The Nifty index closed flat on Thursday, with a positive bias, as auto stocks saw activity following December sales reports. Analysts anticipate the index may break its consolidation phase, with a move towards 26,500-26,700 possible if it surpasses 26,200. A buy-on-dips strategy is recommended, focusing on banking, auto, and metal sectors, alongside risk management. Specific stock recommendations include SBI and Bank of Baroda for potential short-term gains.