Market Closing View for 10th Dec by Ponmudi R, CEO, Enrich Money

Indian equity markets closed on a cautious note today, extending losses for the third consecutive session, as benchmark indices remained locked in a tight consolidation band amid persistent overhead resistance and rising global macro uncertainty. The rise in U.S. bond yields ahead of the Federal Reserve’s policy decision, along with mounting currency pressures, reinforced a risk-off mood, prompting traders to pare exposure and adopt a more defensive stance, with small- and mid-cap counters bearing the brunt of the selling.

Nifty 50 opened on a positive footing but quickly ran into selling pressure near the 25,950 resistance zone. The index then drifted into a pattern of lower highs and lower lows, testing the 25,735 intraday low, almost identical to the previous session’s bottom. Once again, the 50-day EMA near 25,729 acted as a critical demand zone, attracting defensive buying interest. However, despite this support, the index failed to generate any meaningful recovery and ended the session on a weak note.

Structurally, Nifty continues to face strong supply in the 25,940–26,050 zone, keeping the broader setup range-bound to mildly bullish. A decisive breakout above 26,000 remains essential to revive upside momentum. On the downside, a sustained break below 25,700 could expose the index to 25,600–25,500, with volatility expected to intensify near these support clusters. 

Bank Nifty also ended marginally lower, indicating a pause in the prevailing uptrend rather than a trend reversal. The index opened near 59,280, moved up to 59,440, but later slipped to an intraday low of 58,850 before closing around 58,990, down nearly 0.4%. The chart formed a small bearish-indecision candle just below the critical 59,400–59,500 supply zone, highlighting hesitation at higher levels. Despite today’s muted performance, Bank Nifty continues to trade comfortably above its 50-day and 200-day moving averages, keeping the broader trend constructive.  

On the fundamental front, Indian equities remain in a healthy consolidation phase. Domestic growth visibility is robust, supported by resilient corporate earnings, improving nominal GDP trends, and sustained fiscal and monetary measures that continue to bolster consumption and capex. However, elevated valuations in the broader market are prompting selective profit-taking, particularly in small-caps, while institutional flows remain skewed toward stable large-cap financials and defensives.
Ponmudi R, CEO, Enrich Money- https://enrichmoney.in

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