The Nifty 50 index faced significant selling pressure, erasing its previous day’s gains in reaction to Federal Reserve Chair Jerome Powell’s indication of no interest rate cuts in the upcoming December policy meeting. This downturn resulted in the Nifty closing below the critical 26,000 mark at 25,878, down 176 points or 0.68 percent. The index’s failure to maintain this psychological threshold raises concerns about its ability to sustain upward momentum, with immediate support now positioned at 25,800–25,700. If the Nifty breaks below this support zone, it could further decline towards 25,500, a significant support level.

Technical indicators reveal a cautious market sentiment. The Relative Strength Index (RSI) stands at 64.14, while the Stochastic RSI has indicated a bearish crossover, pointing to potential market weakness. Despite this, the Nifty remains above all major moving averages, which bodes well for the longer-term outlook. According to Rupak De, a Senior Technical Analyst, if the Nifty remains below 25,900–25,950, it could test lower levels, but a decisive move above 25,950 might strengthen bullish sentiment. Weekly options data highlights 26,000 as a key resistance level, with maximum open interest concentrated around this strike.

In parallel, the Bank Nifty also experienced a downturn, closing at 58,031, down 354 points or 0.61 percent, reflecting similar profit-booking activities. The index formed a bearish candle pattern, signaling negative bias under selling pressure. Hrishikesh Yedve, AVP of Technical and Derivative Research, noted that the major support for the Bank Nifty lies near 57,630, with immediate resistance at 58,580. Should the index maintain its position above 57,630, it is expected to consolidate within this range. However, a decisive breakout above 58,580 could target the 59,000 mark, providing a potential upside for investors.