Home / Business and Economy / Markets Flat: RBI Rate Cut Fails to Move Nifty
Markets Flat: RBI Rate Cut Fails to Move Nifty
6 Dec
Summary
- Nifty ends flat week despite a 25 bps RBI interest rate cut.
- India VIX drops 11.21%, indicating persistently low market volatility.
- Key support at 25,900, resistance at 26,325; cautious optimism advised.
The domestic equity market largely traded within a range over the past week, with the Nifty closing flat to mildly negative. Despite a 25 basis points interest rate cut by the Reserve Bank of India in its monetary policy, the index exhibited no significant directional bias. India VIX declined sharply, reflecting a continued phase of low volatility.
The Nifty remains in a primary uptrend but faces stiff resistance at higher levels, hovering just above a crucial support zone between 25,900 and 26,000. Broader market participation and market breadth indicate underlying caution. A sustained move above 26,325 could reinstate momentum, while failure to hold 25,900 may lead to consolidation or weakness.
For the upcoming week, markets may see a quiet to modestly positive start, with resistance at 26,300 and 26,450, and supports at 25,900 and 25,750. A selectively bullish but cautious approach is recommended, focusing on quality stocks and sectors showing relative strength.
