Sensex Prediction for Tuesday: Bulls eye 86100 breakout after sustained year-end rally - Key levels to watch on Dec 23

Sensex Prediction for Tuesday, December 22: The Indian stock indices closed significantly higher on Monday, December 22, with benchmark Sensex jumping 638 points and the broader Nifty closing above 26,100 following heavy buying in IT, auto and metal shares amid foreign fund inflows and a rally in global markets on hopes of further rate cuts by the US Federal Reserve.

Sensex, Nifty Today, December 22

Building on the previous day’s rally, the 30-share BSE Sensex jumped 638.12 points or 0.75 per cent to settle at 85,567.48. During the day, it surged 671.97 points or 0.79 per cent to 85,601.33. The 50-share NSE Nifty climbed 206 points or 0.79 per cent to close above the 26,100 mark at 26,172.40.

Almost all the major sectoral indices traded in positive territory. Sectors including IT, metals, capital goods, and financials recorded gains, while real estate and consumer durables were the key laggards.

The BSE Midcap index rose by 0.86% and the Smallcap index jumped 1.12%.

The rupee rose for the second consecutive session as it opened 24 paise up at 89.41 against the US dollar after closing at 89.65.

Sensex Prediction for Tuesday, December 23

According to Aakash Shah, Research Analyst, said, “The BSE Sensex witnessed a strong bullish session, closing sharply higher with sustained buying interest throughout the day, reflecting improving market sentiment and risk appetite. The index maintained higher levels post the initial breakout, indicating continuation of positive momentum rather than short covering. Price action remained constructive, with the Sensex holding above its key intraday supports and closing near the day’s highs, signaling strength in the broader trend.”

“From a momentum perspective, the index continues to trade above its short- and medium-term moving averages, reinforcing the bullish bias. Heavyweight stocks played a major role in supporting the index, with IT and select telecom stocks emerging as key gainers, contributing significantly to the upside. On the other hand, select banking and capital goods stocks faced mild profit booking, acting as relative laggards but not enough to derail the overall trend,” Shah further said.

According to Shah, market breadth remained positive, suggesting broad-based participation rather than isolated buying. “Volumes were supportive, indicating genuine accumulation at higher levels,” he said.

Sensex Prediction for Tuesday: Technical outlook

According the research analyst, the technical structure for Tuesday remains firmly constructive. “On the technical front, 86,000–86,100 now acts as an immediate resistance, while the 85,000–85,100 range is expected to provide strong support and act as an accumulation zone on minor pullbacks,” he said.

Overall, the structure favours a buy-on-dips approach as long as key supports remain intact, he suggested.

Key levels to watch for Tuesday, Dec 23

Sensex gainers and losers today, December 22

Among Sensex firms, Trent rose the most by 3.56 per cent. IT shares Infosys jumped 3.06 per cent, Tech Mahindra by 2.09 per cent, HCL Tech by 1.67 per cent and TCS by 1.28 per cent. Bharti Airtel, Bharat Electronics, Tata Motors, Reliance and Maruti were among the major movers.

However, State Bank of India fell the most by 0.6 per cent, followed by Kotak Mahindra Bank, Larsen & Toubro and Titan.

The BSE smallcap gauge jumped 1.12 per cent, while midcap index climbed 0.86 per cent.

All sectoral indices ended higher. IT surged 1.99 per cent, BSE Focused IT by 1.72 per cent, capital goods by 1.65 per cent, industrials by 1.33 per cent, metal by 1.32 per cent and commodities by 1.05 per cent.

A total of 2,796 stocks advanced while 1,514 declined and 191 remained unchanged on the BSE.

Brent crude, the global oil benchmark, climbed 0.86 per cent to USD 60.99 per barrel.

On Friday, the Sensex jumped 447.55 points or 0.53 per cent to settle at 84,929.36. The Nifty climbed 150.85 points or 0.58 per cent to 25,966.40.