Market Wrap

Indian equities staged a fragile comeback on Thursday, with the Nifty50 snapping its losing streak and closing just above the crucial 26,000 mark. The index oscillated sharply through the session but ended with a modest 0.18% gain, signalling measured confidence among market participants.

The standout performer was the IT sector, where the Nifty IT index surged nearly 1.5%, aided by broad-based buying across all heavyweights - indicating strong institutional appetite for the sector.

Global cues were mixed: US markets ended strongly overnight, but this momentum failed to lift Asian peers, which remained subdued. European markets, however, mirrored Wall Street’s strength and traded firmly in the green.

On the macro front, the Indian rupee briefly touched a record low of ₹90.43, reflecting persistent foreign outflows and dollar strength before stabilising. Rising geopolitical interest was also in focus as Russian President Vladimir Putin’s India visit raised expectations of potential agreements across defence, energy, and capital goods - likely to benefit associated sectors.

Overall, the mood remained cautious as global investors awaited the US Fed’s 10 December meeting, keeping risk appetite in check.

What's Ahead

Market attention now shifts entirely to tomorrow’s RBI Monetary Policy - a key event that could inject significant volatility. Traders will look for signals on inflation trajectory, growth assessment, and liquidity stance.

• Upside triggers: A decisive breakout above 26,100–26,160 may extend the Nifty’s upward momentum.

• Downside risks: Support sits at 25,900–25,840; a breach could re-open room for a deeper corrective phase.

Additionally, near-term direction will hinge on:

• Movement in crude oil prices,

• Rupee stability, and

• Global cues, particularly from the US.

The stage is set for an event-heavy Friday with potential for sharp intraday swings.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty50 closed at 26,033.75 (+0.18%), reclaiming the 26,000 mark after a volatile session as value buying returned in IT and select heavyweights. The index saw strong contributions from TECHM, HDFCLIFE, TCS, SBILIFE and BEL, while pressure from HDFCBANK, KOTAKBANK, ICICIBANK, INDIGO and RELIANCE capped gains. Intraday, it oscillated between 25,938.95 and 26,098.25, with market breadth favouring the bulls (34 advances vs 16 declines). Technically, Nifty found support near the 20-day EMA, snapping its four-day losing streak, though upside remained limited due to weakness in media, pharma, soft rupee and FII outflows. The RSI near 60 signals neutral-to-positive momentum, with immediate support at 25,920/25,850 and resistance at 26,148/26,219.

Bank Nifty

Bank Nifty ended at 59,288.70 (-0.10%), reflecting a muted undertone as major financial heavyweights like IDFCFIRSTB, KOTAKBANK, ICICIBANK, SBIN and HDFCBANK dragged the index lower, offset partially by gains in INDUSINDBK, CANBK and AXISBANK. The index traded within a narrow range - 59,062.15 to 59,548.70 - and formed a long-tailed doji, signalling indecision ahead of crucial triggers. The RSI holding steady in the 60–65 band indicates a mildly bullish structure despite near-term hesitation. Immediate support lies at 58,933/58,712, while resistance levels are placed at 59,645/59,865.

Nifty Financial Services

FINNIFTY closed at 27,611.45 (-0.07%), ending flat with a mixed sectoral performance. Gains in HDFCLIFE, SBILIFE, ICICIGI and BAJFINANCE cushioned the downside, even as MUTHOOTFIN, SBICARD and KOTAKBANK pressured the index. Market breadth leaned positive, reflecting selective buying. The index now finds support at 27,454/27,352 and faces resistance at 27,782/27,883.

Sensex

The Sensex gained 158.51 points to end at 85,265.32 (+0.19%), supported largely by strong buying in IT majors TCS, TECHM, INFY and HCLTECH, while MARUTI, ETERNAL, KOTAKBANK, TITAN and ICICIBANK limited the upside. Market breadth stayed supportive with 18 stocks advancing. The index holds near-term support at 84,910/84,665, with resistance positioned at 85,704/85,949.