New Delhi, Dec. 28 -- Dear reader,

A happy New Year 2026 in advance!

Last week, I wrote that the Nifty was headed for a decisive phase and bulls still had a fighting chance of pushing prices here. A short trading week typically favours bulls as historical evidence has shown. Read last week's article here. The bulls attempted to boost prices, but with limited success. The broad-based Nifty rallied mildly, whereas the Bank Nifty slipped. Global markets appeared nervous as bullion saw unprecedented safe-haven buying.

The trigger was the escalation of hostilities in Eastern Europe. As hopes of a quick peace between Ukraine and Russia receded into the background, profit-taking emerged in financial assets (equities and bonds). As I expected,...