Nifty Cruises with Double Bottom Resumption of Primary Uptrend

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The technical developments suggest that the primary uptrend is back on track, with brokerage expecting the calendar year to end on a strong note, potentially marking fresh milestones.

By S JHA

Mumbai, December 22, 2025 — With IT stocks powering indices, Nifty gave a decisive confirmation of the resumption of a primary uptrend. Brokerages asserted that the resumption of bullish tone in the markets may take indices higher in the coming days.

Tracking firm closing of the US bourses on Friday, the Indian market fired all cylinders on Monday. Nifty and Sensex closed the day with heft gains.

Infosys and Wipro charged the Nifty IT. Gains in the IT bellwether stocks sustained through the session on Friday. Tech Mahindra, TCS, and HCL Technologies also extended support to the markets.

The Nifty chart gave a double bottom breakout confirmation, said chartists. Brokerages are now sounding bullish on the 50-share index to close the years with gains. Early signs of pre-budget rally were also seen in the markets. The rail and defence stocks gave credence to buzz that the budget rally may be on the cards. The likes of Titagarh Wagons, Rail Vikas Nigam, as well as Bharat Dynamics and shipyard scrips logged handsome gains in the markets on Friday.

“Today’s session witnessed strong follow-through buying, clearly indicating a resumption of the primary uptrend. A closer look at intraday charts shows that prices successfully defended the 25693 low, formed a higher bottom, and today crossed the previous swing high of 26050, confirming a higher-top higher-bottom structure along with a ‘Double Bottom formation,” said Angel One in a note shared with clients after the market hours.

The Delhi-based brokerage also argued that “the technical developments suggest that the primary uptrend is back on track, and we expect the calendar year to end on a strong note, potentially marking fresh milestones.”

“In this scenario, the 26300–26350 zone is seen as the immediate upside target, with further targets likely to unfold as momentum sustains. On the downside, the double bottom breakout coincides with a bullish gap around 26050–26000, which is expected to act as immediate support, and any dip towards this zone is likely to attract buying interest,” added Angel One.

It also stated that “short covering lifted Nifty over 200 points, with the index closing firmly above the key EMA and forming a strong bullish green candle, signalling improving trend strength.”

“A 1.5% decline in open interest alongside 172 points jump in Nifty futures confirms short unwinding as the primary driver of the rally,” it added. The brokerage also stated that “breadth in the markets also remained robust, with 40 out of 50 Nifty stocks closing in the green, indicating broad-based participation.”

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