Indian stock markets are expected to open cautiously on December 3, 2025, following a weak close in the previous session. Both the Nifty 50 and Sensex slipped on December 2nd, with the Nifty50 closing at 26,032.20, down 0.55% or 143.55 points, and the Sensex ending at 85,138.27, down 0.59% or 503.63 points.
Global and Domestic Cues
Global cues suggest a potentially range-bound opening. Positive closures in European indices may provide some support to banking and IT sectors. However, persistent Foreign Institutional Investor (FII) outflows could limit strong rallies, while consistent Domestic Institutional Investor (DII) buying might cushion losses, leading to moderate intraday volatility.
The GIFT Nifty was trading around 26,206, indicating a flat start for the Indian benchmark index.
Key Factors Influencing Market Sentiment
Several factors are expected to influence market movement on December 3:
- RBI Monetary Policy: Market participants will be closely watching the outcome of the RBI monetary policy meeting. Dampened hopes of an RBI rate cut, following robust GDP growth figures, may keep investors cautious.
- US-India Trade Talks: Developments in US-India trade negotiations will also be a key factor.
- FII and DII Activity: Continued FII outflows and DII buying will likely play a significant role in determining market direction. On December 2nd, FIIs net sold ₹3,642.30 crore, while DIIs net purchased ₹4,645.90 crore worth of shares.
- Technical Levels: According to analysts, the Nifty has crucial support at 25,950 and resistance at 26,150. A decisive move above 26,150 could improve sentiment in the near term. Immediate resistance for the Sensex is placed near 85500-85600. Support is expected around the 84600-84700 zone.
Expert Outlook
Analysts suggest a cautious approach, with near-term consolidation likely before a potential upward move resumes. The Nifty50 has formed a bearish candle, signaling a continuation of corrective consolidation.
- Bajaj Broking: According to Bajaj Broking Research, the Nifty50 has formed a bearish candle, signaling the continuation of corrective consolidation on the weekly expiry session and the index is approaching a key support area of 26,000-25,800. They believe the current breather should be used to accumulate quality stocks for the next leg of upmove towards 26,500 levels.
- Choice Equity Broking: Choice Equity Broking suggests that immediate resistance for the Nifty is at 26,150–26,200, and a breakout above this band could allow a recovery toward 26,300. Support levels are seen at 25,900 and 25,800.
Sectoral Performance
On December 2, all sectoral indices finished in the red, with metals, oil & gas, private banks, consumer durables, and media each declining around 0.5%. Financial Services and Banking indices were the primary laggards.
Overall Market Sentiment
Overall market sentiment is likely to be cautious, with a potential for range-bound trading. Investors are advised to maintain firm risk management and be vigilant of global developments.
