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Subdued Opening Seen For Nifty Today

Trends in the GIFT Nifty index futures for December delivery, which was trading at 26,320 at 7:30 am, indicates a subdued opening for Nifty today.

Nifty Technical Outlook

The Nifty opened lower on Friday but quickly reclaimed the 26,100 mark, extending gains for a second straight session after the RBI cut the repo rate by 25 bps to 5.25%. The index briefly broke its three-week winning streak during the week with a marginal 0.06% dip in one session. The RBI also announced liquidity-support measures, including Rs.1 lakh crore of OMO purchases in government bonds and a three-year $5 billion dollar-rupee buy– sell swap. Banking and financial stocks such as Shriram Finance, SBI and Bajaj Finserv led the advance, while Eicher Motors, IndiGo and Trent came under pressure and ended as key laggards. The Nifty surged 152.70 points closing at 26,186.45. The Nifty formed a bullish candlestick pattern on the daily chart, and we expect the buying interest to continue. The volatility index IndiaVIX has closed below 11 and we expect the volatility to remain low in the short term. The Nifty short-term trend remains bullish and the trend will turn bearish only below 25,900 levels. The 9-day simple moving average is placed at 26,102.53.

Domestic & Global Indices

U.S. stocks posted modest gains on Friday, with the Nasdaq and S&P 500 closing at one-month highs after inflation data met expectations. The Commerce Department reported the PCE price index rose 0.3% in September, unchanged from August, while the annual rate inched up to 2.8%, also in line with forecasts. The Dow index moved up by 104 points to close at 47,954.99 and the S&P 500 index moved up by 13 points to close at 6,870.40.

Derivatives Watch

* Based on Open Interest in Futures, FII’s have increased their long position by 2570 contracts and have increased their short position by 1342 contracts. FII's are net bullish by 1228 contracts.

* Based on Open Interest in Options, FII's were net bullish by 84156 contracts. In Nifty, the highest PUT OI was seen at 26000 and the highest CALL Open Interest was seen at 26400 strike.

* Based on Open Interest, we are bullish on Patanjali, SBI Card, Indus Tower, Chola Finance, Shriram Finance, Marico, LT Finance, AB Capital, Muthoot Finance and State Bank of India. We are bearish on Kaynes Technology, Hindustan Unilever, PGEL, Bandhan Bank, Amber Enterprises, IREDA, Petronet, HFCL, Sonacoms and IEX.

Economy & Stocks to Watch

* India and the United States will commence three-day talks on the first phase of their proposed bilateral trade agreement here from December 10, sources said. The visit is crucial as India and the US are working to finalise the first tranche of the pact. ”The three-day talks will start on December 10. It will conclude on December 12, and it is not a formal round of talks,” said one of the sources. The US team will be led by Deputy United States Trade Representative (USTR) Rick Switzer. This visit of the US officials marks their second trip since the imposition of a 25% tariff and an additional 25% penalty on Indian goods entering the American market due to the purchase of Russian crude oil.

* Denying reports of issuing any advisory to lenders to pause fresh financing to renewable energy projects amid significant overcapacity concerns, the Ministry of New & Renewable Energy (MNRE) has clarified that no such advisory has been issued to financial institutions for stopping lending to either renewable energy power projects or renewable energy equipment manufacturing facilities. However, MNRE has circulated the status of present installed domestic manufacturing capacities across various sectors of solar PV manufacturing to the Department of Financial Services (DFS) and NBFCs like PFC, REC, and IREDA. Sectors of solar PV manufacturing include solar modules as well as upstream stages like solar cells, ingots-wafers, polysilicon, as well as ancillary equipment like solar glass and aluminium frames.

* IndiGo which controls nearly 65% of the domestic aviation market has been at the centre of an unprecedented operational meltdown. Since December 2, the airline has cancelled more than 5,000 flights, impacting over 7.75 lakh passengers across the country. And passengers continue to suffer as more flights are being cancelled. Scenes of travellers stranded overnight, entire terminals filled with clueless passengers and repeated cancellations have defined one of the worst aviation disruptions India has seen in years. The collapse began soon after the rollout of Phase-II of the revised Flight Duty Time Limit (FDTL) norms, fatigue laws that increased weekly rest for pilots from 36 to 48 hours.

* ICICI Bank Ltd, on Saturday (December 6) announced that its subsidiary, ICICI Prudential Asset Management Company Ltd (ICICI AMC), has set the price band for its initial public offering at Rs.2,061 to Rs.2,165 per equity share. Each equity share carries a face value of Rs.1. ICICI AMC has also informed that the minimum bid lot for the IPO will be 6 equity shares, with bids allowed in multiples of 6 shares thereafter. The company's maiden public offering will conclude on December 16, and bidding for anchor investors will take place on December 11, according to the red herring prospectus. The issue is an entirely an offer for sale (OFS) of 4.89 crore equity shares by promoter -- UK-based Prudential Corporation Holdings, with no fresh issue component.

* Global private equity firm Advent International’s talks to acquire US giant Whirlpool’s India unit for up to $1 billion have collapsed due to disagreements over valuation, four people familiar with the matter told Reuters. Advent had emerged as the frontrunner to acquire a 31% stake in Whirlpool of India from its Michigan-based parent, Whirlpool Corp, which would have triggered a mandatory open offer to acquire a majority stake, the sources said.

* Cochin Shipyard (CSL) has finalised shipbuilding contracts with Denmark-based Svitzer to construct four fully electric TRAnsverse tugs, with options for four more. The order is classified as “Significant” under CSL’s order-value criteria. Cochin Shipyard said it has signed shipbuilding contracts with Svitzer, Denmark, for the construction of four 26-metre fully electric TRAnsverse 2600E tugs. The agreement, concluded on December 5, formalises the Letter of Intent the companies signed on October 31, 2025.

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