GIFT Nifty 🇮🇳: (-42, 26094)
Market Recap:
In yesterday’s trade, Nifty ended below the psychological 26000 mark and most importantly, the drubbing continued for the 4th straight day.
The market breadth (12:38) was clearly in favour of the Bears.
The positive takeaway however was that Bank Nifty rebounded from lower levels as the expectations remain elevated for a strong year-end finish.
The 2-Big Questions:
Will Nifty’s bullish traders have to brace for another drop?
Will the FPI come back strongly?
What Technicals Tells Us On Nifty:
Technically, Nifty’s near-term trend stays vulnerable as long as it trades below its all-time high of 26,326, with sellers defending every bounce.
However, there’s a strong chance that bulls will regroup near the major support at 25,703 and attempt to flip momentum decisively, reopening the path toward fresh record highs.
Bulls Kneel and Pray as Bears Dominate — but Nifty’s 25,703 Support Still Holds the Key.
The Biggest Headwinds:
Our call of the day suggests Nifty bulls are unlikely to plot a meaningful reversal on backdrop of 3-negative catalysts:
1) Manufacturing PMI Slumps:
India’s PMI dropped to a nine-month low at 56.6, indicating cooling domestic momentum and softer export demand — further dampening sentiment.
2) Rupee Weakness Deepens:
The INR hit a fresh lifetime low of ₹90.30 per USD, pressured by persistent dollar demand from corporates, importers, and foreign portfolio investors.
3) Relentless FII Selling:
Year-to-date FII outflows have swollen to ₹1,40,490 crore, reinforcing the bearish undertone.
The Key Catalysts Ahead:
1) A key RBI policy decision and US payrolls on December 5 — potentially a major volatility trigger.
2) Geopolitics enters the frame with Putin’s India visit (Dec 4–5),
3) Mid-month attention shifts to global central banks, with the Fed meeting on December 10.
The 2-Big Positive Catalysts:
1) Dual Rate-Cut Hopes from both the U.S. Fed and the RBI .
2) U.S.–India Trade Deal Optimism
Bottom-line: An up-and-down session is quite likely as overbought technical conditions, FIIs selling + Weaking INR + no new triggers = bears back in action.
Long Story Short: Nifty’s rally is at a crossroads with stronger headwinds for now — but a dovish RBI could still pull a rabbit out of the hat and propel the index back toward its all-time high of 26,325.80.
For now, the bears appear to have the marginal advantage.
Our call of the day suggests Nifty bulls are unlikely to plot a meaningful reversal on backdrop of 3-negative catalysts:
STOCKS IN SPOTLIGHT:
1) Biocon (+2.88%) gained after Biocon Biologics, a subsidiary of Biocon, has inked a settlement agreement with Amgen Inc., paving the way for the global rollout of its Denosumab biosimilars.
The deal enables the company to commercialize Vevzuo and Evfraxy across Europe starting December 2, 2025, while access to the rest of the world also opens up. Other terms of the settlement remain confidential.
2) Vodafone Idea (+4.34%, 10.57) jumps out of the roof after reports suggest Telecom Minister Jyotiraditya Scindia indicated that the Centre may finalise the company’s AGR relief recommendations soon.
3) Emmvee Photovoltaic (+1.98%) stayed in the spotlight, extending its momentum after hitting the upper circuit in yesterday’s trade.
The catalyst: The company posted a stellar Q2 FY26 consolidated net profit of ₹237.86 crore, a jump of nearly 7x (577%) YoY versus ₹35.12 crore last year. On a sequential basis, profit was up 27% QoQ from ₹187.67 crore in Q1 FY26.
4) The Nifty PSU Bank index was down nearly 3.05% to 8,255
The shares of PSU banks dropped after government clarified that it has no plans to raise foreign direct investment (FDI) limit in these lenders from 20 percent to 49 percent.
(SBI (-1.71%), Indian Bank (-5.52%), PNB (-431%), other PSU bank stocks after FinMin clarifies no proposal to hike FDI limit. This falls comes after the stocks recorded sharp gains following earlier reports.
(Source: Business Standard, Moneycontrol, Economictimes, Capitalmarket)
Now, here is the preferred trade on Nifty and Bank Nifty:
Nifty (25986): Sell between 26050-26100 zone. Stop 26521. Targets 25901/25703. Aggressive targets at 25300-25500 zone.
Bank Nifty (59348): Sell between 59500-59700 zone. Stop at 60701. Targets 58900/58300. Aggressive targets at 57157-57500 zone.
Our chart of the day is bearish on COAL INDIA, MAZGAON DOCK, and TITAN on any early excessive intraday strength with an interweek/Intermonth perspective.
The 1 Stock to Buy Right Now:
Buy BIOCON
Entry Price: 411
Target: 467
Stop Loss: 393
Holding Period: 0-180 days
Rationale: Momentum Play
Risk /Reward : Rs. 18/Rs. 56 ; (4.38/13.63)
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