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Below the Market Commentary (closing) for 5th December 2025 by Bajaj Broking

Market Closing Commentary

Benchmark indices ended Friday’s (5th December) session on a strong footing, buoyed by the RBI’s monetary policy rate cut, which injected fresh optimism and lifted overall market sentiment. The positive momentum persisted throughout the day, supported by an improved growth outlook and stable global cues. At the close, the Sensex settled at 85,712.37, gaining 447.05 points or 0.52%, while the Nifty ended at 26,186.45, up 152.70 points or 0.59%.

Sectoral performance was broadly positive, with notable strength seen in Nifty PSU Bank, IT, Auto, and Metal indices. However, Media, Pharma, and Consumer Durables emerged as the key laggards, witnessing mild profit-booking.

On the broader market front, the Nifty Midcap 100 moved in line with the benchmark, closing 0.49% higher, whereas the Nifty Small cap 100 came under pressure and ended 0.57% lower, indicating selective participation in the rally.

Nifty Outlook

The index printed a strong bullish candle, marked by a higher high and higher low, indicating a consolidation phase with an upward tilt. Fresh buying interest has emerged in the last two sessions near the lower boundary of the two-month ascending channel. The broader structure for the past two months remains constructive within this rising channel.

We expect the recent 3–4 session pause to offer an opportunity to accumulate quality names gradually, anticipating the next leg of the rally toward 26,500 in the coming week.

Crucial support is placed at 25,900–25,700, coinciding with the bullish gap , the 50-day EMA and the lower trendline of the channel.

Bank Nifty Outlook

Bank Nifty continued to outperform, registering a strong bullish candle following the RBI rate-cut announcement. We anticipate the index to undergo a period of consolidation and build a foundation within the 58,500–60,100 zone in the near term. A decisive move above Monday’s high of 60,114 could pave the way for further gains toward 60,400 and subsequently 61,000 in the coming weeks.

The two-month rally remains well-structured within an upward channel, indicating steady buying interest even at higher levels. Key support rests at 58,300–58,600, aligning with the recent breakout zone and the past two weeks’ lows. Sustaining above this support band should preserve the short-term positive outlook.

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