Market Wrap

Indian equities saw a brief respite from the recent selling spree, with the Nifty 50 posting a mild recovery, although overall sentiment stayed cautious. Global markets offered mixed cues, keeping traders on edge, but domestic data helped stabilize the mood.

A key positive came from the November GST collection, which rose to ₹1.70 lakh crore, signalling resilient consumption and economic activity even as the economy adjusts to the recent interest rate cuts. This supported selective buying in defensive and consumption-led sectors, which continued to attract attention as broader risk appetite remained subdued.

However, the broader markets still struggled to build strong momentum, with investors awaiting clearer triggers - either from global events or domestic macro indicators.

What's Ahead

All eyes now turn to the Federal Reserve’s 9–10 December policy meeting, as rising speculation of a potential rate cut could steer global liquidity flows, impact dollar-rupee dynamics, and influence foreign portfolio flows into emerging markets like India.

Domestically, markets will track upcoming macro announcements and corporate earnings prints to determine whether today’s modest rebound can evolve into a sustained recovery or if the recent bout of weakness is likely to re-emerge. Investors should remain selective, with defensives and consumption themes likely to stay in focus until stronger catalysts appear.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 slipped 0.10% to close at 26,175.75, posting a neutral market breadth of 25 advances and 25 declines. The index saw early strength but lost momentum as heavyweight weakness in MAXHEALTH, INDIGO, BAJFINANCE and SUNPHARMA dragged sentiment, while gains in ULTRACEMCO, MARUTI, BEL and EICHERMOT helped cushion the downside. Despite the mild decline, the RSI hovering near 60 indicates underlying positive momentum remains intact. On the technical setup, the index continues to trade within a narrow range, suggesting consolidation ahead of major global triggers. Immediate support is placed at 26,036, followed by 25,951, while resistance levels remain firm at 26,312 and 26,398. A breakout on either side is likely to dictate near-term directional clarity.

Bank Nifty

The NIFTY BANK ended lower by 71.35 points at 59,681.35, slipping 0.12% as heavyweight pressure from INDUSINDBK, SBIN, CANBK and HDFCBANK outweighed selective buying in BANKBARODA, KOTAKBANK and PNB. Price action reflected intraday volatility with the index oscillating between 59,527 and 60,114 before settling near the day’s mid-point. The RSI remains around 70, reinforcing strong bullish undertones despite the mild correction. However, the index may remain sideways until fresh triggers emerge from rate-sensitive cues. Immediate support rests at 59,194 and 58,893, while upside levels to watch are 60,169 and 60,470 - a sustained move above the latter could open up fresh long opportunities.

Nifty Financial Services

The NIFTY Financial Services index declined 0.27% to 27,814.50, dragged by BAJFINANCE, RECLTD and CHOLAFIN, while gains in MUTHOOTFIN, KOTAKBANK, ICICIGI and SBILIFE limited the downside. Market breadth stayed slightly negative, signalling mild selling pressure across financial counters. From a technical perspective, the index is exhibiting a consolidative structure as it holds above key short-term supports. Immediate support zones lie at 27,618 and 27,499, while resistance is capped at 28,006 and 28,125. A close above 28,125 will be crucial for any meaningful upward breakout.

Sensex

The SENSEX edged lower by 64.77 points to 85,641.90 amid mixed breadth, with declines in BAJFINANCE, SUNPHARMA and major financial names offset by strength in TMPV, MARUTI, BEL, KOTAKBANK and HCLTECH. The index’s intraday movement suggests continued consolidation at higher levels, with markets awaiting stronger cues for directional continuity. The chart structure remains stable, with the index forming higher supports in recent sessions. Key near-term support levels are placed at 85,129 and 84,818, while resistance is seen at 86,134 and 86,445. A breakout above 86,445 may trigger renewed upside momentum.