Stock Market Update: Sensex and Nifty 50 Likely to See Weak Start on December 9 Amid Global Uncertainty

Indian equities are expected to begin Tuesday’s session lower ahead of the upcoming US Federal Reserve policy announcement. Early cues from GIFT Nifty point to a subdued opening, hovering around 25,956, nearly 108 points below Monday’s Nifty futures close.

The previous trading session saw a sharp sell-off across sectors, pulling the benchmarks lower. The Sensex declined 609.68 points to close at 85,102.69, while the Nifty 50 retreated 225.90 points to close at 25,960.55.

Sensex Outlook

The Sensex formed a strong bearish candle and slipped beneath its 20-day Simple Moving Average, indicating that the near-term sentiment remains pressured. As long as the index stays below the 85,400 zone, weakness will persist.

The immediate support levels are at 84,800, and in case of further selling, the index may drop to 84,500. On the other hand, a climb over 85,400 could lead to a recovery in the 85,700-85,800 range. 

The area of 85,500-85,600 remains a strong resistance as noted by considerable call open interest.

Nifty 50 Outlook

Nifty 50 also formed a bearish candle signaling selling pressure. The index has also fallen below its 21-day moving average near 26,000. 

A break below 25,890 might accelerate the fall to 25,500-25,300. The 26,200-26,325 is likely to be a strong resistance area, with any upward movement probably leading to profit booking.

Heavy Call OI around the 26,200-26,300 levels indicates major resistance zones, and at the same time, the drop in Put OI below 26,000 shows reduced conviction in downside protection.

Monday’s session witnessed more than Rs. 13 crore of fresh Call writing, implying that traders are aggressively creating short positions at higher levels. 

Bank Nifty Outlook

The Bank Nifty closed Monday at 59,238.55, losing 538 points. This came after it formed consecutive bearish candles. The crucial level of 59,000-58,900 corresponds with earlier swing lows and will possibly serve as the first support.

If the index goes below this area, it could go further down to 58,700 and 58,500.

On the upside, the 59,400-59,500 levels act as the resistance, with repeated rejections in this region reinforcing a near-term bearish tone.

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Sectoral View

Sectorally, all the indices closed in red, with Nifty Realty down 3.5% and Nifty PSU Bank slipping 2.8% emerging as the top losers, while Nifty IT index showed relative resilience, posting a marginal loss of 0.3%.