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Below the Quote on market wrap 5th December 2025 from Mr. Ajit Mishra - SVP, Research, Religare Broking Ltd 

Markets witnessed a volatile session on Friday but still managed to end higher by over half a percent. The sentiment was cautious in the early hours; however, strength in heavyweight stocks across sectors improved the tone as the day progressed. As a result, the Nifty closed near the day’s high at 26,186.45, up 0.59%. Sectorally, most indices contributed to the upmove, with banking, financials, and IT leading the gains. The broader markets showed a mixed trend, with the Midcap index rising 0.45% while the Smallcap index declined by more than 0.5%.

The RBI Monetary Policy Committee’s outcome served as the key catalyst for the rebound. The committee unanimously cut the repo rate by 25 bps to 5.25%, maintained a neutral stance, raised the FY26 GDP forecast to 7.3%, and lowered the CPI inflation projection to 2%. This announcement triggered fresh buying in rate-sensitive financials and NBFCs, helping offset the impact of mixed global cues.

Technically, Nifty has bounced from the crucial support zone defined by the 20-DEMA, which also aligns with the trendline support of the rising channel on the daily chart around the 25,900–26,000 area. This reinforces the positive structure, and we expect the ongoing uptrend to continue, with the 26,300–26,500 zone as the next potential target range. However, given the persistent volatility and frequent sectoral rotation, we continue to advise a selective approach to stock picking along with prudent risk management.

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