Market Closing View for 1st Dec by Ponmudi R, CEO, Enrich Money

Nifty 50 ended today’s session marginally lower near 26,170, extending its tight consolidation just below the record high zone. Despite intraday attempts to regain higher territory, the index faced consistent supply near the 26,250–26,300 resistance band. Structurally, the trend remains positive as long as 26,000–26,050 holds on a closing basis. A decisive breakout above 26,300 is still required to unlock the next leg of upside toward 26,450–26,600. The RSI at 62 reflects neutral momentum, clearly indicating that the market is not yet in an overbought zone. Sector-wise action remained mixed, with relative strength in auto and pharma, while oil & gas and telecom continued to lag.

Nifty 50 OI Insights:Call OI continues to dominate above 26,300, confirming strong overhead resistance, while sustained Put writing near 26,000 reinforces this zone as a critical short-term base. OI change data shows selective Call unwinding at higher strikes, but not enough yet to confirm a clean breakout—keeping the near-term setup range-bound to mildly bullish.

Bank Nifty closed near 59,680, slipping modestly after rejecting the 60,100–60,300 supply zone. Price continues to respect the rising trendline structure. As long as 59,250–59,000 holds, the broader structure remains intact. A sustainable close above 60,300 will be required to activate the next trending phase toward 61,000+.
Sensex kicked off December with a fresh record high near 86,100 in early trade, but the early surge faded as profit-taking and caution around global cues pulled the index back to a flat close near 85,550. Buyers consistently defended the 85,500 zone through the session, reinforcing it as a key short-term demand pocket, while selling pressure resurfaced near the 86,000 band. As long as 85,000 holds, the structure continues to favour a buy-on-dips approach, with scope for a renewed attempt at 86,000 and an extension toward 86,500–86,600 on follow-through strength. A decisive break below 85,000, however, may signal short-term fatigue and open room for a corrective phase toward 84,500–84,300.

Indian markets spent the day balancing powerful domestic tailwinds with cautious global undercurrents. The key support for sentiment remains India’s Q2 FY25 GDP growth at 8.2%, the fastest in nearly six quarters, reinforcing India’s position as the standout large economy. This has shifted the policy debate toward how long the RBI can remain growth-friendly in the December meeting rather than whether it needs to tighten.
On the flow front, FII selling continued, though partially offset by steady DII buying, which helped absorb intraday declines but also kept upside capped. Sector leadership remained concentrated in banks, broader financials and metals, reflecting confidence in the domestic growth and capex cycle, even as speculative pockets witnessed profit-booking.

Market View: The market is clearly in a pause-and-build phase at lifetime highs. This is consolidation, not distribution. Directional expansion will only come with a clean breakout above the stated resistance zones. Until then, traders should expect range-bound volatility with stock-specific opportunities, while positional investors should continue to hold quality leaders above key supports.

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