Market Wrap

The market opened on a weak footing and selling pressure only intensified through the session, dragging Nifty below the 25,900 mark before a modest late-hour recovery helped trim losses. The rebound, however, lacked momentum, and the index ultimately closed below the psychological 26,000 level, down 0.18%.

Amid the broader softness, IT stocks were the day’s standout performers, supported by steady institutional buying and a strengthening chart structure that points to a renewed uptrend after weeks of consolidation. FPIs extended their selling streak to a fifth straight session, adding to intraday volatility.

Globally, Asian and European cues were mixed with no clear trend. Back home, macro sentiment weakened as the rupee slipped to a record low of 90.30 per dollar, raising concerns about imported inflation and a potentially more cautious RBI stance. India’s latest services PMI remained in expansion territory, though rising input costs could pressure margins in rate-sensitive sectors.

On the geopolitical front, Russian President Vladimir Putin’s India visit (Dec 4–5) is set to focus on defence and energy cooperation—developments that may stir select defence and OMC stocks.

What's Ahead

Markets are likely to remain on edge as the RBI MPC meeting kicks off today, with the policy outcome scheduled for 5 December. The rupee’s record weakness heightens the significance of the central bank’s commentary on inflation, liquidity, and currency stability.

Globally, traders are bracing for the US Fed policy on 11 December, another major macro catalyst that could sway risk appetite.

On the technical front, Nifty stays vulnerable below 26,150. Immediate supports are placed at 25,900 and 25,840, while resistance lies at 26,080 and 26,160. A decisive move above resistance could ease selling pressure, but continued FPI outflows or further dollar strength may keep the index volatile in the sessions ahead.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty slipped 46 points to close at 25,986, extending its losing streak to a fourth session as FII selling, a record-low rupee, and weak global cues pressured sentiment. The index opened slightly higher but drifted to an intraday low of 25,891, breaching the 20-day EMA before recovering to close just below 26,000. Market breadth remained weak with 37 losers versus 13 gainers, led by declines in MAXHEALTH, TATACONSUM and ADANIENT, while IT names like WIPRO, TCS and INFY offered partial support. The RSI has slipped further below 60, signaling waning bullish momentum and increasing vulnerability to downside moves. Immediate supports are placed at 25,849 and 25,764, while resistance levels sit at 26,125 and 26,211; the index needs a decisive close above these resistance zones to regain strength.

Bank Nifty

Bank Nifty outperformed, gaining 74 points to close at 59,348, supported primarily by strength in ICICIBANK, HDFCBANK, AXISBANK and KOTAKBANK, even as PSU banks came under sharp pressure with PNB, CANBK, BANKBARODA and SBIN dragging. The index rebounded after briefly testing the 20-day EMA, forming a supportive structure near its lower zone, while RSI holding around 65 indicates that bullish momentum remains intact despite recent selling pressure. Immediate support is seen at 58,861 and 58,560, while resistance lies at 59,835 and 60,137; a breakout above 60,137 could open the path for a fresh upside swing.

Nifty Financial Services

FINNIFTY added 64 points to end at 27,629, aided by buying in ICICIBANK, HDFCBANK, AXISBANK and KOTAKBANK, though broader sentiment stayed weak with 16 of 20 constituents in the red as BSE, PFC and CHOLAFIN posted notable declines. Despite the mixed setup, the index continues to hold above key support zones, with near-term levels placed at 27,436 and 27,317, while resistance is seen at 27,823 and 27,943. Sustained trade above the resistance band could help rebuild momentum, but weak breadth remains a concern.

Sensex

Sensex closed marginally lower at 85,106, slipping 31 points as selling in BEL, TITAN, M&M, NTPC and SBIN offset gains in heavyweights TCS, ICICIBANK, INFY and HDFCBANK. The index continues to show resilience near its upper range despite weak market breadth, with 20 declines versus 10 advances. Key support levels are positioned at 84,604 and 84,294, while resistance lies at 85,610 and 85,921; a close above 85,610 would be the first signal of renewed upward momentum, whereas sustained weakness in PSU names may keep the index in a consolidation phase.