Market Closing View for 11th Dec by Ponmudi R, CEO, Enrich Money

Market Commentary from Ponmudi R, CEO of Enrich Money, a SEBI – registered online trading and wealth tech firm. Equity markets ended higher on Thursday as the widely expected 25 bps rate cut by the U.S. Federal Reserve lifted investor sentiment. However, the gains were partly capped by a sharp fall in the Indian rupee to a fresh record low, which kept currency-related worries elevated.

Fresh concerns over delays in achieving meaningful progress in the India–U.S. trade negotiations also weighed on risk appetite, limiting broader upside for domestic equities. Weak cues from Asia and a sharp sell-off in U.S. futures added further pressure, after cloud-computing major Oracle plunged over 12% on issuing a softer-than-expected quarterly revenue forecast. Despite these headwinds, the markets managed to close in the green, though the undertone remained cautious.

Both the Nifty 50 and Bank Nifty once again respected their rising channel supports on the daily charts, reinforcing that the broader uptrend remains intact despite recent volatility. After opening with mild caution, Nifty took textbook support at the ascending trendline and the 50-EMA zone near 25,735–25,750, which has now acted as a demand pocket for three consecutive sessions. The index recovered sharply from the intraday low of 25,693 and closed near 25,901, reclaiming the 20-EMA at 25,950, indicating renewed buying interest on every dip.

Structurally, Nifty continues to trade within a well-defined rising channel that has been intact since July. The lower trendline has held strongly, and today’s price action confirms continued defence by buyers at critical support. For upside continuation, a decisive close above 25,950–26,000 remains essential; such a breakout can open the path towards 26,150–26,250, where the upper channel resistance converges with prior swing highs. On the downside, 25,735–25,700 continues to be the make-or-break support, followed by secondary support at 25,600.

The options market displayed a strong Call-side build-up throughout the day, with full-day OI indicating heavy call writing around 25,950–26,000, forming an immediate supply ceiling. Put OI remained steady at 25,800 and 25,700, signalling consistent put writers defending the structure. Cumulative OI stands at 16 Cr Call OI vs 14.76 Cr Put OI, creating a visible tug-of-war zone, but intraday put additions in the second half reflect improving confidence from bulls.

Bank Nifty also mirrored the broader market setup with a clean rebound from the rising channel support and 20-EMA cluster around 58,900–59,000. The index held this zone firmly and closed at 59,198, indicating early signs of rotational buying returning to financials. A sustained move above 59,400–59,500 can accelerate momentum toward 59,900–60,100, while the channel base near 58,900 will remain the key reference level for trend integrity.

Sensex too respected its rising channel support and staged a sharp rebound from the 84,150–84,250 pocket. The index closed at 84,824, forming a bullish hammer candle precisely at the support zone, a classical reversal signal. This strengthens the probability of a move towards 85,000 in the near term. Only a breakout above 86,000 will confirm the next leg of upside and shift momentum decisively in favour of bulls.

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