Sensex Soars 427 Points to 84,818; Nifty Rebounds 141 Points Post Fed Rate Cut

GIFT Nifty indicates a positive opening for Indian markets, currently trading close to its all-time high at 26,134, up 108 points from the last Nifty futures close. This upward trend follows the domestic markets' recovery on December 11, after the US Federal Reserve decided to lower rates by 25 basis points.

On Thursday, the Sensex jumped 427 points to close at 84,818.13, gaining 0.51%, while the Nifty 50 advanced 141 points to end at 25,898.55, up 0.55%, marking a reversal of its three-session losing streak. 

The rebound was broad-based, with autos, IT, pharma, telecom, metals, realty, and both PSU and private banks logging gains between 0.5% and 1%. Midcap and small-cap indices also gained 0.9% and 0.8%, respectively.

Market Setup 

The dovish tone of the Fed has improved the overall sentiment, but the constant selling of foreign funds along with the uncertainty over the ongoing India-US trade talks may keep the market volatile.

For the tenth session in a row, Foreign Institutional Investors (FIIs) were net sellers, selling shares worth Rs. 1,651 crore, while Domestic Institutional Investors (DIIs) supported the market with Rs. 3,752 crore worth of inflows.

Traders will keep an eye on global and domestic data releases, including US jobless claims, India’s CPI numbers, and the UK’s GDP report.

Sensex Outlook

Sensex formed a bullish candle at yesterday’s closing. The 84,400 emerges as the key support level. If the Sensex holds its ground above 84,400, then it would probably try to inch its way up to the 85,500 area. 

However, if the index closes under 84,400, it might draw in selling pressure, thereby raising the odds of a fall to 84,000.

Nifty 50 Outlook

Bajaj Broking Research noted that the Nifty 50 on December 11 formed a bullish candle with a long lower shadow, a sign of strong buying in the 25,700 area.

This area coincides with the 50-day EMA and an important retracement level of the previous up move.

According to the analysts, the index will likely trade in the range of 25,700 to 26,200. Immediate resistance is seen at 25,950-26,000, and a sustained move above 26,000 could open up the way for an advance to 26,200.

On the other hand, slipping below 25,700 would weaken the near-term structure and possibly lead to more selling pressure.

Bank Nifty Outlook

Bank Nifty continued to consolidate around its 20-day EMA, forming a base between 58,500 and 60,100. Key supports are placed at 58,200-58,600, while resistance emerges near 59,500. 

The index’s major challenge remains the recent all-time high of 60,100. Analysts expect the banking index to stay rangebound in the short term.

Overall, while near-term caution persists, improving global sentiment and supportive domestic inflows may help markets maintain stability heading into the session.

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