Nifty Gears up for Bull Play as VIX Sinks with EMA Comforts

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Indian equity markets on Tuesday confirmed primary uptrends as bulls pumped PSU and rail stocks.

By S JHA

Mumbai, December 23, 2025 — Indian equity markets on Tuesday confirmed primary uptrends as bulls pumped PSU and rail stocks. Warming up to the upcoming Budget, investors picked up the PSU and rail stocks in a blistering pace. Investors’ interests in the PSU pack are being seen after a gap of a several months.

Rail stocks such as Rail Vikas and Titagarh Wagons have been languishing at their respective 52-week lows. They were in a spotlight in yesterday’ sessions. They were again commanding spotlight on Tuesday. The follow through action in rail stocks is seen as a confirmation of bullish sentiments in them ahead of the unveiling of the Union Budget.

Coal India Limited led the bulls into the markets, Tracking the news reports of the coal behemoth coming up with an IPO for Bharat Coke, the market cheered as the stock almost gained four percent on Tuesday. The sentiments brought interests in likes of ONGC, Powergrid, and NTPC.

“Traders are advised to maintain a positive bias and use any consolidation or intraday dip as a buying opportunity. In this setup, the bullish gap around 26050–26000 is seen as immediate support, while 26300–26350 acts as the near-term resistance,” said Angel One in a market note shared with clients.

The brokerage also stated that “we prefer a step-by-step approach and will reassess higher targets as the move unfolds.” “Short covering lifted Nifty off the lows, helping it close marginally higher (+4 pts) and firmly above key EMA levels,” added the Delhi-based brokerage.

It also noted that market breadth is positive as “participation improved, with a higher share of stocks closing above their 10, 20, 50 and 100 EMAs versus yesterday, indicating strengthening internals.”

“India VIX recorded its lowest-ever closing level, down 32% from recent swing highs of 13.85, showing subdued risk perception. Media, Metals, Energy and FMCG gained over 0.5%, while IT and PSU Banks ended as the top laggards,” it added.

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