maintaining disciplined leverage, using tight trailing stop-losses, and booking profits in a staggered manner are recommended. Fresh long positions should be considered only on a sustained breakout above 26,300, accompanied by close monitoring of global cues and key technical levels.