Market Closing View for 4th Dec by Ponmudi R, CEO, Enrich Money

Nifty 50 closed above the 26,000 psychological mark with a mild positive undertone, reinforcing the market’s underlying resilience despite intraday volatility. The index witnessed early weakness and once again took strong support near the last two sessions’ low around 25,900, clearly establishing this zone as a critical demand base. A steady recovery in the second half helped Nifty close marginally higher, keeping the broader structure intact. The 26,100–26,300 zone continues to act as a stiff overhead resistance belt, with consistent selling pressure emerging on every rise. As long as Nifty remains below this band, the market is likely to stay in a consolidation phase with a positive bias.

On the downside, 25,900 remains the key short-term support, and only a decisive breakdown below this level could tilt the bias toward a short-term corrective phase. Price action hints at a continuation setup if volumes expand, while the medium-term trend remains bullish. However, near-term momentum indicators clearly suggest controlled, range-bound activity. What to Expect Tomorrow For the next session, markets are expected to remain highly reactive to the RBI policy outcome, rupee movement, and global cues. The ongoing downside pause and sideways consolidation phase indicates that the market is currently absorbing key macro signals before selecting its next directional move. Overall, tomorrow’s trade setup is likely to remain range-driven with a policy-triggered directional bias. Volatility is expected to stay elevated, favouring tactical trading opportunities rather than aggressive positional bets.

Bank Nifty – Closing View Bank Nifty remained subdued and range-bound as selling on intraday rebounds continued to cap the upside. The index failed to sustain early gains and maintained a sequence of lower highs, reflecting persistent pressure from FII outflows and muted participation from heavyweight private banks. Bank Nifty continues to trade below the key supply zone of 59,500–59,600, which remains the major hurdle for any sustainable upside. The near-term bias stays neutral to mildly negative while below this band. Immediate support is placed at the 59,000–58,900 zone, and a decisive break could open the downside toward 58,500–58,100. On the upside, a strong close above 59,200 could trigger short-covering and push Bank Nifty toward 59,500–59,650. RSI remains neutral-to-soft, confirming the lack of strong directional conviction. Traders should stay tactical, focus strictly on support-based trades, and avoid aggressive longs unless Bank Nifty reclaims 59,350 with firm volume confirmation.

Market & Macro Landscape Indian equities traded on a mixed note, with the IT sector outperforming, led by TCS and Tech Mahindra, while broader market participation remained cautious. The rupee weakened further to around 90.15/USD, marking a fresh lifetime low, which continues to complicate the RBI’s rate-cut narrative by amplifying imported inflation risks and limiting intervention flexibility ahead of the policy outcome. On the macro front, Q2 FY26 GDP growth at 8.2%, driven by strong manufacturing and services activity, continues to reinforce India’s structural growth story. Markets broadly expect the RBI to maintain the repo rate at 5.50% with a neutral stance, balancing sub-3% inflation dynamics with expansion momentum. Domestic economic resilience is currently offsetting external risks such as currency volatility and global tariff uncertainty, keeping the near-term upside capped for equities.

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