Market Wrap

Indian equities began the week on a weak note, with the Nifty slipping below the crucial 25,900 mark amid sustained selling pressure. Although a late-session bounce helped the index recover marginally to close just above 25,950, it still ended the day with a loss of nearly 0.86%. Broader markets witnessed sharper pain as selling intensified across mid- and small-cap stocks, reflected in weak market breadth where declining shares outnumbered advances by nearly 4.5 to 1.

Sectorally, pressure was widespread with all major indices ending in the red—except IT, which showed notable resilience and emerged as the sole gainer in the NIFTY50 universe. Globally, despite Wall Street’s positive close last week, equity markets across Asia and Europe opened the new week on a soft footing, adding to the cautious domestic undertone.

Technically, Nifty continues to struggle below the 26,200 supply zone and has decisively slipped under the psychological 26,000 support. The index now hovers close to its last short-term cushion near 25,840. A breach of this level could open the door for a further decline toward the 25,450–25,500 zone, potentially revisiting three-week lows. Rising crude oil prices and persistent FII outflows further weighed on sentiment.

What's Ahead

The near-term outlook for Nifty remains cautious to mildly negative as long as the index stays below the 26,000–26,100 resistance band. Traders will closely track two major global triggers on 10 December - the India–US trade framework discussions and the US Federal Reserve’s policy decision, where a 25 bps rate cut is widely expected. These events could shape currency moves, influence IT sector sentiment, and impact rate-sensitive stocks.

On the technical front, key supports lie at 25,900 and 25,840, while resistance is stacked at 26,000, 26,050, and 26,100. A sustained breakdown below 25,840 could accelerate downside momentum, especially in the broader market space, keeping volatility elevated in the coming sessions.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended sharply lower at 25,960.55, breaking below the psychological 26,000 mark after swinging between 26,178.70 and 25,892.25, indicating rising intraday volatility and strong distribution at higher levels. The RSI slipping toward the 50 zone confirms a clear loss of bullish momentum, with PSU banks, metals and media stocks exacerbating the downside. With persistent FII selling, a weak rupee and global bond yield pressures, the index remains vulnerable in the near term. A decisive break below the 25,842–25,772 support cluster could accelerate declines, while any recovery attempt is likely to face stiff resistance in the 26,070–26,141 zone.

Bank Nifty

The BANK NIFTY closed at 59,238.55, extending its corrective phase as selling pressure gripped both PSU and private lenders, reflected in a fully negative breadth. The index failed to sustain above 59,700 and slipped close to the day’s low of 59,030.60, highlighting weak buying interest at higher levels. The RSI cooling off toward 55 signals fading bullish strength and rising downside risk. Immediate supports lie at 58,893 and 58,679, and a breakdown below these levels could invite further unwinding, while resistance is firmly placed at 59,584 and 59,798.

Nifty Financial Services

The FINNIFTY ended lower at 27,687.15 as broad-based selling engulfed all 20 constituents, with heavy damage in NBFCs and finance-led PSU names. The inability to defend the 27,800 zone reflects weakening structure, and continued pressure from stocks like LICHSGFIN, PFC and RECLTD reinforces the bearish undertone. As long as the index remains below 27,878–27,980, rebounds are likely to be sold into. On the downside, the 27,550–27,449 support band becomes crucial; a breakdown here may extend the corrective move.

Sensex

The BSE SENSEX settled at 85,102.69 after slipping over 600 points, with selling pressure concentrated in capital goods, metals and select financials, while IT provided limited cushioning. The index continues to trade below its rising short-term trend, suggesting weakening momentum despite a stable heavyweight like HDFCBANK. The near-term structure remains fragile, with immediate support placed at 84,753 followed by 84,507, while any upside attempt is likely to face strong resistance near 85,546 and 85,791. Sustained trade below 84,750 could tilt the bias more decisively in favour of bears.