Nifty Holds Support — Is a Fresh Momentum Wave Ahead?

The Nifty ended last week almost flat, up 0.6% at 26,186. The index started weak due to profit-booking, FII outflows, and a record-low rupee, but sentiment improved after the RBI cut the repo rate by 25 bps to 5.25%.

Adding to the positive tone, India VIX dropped over 11% to 10.315, highlighting a sharp cooling in volatility and a more stable trading environment.

◉ Technical Setup
Nifty has once again respected its strong support zone between 25,900 and 26,000, bouncing firmly from this level. This zone is expected to remain a key cushion for the coming week as well.
On the upside, the index faces a strong resistance around 26,400–26,500, which will be crucial to watch. A breakout above this could unlock further strength.

For now, the market is likely to trade within this range, oscillating between support and resistance until a clear signal emerges.

◉ Key Trigger This Week
US Fed Meeting (Dec 9–10)
Markets expect a 25 bps rate cut, but mixed signals from Fed officials keep uncertainty high.
A hawkish tone could weigh on global sentiment.
A dovish stance would likely support global markets, especially India.

◉ Suggested Strategy
Investors should adopt a balanced and selective approach:
Favour large caps and sectors that stand to benefit from the RBI rate cut, such as financials and autos,
Export and IT stocks may continue to draw support from the weaker rupee.

For traders, buy-on-dips remains the preferred strategy near strong support levels. Focus on stock-specific setups, maintain moderate position sizes, and stay flexible ahead of the crucial FOMC outcome.