Market Wrap

The Nifty opened on a positive note and extended gains in early trade, but the momentum quickly fizzled out as selling pressure resurfaced in the second half. The index drifted back toward Tuesday’s lows and ended the session down 0.32%, closing just above a crucial technical support zone. Broader markets remained under stress for the second consecutive session, with sharp cuts across several mid- and small-cap stocks, reinforcing the risk-off tone.

Among sectors, metals showed relative resilience on expectations of a possible US rate cut, while most other sectors struggled to attract sustained buying. Globally, markets traded with a subdued bias ahead of the Fed decision, and the same caution reflected in domestic sentiment. On the macro front, India - US trade talks resumed and will continue through 12 December, keeping tariff and market access developments in focus. Despite steady institutional participation, heightened volatility ahead of weekly expiry led to choppy intraday moves.

With today’s close, the Nifty now hovers near a critical support band of 25,680 - 25,520, making the next session technically significant.

What's Ahead

The spotlight tonight will be on the US Fed policy decision, where a 25 bps rate cut is largely priced in. The key trigger for markets, however, will be the commentary on the future path of rate easing. A clearly dovish signal could lift global risk appetite, while a cautious stance may deepen pressure - especially in mid- and small-cap stocks where recent sharp declines have already dented confidence.

Domestically, tomorrow’s Sensex weekly expiry is likely to keep volatility elevated. Traders will closely track Nifty supports at 25,680 / 25,600 / 25,520 and resistances at 25,840 / 25,920. Updates from the ongoing India–US trade negotiations could also drive stock-specific action in IT, pharma, and industrial names.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 closed lower by 81.65 points (-0.32%) at 25,758.00, marking its third consecutive session of decline as late-session selling erased early gains and pulled the index back toward its intraday low of 25,734.55, after oscillating between 25,947.65 on the upside and opening at 25,864.05. The RSI slipping well below 50 signals weakening momentum, while the index has now drifted down to the 50-day EMA, which remains a critical level to be decisively tested. The inability to hold higher levels confirms near-term supply pressure, and unless the index shows a swift rebound, the trend may remain vulnerable. Immediate supports are placed at 25,615 and 25,528, while any recovery is likely to face resistance near 25,897 and 25,984.

Bank Nifty

The Bank Nifty ended lower by 261.95 points (-0.44%) at 58,960.40 after opening at 59,281.55 and swinging within a wide intraday range of 59,440.90–58,853.90, as broad-based weakness across PSU and private banks kept the index under pressure despite minor support from select stocks. The RSI slipping further below 55 reflects fading upside momentum, and the breach of the 20-day EMA after multiple sessions of defense is a clear short-term negative signal. Although some buying emerged near the day’s lows, the index failed to reclaim the 20D EMA, keeping the bias cautious. Near-term supports are seen at 58,615 and 58,401, while any pullback toward 59,306 and 59,520 is likely to encounter stiff resistance.

Nifty Financial Services

The Nifty Financial Services index slipped 145.45 points (-0.53%) to close at 27,404.30, as persistent selling in heavyweight financials outweighed selective strength in insurance and NBFC names. With a negative market breadth and continued inability to sustain above recent consolidation levels, the index remains in a corrective phase. The structure points toward further pressure if immediate support around 27,235 fails, with the next key downside cushion placed near 27,134. On the upside, recovery attempts may face hurdles near 27,563 and 27,665, making any bounce likely to be shallow unless broader participation improves.

Sensex

The BSE Sensex declined 275.01 points (-0.32%) to end at 84,391.27, oscillating in a risk-off environment where heavyweights from banking, IT, and select consumption pockets dragged the index despite modest support from metals, pharma, and defensives. The negative market breadth underscores weak participation, and the failure to hold above the 84,800–85,000 zone indicates exhaustion at higher levels. Technically, the index is hovering uncomfortably close to its near-term support band of 83,972–83,702, a decisive break of which could invite deeper profit-booking. On the upside, strong resistance continues to cap recovery attempts near 84,843 and 85,112.