Benchmark indices touched a new milestone, supported by stronger-than-expected Q2 GDP growth. However, the initial optimism was short-lived as markets witnessed profit booking, eventually ending the day on a volatile note amid weak global cues and persistent FII selling pressure.

At the close, the Sensex fell 64.77 points (0.08%) to 85,641.90, while the Nifty slipped 27.20 points (0.10%) to 26,175.75, reflecting a subdued and volatile trading session. On the sectoral front, Nifty Auto, Metal, IT, and PSU Bank indices displayed noticeable strength. In contrast, Nifty Realty, Healthcare, and Pharma remained the key laggards, while other sectors traded with a mixed bias, indicating a lack of broad-based momentum. The broader market also mirrored the cautious sentiment. Nifty Midcap 100 ended flat, showing little directional movement, whereas the Nifty Small cap 100 gained a marginal 0.25%, supported by selective buying interest.

Nifty Outlook

Index has formed a bearish candle with a similar open and high highlighting profit booking at higher levels near the all-time high. Nifty in the last three sessions is seen consolidating around the all-time high. Going ahead we expect the index to maintain overall positive bias and head towards 26,500 and then towards 26,800 levels in the coming week being the measuring implication of the recent broader range breakout (26,100-25,400). A follow through weakness below 26100 will signal some consolidation in the range of 26,300-25,800 in the coming sessions. The last two-months uptrend has remained well within a rising channel, indicating sustained demand at a higher level. Immediate support is placed at the last week breakout area of 26,000-25,800, sustaining above the same will keep the bias positive.

Bank Nifty Outlook

Bank Nifty has formed a bearish candle with a similar open and high highlighting profit booking at higher levels near the all-time high. Going ahead, a follow through strength above Monday’s high (60114) will open further upside towards 60,400 and then towards 61,000 levels in the coming weeks. The entire up move of the last 2 months is well channelled signaling sustained demand at elevated levels. Key support is placed at 58,300-58,600 levels being the confluence of the last two weeks lows and recent breakout area.

Ashika Institutional Equities

Indian markets opened the week on a upbeat note, registering a strong gap-up opening after robust GDP numbers released on Friday evening. India recorded its fastest growth in six quarters, with GDP expanding 8.2%, lifting overall market sentiment and fueling positive momentum at the open. The benchmark index Nifty mirrored this optimism, opening sharply higher and even marking a fresh all-time high of 26,325. However, profit-booking at higher levels led to selling pressure, dragging the index down to test 26,150 level before stabilizing. Sectorally, Auto, CPSE, Commodity, PSE, and Metals indices showed notable strength throughout the session. Meanwhile, pockets of weakness emerged in PSU Banks and FMCG stocks, capping broader gains.

On the derivatives front, a significant open-interest build-up was observed in KFINTECH, UNOMINDA, KPITTECH, KAYNES, and PAGEIND, indicating active participation and fresh positions in these counters. In the Nifty options chain, the highest Call OI stood at the 26,300 and 26,200 strike prices, suggesting strong resistance zones. On the downside, the highest Put OI was concentrated at the 26,200 and 26,000 strikes, pointing to key support levels. Market participants now shift their focus to the RBI policy meeting scheduled this week, which is expected to guide near-term sentiment and market direction.

Also Read: India's GDP Jumps 8.2% in Q2 FY26, Beating Estimates

Motilal Oswal Financial Services Ltd 

Indian equities ended flat on Monday after the Nifty briefly hit a fresh record high of 26,325 before witnessing profit-booking. The benchmark closed marginally lower at -0.1% (-27 pts) as investors weighed strong macro data against a softer manufacturing print, which fell to a 9-month low in November amid moderation in sales, output and currency-led cost pressures. Broader markets were largely muted, with the Nifty Midcap100 closing unchanged and the Smallcap100 rising 0.25%. Sectoral performance was mixed.

Banking stocks were the key highlight as the Nifty Bank index crossed the historic 60,000 mark for the first time, supported by strong traction in PSU banks and optimism around synchronized rate cuts in India and the U.S. Autos (+0.8%) extended gains on robust November wholesales driven by favourable GST rates, easing financing costs and improving rural sentiment. Metals (+0.6%) found support from firm commodity prices and resilient global manufacturing trends. IT continued its uptrend (+0.4%) on improving demand visibility and a weaker rupee. Indian rupee depreciated to a new record low as muted trade flows and limited progress on the U.S.–India trade discussions weighed on sentiment. Investors now look ahead to key global macro triggers, including manufacturing PMI prints from the Eurozone, U.S., and U.K. today, followed by Eurozone CPI and U.S. JOLTS data tomorrow. In the near term, markets may remain range-bound as participants await clarity on the potential rate-cut trajectory and developments on the trade deal front.