Market Closing View for 3rd Dec by Ponmudi R, CEO, Enrich Money

Nifty 50 slipped below the psychological 26,000 mark today and remained confined within a tight consolidation range of 25,875–25,950. Early selling pressure pulled the index lower, but steady buying interest near the lower support zone restricted further downside. In the final hour, Nifty once again attempted to reclaim 26,000, but persistent supply at this level capped the recovery, resulting in a close below this key resistance. The index has now logged five consecutive lower closes, indicating short-term weakness. The formation of lower highs and lower lows continues to reflect selling pressure on intraday pullbacks. For any meaningful recovery and a potential move toward the 26,300 zone, Nifty must decisively reclaim and sustain above 26,100. Until then, the market remains in a corrective and consolidation phase.

Bank Nifty traded in a narrow, well-defined range and formed a hammer-type recovery candle, finding demand near 58,900–59,000 while facing stiff resistance in the 59,350–59,400 zone. Repeated failures above 59,500 confirmed continued profit-booking in heavyweight private banks, limiting upside traction. At the same time, strong buying near 59,000 continues to protect the downside, keeping the index in a sideways consolidation phase rather than a trend breakdown. With momentum cooling from the 60,000–60,100 zone, Bank Nifty is now trading in the lower half of its short-term range. As long as 58,900–58,800 holds, pullback rallies toward 59,500–59,800 remain possible. A decisive close below this support belt would open the door for a deeper correction toward 58,500 and below, calling for strict risk discipline and selective exposure.

Today’s session was driven largely by macro cues and institutional positioning, with markets remaining cautious ahead of the RBI policy decision and key global triggers. FIIs continued to pare exposure in banks and BFSI, while DIIs selectively supported autos and consumption-linked stocks. Easing U.S. bond yields offered mild support, but a weak rupee, crude-related concerns, and global growth uncertainty kept sentiment restrained. Sector performance remained mixed BFSI stayed under pressure, while autos, IT and consumption stocks showed relative strength. Overall, the market remained in a clear wait-and-watch mode, consolidating near record zones with policy clarity awaited for the next directional move.

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