Markets Roar Back: Nifty Breaks Trendline as Auto Spark Rally

Spread love

Short covering, global cues and sectoral rotation lift indices, but analysts warn key resistance zones still loom ahead.

By S JHA

Mumbai, December 19, 2025 — Tracking firm global cues, Indian indices on Friday soared, reversing corrective phase in the market. Analysts claim that the markets are setting up for gains in the coming day even while technical hurdles remain in place.

A sharp rally in the auto and defence stocks pulled the markets higher. Shriram Transport Finance was the showstopper of the day, trending while deal with Japanese investor.

Nifty paced ahead on Friday, while Sensex also logged robust gains. The early rally in the IT stocks subsided, passing baton to charge the markets to defence and auto scrips.

“From a technical standpoint, the 25850-25800 zone is likely to cushion any intermediate shortcoming, while the sacrosanct support is placed around the 25700 zone, which has safeguarded the benchmark over the last two weeks,” said Angel One in a note shared with clients after the market close on Friday.

The brokerage stated that “a decisive surge beyond 26050-26100 could only provide some amount of respite to the bulls and could pave the way for the lifetime zone of 26300-26325 in the coming future.”

The Delhi-based brokerage also stated that “short covering lifted Nifty over 150 pts, with the index closing firmly above the 10-EMA and forming a clear higher-high, higher-low structure.”

On breakout confirmation, it stated that “the move marks a decisive breakout above the downward-sloping trendline in place since 1 December 2025, signalling a shift in near-term trend bias.”

“Today’s rally also helped Nifty close well above the weekly 10-EMA, strengthening the broader trend setup. Nifty futures jumped 159 pts with 4% OI decline, confirming short unwinding, while Defence led sectoral gains (+2%+), followed by Realty (+1.7%) and Tourism (+1%+),” added the brokerage.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)