Market Indices – Weekly Performance

Market Indices – Weekly Performance

• Sensex: 85,712.37 (up 0.01%)
• Nifty 50: 26,186.45 (down 0.06%)
• Nifty Bank: 59,777.20 (up 0.82%)
• Nifty Smallcap 100: 17,507.25 (down 1.80%)
• Nifty Midcap 100: 60,594.60 (down 0.73%)

Market weekly performance snapshot

Nifty 50 closed the week at 26,186, posting a minor 0.06% decline. Despite this, it has shown resilience, holding comfortably above its key support levels. The index has been in a steady bullish trend, forming a green candle despite the slight pullback.

The price remains above the 9-week EMA (~25,675) and 12-week SMA (~25,600), signaling the broader uptrend remains intact.

Bollinger Bands indicate the index is near the upper band (~26,429), which shows strong momentum but also hints at slightly overbought conditions. The midline around 25,178 remains the first support level, while 25,000–24,900 provides additional support.

A sustained close above 26,300–26,430 may trigger further upside, while a breakdown below 25,000 would signal possible trend fatigue.

Market pulse: key events of the week

• Bulls Maintain Control as Nifty Extends Its Run
  Benchmark indices pushed higher for a second consecutive week, supported by strong domestic flows and rotational buying across largecaps. Despite global uncertainty, Indian equities continued to display impressive resilience, reinforcing confidence in the ongoing bullish trend.
• Rupee Weakness Persists; RBI Seen Active
  The rupee continued to trade near weaker levels amid global risk caution and elevated crude prices. RBI interventions were seen as stabilizing the currency, but the pressure on the rupee could affect import-heavy sectors.
• RBI Policy Announcement
  On December 5th, RBI Governor Sanjay Malhotra announced that the repo rate would remain unchanged at 5.75%. The RBI emphasized its ongoing focus on inflation control and supporting growth. While no rate cut was announced, the central bank's stance was seen as supportive for market liquidity. The decision is expected to have a stabilizing effect on the markets, keeping the bullish momentum intact.

Market pulse: key events of the week

• Midcaps & Smallcaps Show Mixed Tone
  While frontline indices strengthened, midcap and smallcap segments showed some fatigue. Selective profit-booking emerged after recent strong runs. The broader market participation remained healthy but less aggressive compared to previous weeks.
• Bank Nifty Holds Steady Above Key Levels
  Bank Nifty remained firm throughout the week and stayed around the 59,000 zone. Stable credit growth and improving earnings visibility for major banks kept investor interest intact. A breakout above 59,200–59,500 could trigger further upside in the financial sector.

Market outlook

The outlook for the upcoming week remains cautiously bullish. Nifty continues to trade near record highs while maintaining strong support zones.

As long as Nifty holds above 25,100–25,000, the broader trend remains buy-on-dips, with resistance seen around 26,300–26,450, followed by 26,700.

However, persistent rupee weakness, rising global yields, and intermittent FPI outflows could introduce short-term volatility. Midcaps and smallcaps continue to offer opportunities but may require selective stock picking due to overvaluation in certain sectors.

Overall, the outlook remains constructive with expected leadership from large-cap financials, autos, FMCG, and selective midcaps, though traders should remain cautious near key resistance zones.