Nifty Outlook: Nifty 50 gained for the second consecutive session as RBI cut the repo rate by 25 basis points to 5.25%. However, there was a marginal decline of 0.06% in one session during the week. With this, the index briefly broke its three-week winning streak. Despite this, the overall sentiment remained strong.
Now let us understand from the experts how the movement of Nifty will be on Monday 8th December and which levels will be important. But, before that, let us know what special happened in the market on Friday.
Impact of RBI policy on the market
The market closed at a high on Friday. This was supported by decisions to cut interest rates and increase liquidity. RBI has made a total of 125 basis points rate cut so far in 2025. Also, government bond OMO purchases of Rs 1 lakh crore and three-year dollar-rupee buy-sell swaps of $5 billion were announced to inject permanent liquidity into the system. This further increased market confidence.
Banking and financial stocks rise
Banking and financial stocks led the rise in Nifty 50. Shriram Finance, SBI and Bajaj Finserv were among the top gainers. On the other hand, selling pressure was seen in Eternal, IndiGo and Trent and they were the major losers. Due to this, the difference in the index was clearly visible at the sectoral level.
Mixed performance of sectors
A mixed trend was seen in the sectoral index. Strong buying was seen in Nifty Financial Services, IT and Auto. At the same time, there was a decline in media, FMCG, consumer durables and pharma sectors. The same trend was seen in the broader market also. Nifty Midcap 100 rose 0.5%. At the same time, Nifty Smallcap 100 closed down 0.57%.
Will keep an eye on defense stocks
The annual meeting between Russian President Vladimir Putin and Prime Minister Narendra Modi may increase activity in the defense sector. The direct impact of any new defense partnership or trade agreement can be seen on the respective stocks. Investors will keep an eye on the signals coming out of this meeting.
market trend strong
The sentiment currently appears strong due to RBI’s rate cut, continuous domestic inflows into the Indian market and rising expectations of future rate cuts by the US Fed. Market experts believe that this support may persist in the near term.
Five mainboard IPOs will open this week
This week there will be more activity in the primary market as five mainboard IPOs – ICICI Prudential Asset Management Co, Nephrocare Health Services, Park Medi World, Wakefit Innovations and Corona Remedies are opening for investors. Due to this, there is a possibility of additional enthusiasm in the market.
Expert opinion on Nifty
Nandish Shah of HDFC Securities says that Nifty has again taken a strong stance and has returned above the 5-day EMA (around 26,100). According to him, the first resistance for the index will be at 26,300 and after that the next level is seen at 26,500. On the downside, the range of 25,950–26,000 remains the most important support at the moment.
Sudeep Shah of SBI Securities believes that the zone of 26,300–26,350 will be a big resistance for Nifty, which is around the previous swing high. If the index moves strongly above 26,350, chances of it reaching 26,500 and then 26,700 will increase. In case of a decline, the 20-day EMA, i.e. around 26,000–25,950 levels, will support the index.
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According to Rupak Dey of LKP Securities, the trend of Nifty may remain strong in the short term and there is a scope of going up to 26,300/26,440. He says that support exists at 26,060-26,000. As long as the index remains above 26,000, a strategy of buying on dips may prove to be better.
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