Markets Rally After RBI Rate Cut | Nifty, Bank Nifty Reclaim Key Levels

Nifty 26,186.45 ▲ +0.59%
Sensex 85,712.37 ▲ +0.52%
Bank Nifty 59,777.20 ▲ +0.82%

The Market finally found its footing today after the RBI delivered a 25 BPS rate cut: a move that lifted Nifty, Bank Nifty and Sensex above their key resistance areas. Though, Market breadth leaned negative, with Mid and Small-cap pockets struggling. Nearly 40 Nifty50 names closed in the green, led by Shriram Finance, SBI, and Bajaj Finance.

From here, As the Market approaches the recent ATH, the key test lies at the supports below, if they slip, momentum may fade. For now, the bias stays positive with IT leading and Financials firming up.

IT turned into the Market’s anchor this week and logged its 3rd straight day of gains, helped by HCLTech and Mphasis. In fact, 5 of the 6 Top Nifty performers this week came from the IT pack: Wipro, HCLTech, Infosys, Tech Mahindra, and TCS.

In Midcaps,Kaynes Technology tanked 12.55% after concerns over inconsistent disclosures. On the flip side, M&M Financial, Patanjali Foods, Indus Towers, and SBI Card turned into surprise outperformers.

ITC Hotels dipped on a massive block deal, IndiGo pared losses after DGCA eased FDTL norms.

SHRIRAMFIN ▲ +3.23%

SBIN ▲ +2.47%

BAJAJFINSV ▲ +2.31%

HINDUNILVR ▼ -5.02%

INDIGO ▼ -1.21%

ETERNAL ▼ -1.13%

Put writers are strongly guarding 26,100 (64.3L) and 26,000 (73.83L), while call writing was relatively subdued with additions seen at 26,400 (37.06L). The PCR-OI is at 1.2.

What does this mean? Traders expect the downside to stay protected and the index to remain supported. Resistance may emerge near 26,400, but the overall tone leans bullish.

• RBI cuts repo rate to 5.25% in its MPC policy, marking a 125 bps easing since February 2025.

• RBI raises FY26 GDP growth forecast to 7.3% from 6.8%.

• RBI to inject liquidity via ₹1 trillion OMO purchases and a $5 billion USD/INR buy-sell swap in December.

• RBI lowers FY26 inflation estimate to 2%.

• IFC invested $50 million in GFCL EV for India’s first integrated battery materials facility.

• Delta Corp promoter acquires 14 lakh shares at ₹68.46 apiece via block deals.

• ITC Hotels sees block deals worth ₹3,856 crore.

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Spotted: Broadening wedge

Structure: Appears when price makes wider swings but keeps hitting the same horizontal resistance, showing expanding volatility.

Validation: A clean break above that resistance, ideally with volume backing the move.

Trading Insight: Once the breakout hits, the pent-up volatility from the expanding swings often points to a powerful follow-through move.

That’s a wrap for today’s action-packed session! We’ll be back in your inbox on December 08, 2025, with more sharp insights, fresh trends, and signals from the markets.