Indian equities closed lower on December 9, with the Nifty slipping below the 25,900 level. Global sentiment stayed fragile as investors turned cautious ahead of Wednesday’s US Federal Reserve policy decision. Mood dampened further after the US indicated potential tariff action on India’s rice exports. Persistent FII outflows continued to weigh on domestic markets, as foreign investors pared exposure amid global volatility. The rupee also weakened by 10 paise to 90.15 in early trade due to steady dollar demand from corporates, importers, and FPIs. By the closing bell, the Sensex fell 436.41 points (0.51%) to 84,666.28, while the Nifty dropped 120.90 points (0.47%) to 25,839.65. Among sectors, IT, auto, and metal declined 0.3–1%, whereas realty, telecom, capital goods, and PSU banks recorded gains of 0.5–1%. The midcap index edged up 0.3%, and the small-cap index rose 1.1%.

Nifty Outlook

The index formed a high-wave candle with a long lower shadow, indicating strong buying interest near the 50-day EMA. It has acted as a strong support in the entire current up move. Key support lies at 25,700–25,800, which aligns with the bullish gap from November 12, the 50-day EMA, and a key retracement zone of the prior uptrend. Sustaining above this band will be essential for continuing the current positive momentum. We expect the Nifty to trade in a 25,700–26,200 consolidation range. A clear breakout or breakdown will determine the next directional move. Short-term market drivers include the US FOMC meeting outcome, India’s CPI data, and developments in the US–India trade deal.

Bank Nifty Outlook

Bank Nifty has formed a bullish candle highlighting consolidation around the 20 days EMA amid stock specific action ahead of the US FOMC rate decision. Index on expected lines is seen consolidating and forming a base in the range of 58,500-60,100. We expect the index to extend the current consolidation in the coming sessions. Only a follow through strength above the last week high (60,114) will open further upside towards 60,400 and then towards 61,000 levels in the coming weeks. Key short-term support is placed at 58,200-58,600 levels being the confluence of the recent low and the major breakout area.

Also Read: Ashika Institutional & Bajaj Broking Markets Commentary for 8th Dec

Motilal Oswal Financial Services Ltd.

Indian equities traded weaker on Tuesday, with Nifty recouping part of its early losses but still closing 0.5% lower, down 121 pts. The index extended the previous session’s slide as investors stayed cautious ahead of the US Fed rate decision and lingering uncertainty around a potential US–India trade agreement. Sentiment was further pressured by reports that US President Trump may consider imposing new tariffs on Indian rice, signalling that trade negotiations remain unresolved. After an extended spell of weakness, the broader markets recovered, offering relief and easing pressure on the headline indices.

The Nifty Midcap100 gained 0.3% and the Smallcap100 advanced 1.1%, cushioning the impact of global uncertainties. Sectoral trends were mixed. Nifty PSU Bank rose 1.2% followed by Nifty Realty at +0.9%, indicating rotation into domestic-facing themes. On the flip side, Nifty IT fell 1.2%, extending losses for the second day on profitbooking, while Nifty Auto slipped 0.6%. India’s life insurance industry posted its strongest growth in nearly three years, with individual WRP up ~27% YoY in Nov’25. Private players’ share rose to ~75%, supported by GST-driven affordability, focus on traditional products, and wider distribution expansion, suggesting sustained momentum ahead. Key economic data due today include US JOLTS job openings and China CPI. Tomorrow’s US Fed interest rate decision remains the main catalyst for global markets. "We expect the headline indices to remain range-bound in the near term, with stock-specific action and the broader market recovery likely to continue. Markets will track global cues while awaiting the Fed’s policy stance for further direction", aaded Siddhartha Khemka- Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.