Technical View: Nifty, Bank Nifty & Sensex Trade Setup and Key levels to watch for 10th December

The Indian equity markets saw a cautious start, with key indices opening lower amid weak global sentiments. Both the Nifty 50 and the BSE Sensex trended downward throughout the day, closing on a bearish note. Selling pressure from foreign institutional investors, coupled with concerns over tariff threats on India’s rice exports to the US, weighed heavily on market sentiment. The indices showed signs of short-term bearish momentum, reflecting a cautious investor outlook despite some technical support levels holding.

On the sectoral front, consumer durables and PSU stocks emerged as notable gainers, buoyed by select corporate performances and sector-specific optimism. In contrast, the IT, auto, and pharma sectors underperformed, dragging the markets down. Asian markets mirrored this cautious tone with mixed performances across the region, reflecting ongoing uncertainties and diverse economic factors affecting investor confidence.

In this overview, we will analyse the key technical levels and trend directions for Nifty and BSE Sensex to monitor in the upcoming trading sessions. All the charts mentioned below are based on the 15-minute timeframe.

NIFTY 50 Chart & Price Action Analysis

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The Nifty 50 Index opened with a gap-down at 25,867.10 on Tuesday, down by 93.45 points from Monday’s closing of 25,960.55. The index started the session on a bearish note, opening below the 26,000 level and was dragged down further due to uncertainty over the US Fed outcome as well as broad-based selling by the foreign investors. The index was volatile during the morning session, initially declining to its day’s low of 25,728, and started taking support around that level.

It remained within the range of 25,750 and 25,850. In the afternoon session, it continued to trade in a range-bound manner and had its day’s high at 25,923.65. The Index was trading between the range of 25,800 and 25,900. Finally, it had closed on a negative note at 25,839.65, down by 120.9 points, or 0.47%. In the short term, the Index dropped further below the 13- and 20-day EMA, indicating a short-term bearish outlook in the daily time frame.   

The Nifty 50’s nearest resistance levels are at 26,031.35 (R1) and 26,230.10 (R2). On the other hand, the closest support is now at 25,727.9 (S1), and the next one at 25,446.50 (S2), where the index took support previously. 

Trade Setup:

Nifty 50Resistance 226,230.10Resistance 126,031.35Closing Price25,839.65Support 125,727.90Support 225,446.50

NIFTY 50 Momentum Indicators Analysis

RSI (Daily): The Nifty 50’s RSI stood at 47.08, which is below the overbought zone of 70, generally indicating a neutral zone.

Bollinger Bands (Daily): The index is trading in the lower band of the Bollinger Band range below the middle band. Its position in the lower range suggests a bearish sentiment in the short term. Furthermore, in Tuesday’s session, the Index formed an indecision candlestick pattern, which indicates neutral. The index stayed below the 25,900 level on Tuesday’s session and was hovering near the 25,800 level. A sustained move above the middle band signals a bullish sentiment, while a drop back toward the lower band may reinforce bearish sentiment.

Volume Analysis: Tuesday’s trading session had an average volume of 275.98 Mn.  

Derivatives Data: Options open interest (OI) data suggest a strong support zone around 25,750 and 25,800, where put option writing is high, indicating traders expect the index to hold these levels. On the upside, significant call option open interest at 25,850 and 25,900 signals resistance, as sellers are likely to defend these strike prices. The Put/Call Ratio (PCR) stands at 0.67, which is below 1 and indicates a neutral to bullish sentiment with more call activity than put. The presence of a long Buildup indicates traders are aggressively buying new long positions and expect the price to go higher, which is generally considered a bullish signal. This combination implies the market may trade in a range, with strong support near 25,750-25,800 and resistance near 25,850-25,900, until a decisive breakout occurs. 

Bank Nifty Chart & Price Action Analysis

The Bank Nifty Index opened on a gap-down note at 58,918.85, below the 59,000 level, on Tuesday, down by 319.7 points from Monday’s closing of 59,238.55. The index opened on a negative note and fell as low as the 58,878.45 level, hitting its day’s low, and later it recovered from the day’s low and settled above the 59,200 level. During the morning session, the index was trading in the range of 58,850 and 59,350 levels.

In the afternoon session, the index hit its day high near the 59,358.25 level and was trading in the range of 59,150 and 59,360, ending the day below the 59,250 mark. Finally, it had closed on a flat note at 59,222.35, down by -16.20 points or 0.027%. The Relative Strength Index (RSI) stood at 56.67, below the overbought zone of 70 in the daily time frame. In the short term, the Index was above the 20-day EMA but below the 13-day EMA on the daily time frame, indicating a cautious outlook in the near term. 

The nearest resistance is at 59,550 (R1) and 59,865.05 (R2). The higher resistance is at 60,114.30 (R3), which is the all-time high for the index. On the other hand, the closest support is now at 58,750 (S1), and the next support is at 58,175 (S2), where the index has taken support at this level previously. 

Trade Setup:

Bank NiftyResistance 360,114.30Resistance 259,865.05Resistance 159,550.00Closing Price59,222.35Support 158,750.00Support 258,175.00

BSE Sensex Chart & Price Action Analysis

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The BSE Sensex Index also opened on a gap-down note, opening at 84,742.87 on Tuesday, down by 359.82 points from Monday’s closing of 85,102.69. The Sensex index started the session on a negative note below the 84,800 mark and continued to move downwards, similar to Nifty 50 and Bank Nifty and hit its day low near the 84,382.96 level. It later recovered from its day low and hit its day high near the 84,947.89 level.

During the morning session, the index was trading on an overall pessimistic note, in the range of 84,350 and 84,950. In the afternoon session, the index again plunged to 84,666.28 and was trading between 84,550 and 84,900. Finally, it had closed at 84,666.28 on a negative note, down 436.41 points or 0.51%. The Relative Strength Index (RSI) stood at 48.95, below the overbought zone of 70 in the daily time frame. In the short term, the Index was below the 13 and 20-day in the daily time frame and formed a doji candle on Tuesday, indicating a neutral to bearish outlook in the near term.

The index faces immediate resistance at 85,210 (R1) and 85,486.34 (R2). The higher resistance is at 86,805 (R3), a level near its all-time high. On the downside, the nearest support lies at 84,381.62 (S1) and the next one at 84,028.05 (S2).

Trade Setup:

SensexResistance 385,805.00Resistance 285,486.34Resistance 185,210.00Closing Price84,666.28Support 184,381.62Support 284,028.05

Market Recap on December 9th, 2025 

On Tuesday, the Nifty 50 opened lower at 25,867.10, down by -93.45 points from its previous close of 25,960.55. The index hit an intraday low of 25,728 and closed on a bearish note, below the 25,900 level at 25,839.65, down -120.9 points, or -0.47%. The index closed above the 50/100/200-day EMAs, but below the 20-day EMA on the daily chart. The BSE Sensex followed the same trajectory, opening on a negative trend at 84,742.87, down -359.99 points from the previous close of 85,102.69.

It closed at 84,666.28, down -436.41 points, or -0.51%. Both indices showed short-term bearish momentum. RSI values for the Nifty 50 were at 47.08 and the Sensex at 48.95, below the overbought threshold of 70. The broader indices ended on a negative note, mainly due to weak global cues, persistent FIIs selling and tariff threats on India’s rice exports to the US, all leading to market decline on Tuesday.

On Tuesday, the Nifty Consumer Durables index remained the major gainer, up 1.3% or 474.35 points, closing at 36,584.60. Among the gainers, PG Electroplast Ltd was the major gainer, increasing by 5.1%, followed by Bata India Ltd, Amber Enterprises India Ltd and Titan Company Ltd, all gained by up to 3.8%. The Nifty PSU index is also among the highest gainers, increasing 1.3% or 105.2 points, closing at 8,251.30. Bank of India, Canara Bank, Indian Bank and UCO Bank all gained up to 1.8% on Tuesday. The Nifty Smallcap 50 also gained by 1.2%.

The Nifty IT index was the major loser, closing at 38,130.60, shedding -460.10 points or -1.19%. Coforge Ltd was the major laggard, dropping -3.99%, followed by Tech Mahindra Ltd, HCL Technologies Ltd, Wipro Ltd, and TCS fell by up to -1.90%. The Nifty Auto index was also among the major losers, falling -197.55 points or -0.72% to close at 27,399. Among the auto stocks, Hero MotoCorp Ltd fell the most with a -2.69% loss, followed by Uno Minda, Sona BLW Precision, and Mahindra & Mahindra, which fell up to -2.11%. The Nifty Pharma Index also dropped -117.85 or -0.52%, closing at 22,522.      

Asian equity markets closed bearish. Hong Kong’s Hang Seng Index dropped -375.36 points, or -1.48%, to 25,390.00. While Japan’s Nikkei 225 rose by 0.14% or 70.06 points to 50,652.00. China’s Shanghai Composite fell -14.56 points, or -0.37%, to 3,909.52, while South Korea’s KOSPI surged -11.30 points, or -0.27%, closing at 4,143.55. 

India VIX

The India VIX fell to 10.95, down by 0.18 points (1.62%) during Tuesday’s trading session, indicating a slight downtrend in expected market volatility in the daily time frame. However, overall volatility remains low, since the India VIX is generally considered elevated only when it rises above 15.

Given the ongoing volatility and mixed sentiments, it’s advisable to avoid aggressive positions and wait for clear directional moves above resistance or below support. Traders should consider these key support and resistance levels when entering long or short positions following the price break from these critical levels. Additionally, traders can combine moving averages to identify more accurate entry and exit points.

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