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Below the Market Commentary (closing) for 05th December 2025 by Bajaj Broking

Market Closing Commentary

Indian equity indices closed weak on December 8th, with the Nifty slipping below the 26,000 marks. Investors stayed cautious ahead of this week’s Fed policy outcome. Even with strong domestic growth data and the RBI’s recent rate cut, near-term sentiment remains weighed down by global rate worries, persistent FII selling, and continued pressure on the rupee. Volatility increased as Japanese bond yields climbed to multi-year highs, heightening worries about a possible unwinding of the yen carry trade. At the close, the Sensex fell 609.68 points (0.71%) to 85,102.69, while the Nifty declined 225.90 points (0.86%) to settle at 25,960.55. The Midcap index slipped 1.8%,while the small-cap index fell 2.6%. All the sectoral indices ended in the red with realty down nearly 3.5%, while media, PSU Bank, telecom down more than 2.5% each.

Nifty Outlook

The index formed a sizable bear candle with a lower high and a lower low signaling lack of follow through to Friday’s strong pullback as the index closed below the 26,000 levels. Going ahead, a follow through weakness below Monday’s low (25890) will signal extension of the decline towards 25750-25700 levels. While holding above the Monday’s low will signal consolidation in the range of 26,200-25,900 in the coming sessions ahead of the US FOMC rate decision. Key support lies at 25,900–25,700, which aligns with the bullish gap from November 12, the 50-day EMA, and the lower band of the rising channel.

Bank Nifty Outlook

Bank Nifty has formed a bearish candlestick pattern with a long lower shadow signaling lack of follow through to previous session strong pullback post RBI monetary policy outcome. Index on expected lines is seen consolidating and forming a base in the range of 58500-60100. We expect the index to extend the current consolidation in the coming sessions. Only a follow through strength above the last week high (60114) will open further upside towards 60,400 and then towards 61,000 levels in the coming weeks. Key short-term support is placed at 58,200-58,600 levels being the confluence of the recent low and the major breakout area. Holding above the support area will keep the short-term bias positive.

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