Indian stock benchmarks are poised to open higher today, December 5, 2025, as investors await the Reserve Bank of India's (RBI) policy decision. The market is exhibiting a sense of cautious optimism, with the GIFT Nifty futures trading at 26,196 as of 7:52 a.m. IST, suggesting a positive opening for the Nifty 50 above its previous close of 26,032.2.

Yesterday, the Indian market closed higher, with both the Sensex and Nifty rebounding from a four-session losing streak, driven by gains in IT stocks ahead of the RBI's policy announcement. The S&P BSE Sensex rose 158 points, or 0.19%, to close at 85,265.32, while the NSE Nifty 50 advanced 48 points, or 0.18%, to finish at 26,033.75.

Market analysts anticipate potential volatility today, particularly around the time of the lending rate announcement. Mixed global cues, a weak rupee, and consistent foreign institutional investor (FII) outflows have been capping gains.

The RBI's Monetary Policy Committee (MPC) is expected to announce its bi-monthly monetary policy today, with expectations leaning towards the central bank maintaining the repo rate at 5.50% for the third consecutive time. While some experts anticipate a rate cut, the possibility of the RBI maintaining the status quo is also considered, given the backdrop of strong economic growth and a weakening rupee.

Vinod Nair, Head of Research at Geojit Investments, noted that the domestic markets closed flat amid mixed global cues and caution ahead of the RBI policy. He added that early value-driven gains were restrained by a record-low rupee and persistent FII outflows, but lowered expectations of an RBI rate cut supported a mild currency rebound, helping indices stabilize towards the close.

From a technical standpoint, the Nifty is expected to face crucial resistance in the 26,100–26,150 zone, while support is placed at 25,900–25,950. A fall below 26,000 may trigger a quick correction towards 25,950–25,900. Shrikant Chouhan, Head of Equity Research at Kotak Securities, believes that a reversal formation on daily charts indicates a likely pullback in the near future. He identifies 85,000 and 84,800 as key support zones for the Sensex, with 85,500 - 85,650 acting as a crucial resistance area.

Investors will be closely monitoring the RBI's policy announcement and commentary for further cues on the direction of the market. The central bank's stance on interest rates and its outlook on inflation and economic growth will play a significant role in shaping market sentiment in the coming days.