Indian stock markets are set for a quiet start on December 8, 2025, as global cues send mixed signals and investors watch key economic data. The Nifty 50 and Sensex may open flat, with Gift Nifty trends pointing to a slight dip, amid hopes for rate cuts and ongoing volatility from recent RBI moves.
Market Overview and Recent Performance
The Indian stock market showed strength last week despite some ups and downs. On Friday, the Sensex jumped 447 points to close at 85,712, while the Nifty 50 rose 153 points to end at 26,186. This came after the Reserve Bank of India kept rates steady but hinted at possible easing soon.
Traders saw buying in banking and finance stocks, which helped lift the indices. However, the week ended with Nifty down 0.08 percent overall, snapping a three-week gain streak. Experts point to global factors like U.S. Fed decisions and local events such as the rupee hitting 90 levels against the dollar as big influences.
Volatility remains a concern, with the India VIX index hovering around 14. Investors are also tracking India-Russia trade talks aiming for 100 billion dollars, which could boost certain sectors.
Nifty 50 Outlook for December 8
Analysts expect Nifty 50 to trade in a tight range today. The index formed a small bearish candle with a long lower shadow on weekly charts, showing buyers stepping in at dips.
Support levels sit at 26,000 to 26,100, where heavy put options provide a safety net. Resistance is around 26,300 to 26,400, and a break above could push it toward 26,500 or higher.
If Nifty holds above 26,120, the positive trend might continue. But a drop below 26,000 could lead to tests at 25,900 or lower, based on open interest data.
Traders should watch for breakout signals early in the session. The put-call ratio near 0.80 suggests a bullish lean, especially with easing monetary policies in play.
- Key support: 26,000 and 26,100
- Immediate resistance: 26,300
- Potential upside target: 26,500 if momentum builds
Sensex Forecast and Key Levels
Sensex looks poised for a reversal, trading above its 20-day moving average. On daily charts, it shows a promising pattern, with support at 85,000 to 85,200.
A move above 85,900 could drive it to 86,500, hitting new highs. But if it slips below 84,700, sellers might take control, pulling it down to 84,000.
Heavy call open interest at 86,000 to 86,200 acts as a barrier. Put options at 85,000 strengthen the floor.
| Level Type | Sensex Value | Implication |
|---|---|---|
| Support 1 | 85,000 | Strong base with high put OI |
| Support 2 | 84,700 | Potential shift to bearish if broken |
| Resistance 1 | 85,900 | Breakout could lead to gains |
| Resistance 2 | 86,200 | Path to record highs |
This setup favors bulls as long as key supports hold.
Factors Influencing Today’s Trade
Global markets offer mixed hints. Asian indices are flat, while U.S. stocks ended mixed last week amid Fed rate cut talks. Oil prices steady around 70 dollars per barrel add to energy sector watch.
Domestically, RBI’s recent policy and a weakening rupee at 90 levels raise inflation worries but also export hopes. Upcoming U.S. Fed meeting this week could sway sentiment.
Sector-wise, banking and IT may lead if positives emerge. Auto and realty stocks could face pressure from festive season slowdowns.
Investors eye Q2 GDP data, which beat expectations at 8.2 percent, fueling optimism. Yet, geopolitical tensions, like India-Russia trade pushes, add uncertainty.
Expert Views and Predictions
Market watchers remain cautiously upbeat. One analyst notes that sustained moves above 26,400 for Nifty could target 27,000 by year-end.
Another highlights strong downside protection from put options, signaling limited falls. Positional traders are advised to buy on dips near supports.
For longer term, expectations lean toward moderate growth, with Nifty possibly doubling from 2020 levels by 2026 at 12 percent annual gains.
Social media buzz reflects similar views, with many predicting volatility but overall bullish bias into 2026.
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