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Market Update

Nifty : 26,205.30 +320.50 (+1.24%)

Sensex : 85,609.51 +1022.50 (+1.21%)

* The bulls returned to Dalal Street with strong, broad-based buying at the start of the December series, driving solid gains across the market. The Sensex rallied over 1,000 points, and the Nifty climbed more than 1%, ending just under 100 points—or 0.4%—below its record high. Market sentiment was buoyed by expectations of a US Federal Reserve rate cut, along with optimism that the RBI may also reduce rates in its upcoming policy meeting. Additional positive triggers included growing hopes of a Russia–Ukraine peace agreement easing geopolitical tensions, Brent crude falling to a one-month low near $62 per barrel, and FIIs turning net buyers with inflows of around Rs.1,000 crore yesterday.

* The Sensex closed with a strong gain of 1,023 points, or 1.20%, at 85,609, while the Nifty 50 ended at 26,205, up 321 points, or 1.25%. Global markets also posted robust gains. Overnight, the US Dow Jones jumped more than 600 points, while Japan and Taiwan markets surged up to 2.8% as weak US consumer data strengthened expectations of a Fed rate cut in the December 10 policy meeting. Supporting this view, the US 10-year bond yield dropped to a one-month low of 4%, and the US Dollar Index slipped below 100.

* Across sectors, metal, realty, IT, mid-cap, Bank Nifty, and pharma indices advanced between 1–2%. Metal stocks were the top performers, driven by optimism that a potential US–Ukraine peace deal could boost global demand. The Nifty Metal index rose 2%, with NMDC, JSW Steel, SAIL, and Hindustan Copper gaining 2–4%. The Nifty IT index climbed 1.5% on expectations of a US Fed rate cut, while the Nifty Auto index gained 1% on hopes of an RBI rate reduction and anticipation of strong November sales, supported by GST reforms and lower tax rates.

Technical Outlook:

* Nifty index opened on a negative note around the 25850 zone, but bulls took control from the very first tick. Sustained buying emerged throughout the session as the index rallied more than 350 points from the day’s low, reflecting strong demand at lower levels. After witnessing a corrective phase over the last three sessions, today’s sharp rebound helped the bulls recover all those losses in a single session.

* The index also surpassed key hurdles smoothly and closed near the day’s high around the 26200 zone, showcasing the strength of the intraday momentum. The December series has begun on a strong footing, with Nifty negating the recent sequence of lower lows on the daily chart and forming a bullish Marubozu candle. Now it has to hold above 26100 zones for a momentum to extend towards 26277 and then 26400 zones while supports are shifting higher to 26100 and then 26000.

Derivative Outlook:

* Nifty future closed positive with gains of 1.28% at 26390 levels. Positive setup seen in MCX, SAIL, LTF, CDSL, Jiofin, Vedanta, PNB Housing, UNO Minda, Max Financial, Indigo, AB Capital, GMR Airport, Techm, Muthoot fin and Coforge while weakness in Adani Enterprise, PI Industries, Marico, SRF and Dalmia Bharat.

* On option front, Maximum Call OI is at 26500 then 26200 strike while Maximum Put OI is at 26100 then 26200 strike. Call writing is seen at 26500 then 26700 strike while Put writing is seen at 26000 then 26100 strike. Option data suggests a broader trading range in between 25700 to 26600 zones while an immediate range between 26000 to 26400 levels.

Global Market Update

* Asian Market - Asian stocks rose for a third day, buoyed by heightened bets of a Federal Reserve rate cut next month. Japan Index gained 1.8%. Both South Korea and Australia Index surged 1.7% and 0.8% respectively.

* European Market - European stocks followed global markets higher as traders raised bets on a December rate cut by the Federal Reserve. UK stocks will be in focus today as UK Chancellor of the Exchequer Rachel Reeves is set to announce a long-awaited budget. UK, Germany and France Index gained up to 0.2%.

* US Data - Initial Jobless Claims and Mortgage Application.

* Commodity - Oil steadied after closing at a one-month low on signs a Ukrainian peace deal is getting closer, a development that could herald the removal of curbs on Russian crude just as a global glut looms. Brent was near $63 a barrel.

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