Market preview: Indices turn green after Christmas holiday, smooth rally expected today

The three-day negative streak finally ended as the market rushed upside during the last trading session on Wednesday after it was closed on Tuesday for Christmas holiday. BSE Sensex jumped 179.79 points or 0.54 percent up at Rs 35,649.94 while Nifty50 rolled up 66 points at Rs 10,729.85, closing 0.60 per cent high on Wednesday. 

Positive start of Asian markets and overnight rally in the US markets can help Indian market gain today.

Thursday's trading will likely to have a volatile trading setup as the market will be impacted due to global weakness. However, strong rally in the international markets as even a slight recovery can help the Nifty breach the levels of 10,760 during today's session. 

If Nifty hits the upper target of 10,800, the market will likely to get stronger in the coming weeks. Rupee appreciation, the US political issues, contributions from auto, IT, infrastructural, metal sectors could drive the national indices towards higher brackets in upcoming sessions. 

Kunal Saraogi, CEO Equity Rush said, "Thursday's trading session can expect a smooth rally due to green closing yesterday. Sectors like Auto, IT, and banking will be watchful".

"The 0.60 per cent surge of the Nifty 50 yesterday is positive for markets", told Saraogi to Zee Business online. 

The green trend prior to closing on Wednesday was due to short covering. Thursday will be the December's expiry day for the derivative contracts which also made large-cap and mid-cap stocks sail upwards in the last couple of hours during the last trading session. 

"The key support zone will be at 10,650 levels for Nifty and 26,500 for Bank Nifty. While the levels of 10,800 and 27,100 for Nifty 50 and Bank Nifty respectively will be immediate resistance levels for the trading hours", Saraogi added. 

Though all the major sectors closed green on Wednesday, pharma and IT were the only sectors among losers. TCS, the IT giant dipped 1.5 per cent down on Wednesday. While ZEEL was among the top gainers, surging 4.25 per cent.