Market Closing View for 16th Dec by Ponmudi R, CEO, Enrich Money

A risk-averse mood dominated trading as the rupee’s breach of the 91 level against the US dollar raised macro concerns, while weakness across Asian markets added to global uncertainty. This combination prompted investors to reduce risk, triggering broad-based profit-booking, particularly across realty, financial services, metals and IT names.

Nifty 50 traded with a negative bias through the day but managed to hold above the crucial slope support near 25,850, reinforcing the view that the market remains in a range-bound consolidation phase, not a trend reversal. Price action continues to oscillate within the 25,850–25,950 zone around short-term moving averages, indicating indecision. On the upside, the 26,000–26,100 band remains a stiff resistance, consistently capping recovery attempts over recent sessions.

Bank Nifty ended on a softer note, extending its short-term corrective phase. The index faced persistent supply at higher levels, with every intraday bounce meeting selling pressure. Technically, Bank Nifty is consolidating with a slight downward bias, trading below immediate resistance while still holding above key positional supports. The 59,000–58,800 zone has emerged as a critical demand pocket, while 59,600 now acts as a firm ceiling. Momentum indicators point to fading near-term strength, but there is no confirmed breakdown of the broader bullish structure yet. The near-term outlook remains cautiously neutral to mildly negative.

From a macro perspective, markets are responding to global risk-off sentiment, driven by uncertainty around the US interest-rate outlook, elevated bond yields, and mixed global equity performance. A relatively firm US dollar continues to keep the rupee under pressure, influencing FII behaviour. While export-oriented pockets may benefit selectively, overall sentiment remains guarded. Importantly, steady domestic institutional inflows continue to cushion downside risks, preventing sharp corrections despite FII selling. India’s medium-term fundamentals—healthy growth outlook, controlled inflation trajectory, and strong domestic liquidity—remain intact
Ponmudi R, CEO, Enrich Money- https://enrichmoney.in

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