Dalal Street witnessed yet another cautious trading session as selling pressure persisted across benchmark indices. Market sentiment remained fragile, with traders preferring capital preservation over aggressive bets. According to Riddhi Siddhi Share Brokers – Market Intelligence Desk, the undertone of the market clearly reflects a sell-on-rallies environment, where optimism is quickly met with supply.
Benchmark Indices: A Weak Close Signals Continued Caution
At the close of trade (3:30 PM), key indices ended in the red:
- NIFTY 50: Down 42 points at 25,819
- SENSEX: Slipped 120 points to 84,560
- BANK NIFTY: Fell 108 points to 58,927
This marked the third consecutive losing session for Nifty, underlining a distinctly bearish near-term setup. Despite sporadic attempts at stabilization during the session, pessimism outweighed optimism.
Rupee vs Equity Markets: A Rare but Important Divergence
One of the most interesting developments of the day was the divergence between equities and the Indian Rupee.
The Indian Rupee staged a sharp intraday recovery to around ₹90.5 per US dollar, rebounding from record lows after decisive intervention by the Reserve Bank of India (RBI).
What supported the Rupee?
- RBI stepped in to defend the currency
- State-run banks sold dollars aggressively on behalf of the central bank
- USD/INR briefly crossed ₹91 before pulling back sharply
However, despite today’s rebound, the rupee remains down over 6% in CY2025, making it one of the worst-performing emerging market currencies.
Key reasons for continued currency pressure:
- Persistent FII outflows from Indian equities
- Elevated US tariffs
- Lingering US–India trade uncertainty
This ongoing currency volatility continues to cap risk appetite in equity markets.
Why Are Markets So Cautious?
According to Riddhi Siddhi Share Brokers, the current pessimism is driven by two major overhangs:
1. Rupee Volatility
Even with RBI intervention, currency swings are unsettling investors and discouraging fresh long positions.
2. Relentless Foreign Selling
Sustained FII outflows amid global trade frictions and policy uncertainty are keeping markets under pressure.
Net-net: Currency stress combined with foreign fund outflows continues to weigh heavily on sentiment.
Market Internals: Volatility Cools, But Direction Remains Weak
- Advance–Decline Ratio: 25 : 25 (Neutral breadth)
- India VIX: 9.83 (Down 2.29%) – volatility cooled, but caution persists
- NIFTY PCR (23 Dec): 0.58 (Bearish bias)
- NIFTY PCR (30 Dec): 1.00 (Neutral)
- USD/INR Futures (Dec): 90.44 (Down 0.68%)
While volatility has eased marginally, the underlying trend remains negative.
Sectoral Performance: Selective Strength, Broad Weakness
Gaining Sectors
- NIFTY PSU BANKS: +1.29%
- NIFTY IT: +0.29%
- NIFTY METAL: +0.25%
Losing Sectors
- NIFTY MEDIA: −1.71%
- NIFTY CONSUMER DURABLES: −0.96%
- NIFTY REALTY: −0.84%
Defensive and value-driven pockets outperformed, while consumption and rate-sensitive sectors remained under pressure.
Technical Snapshot: Nifty Slips Below Key Levels
- Nifty closed below the psychological 25,850 mark
- Trading below 21-DMA (26,019)
- Marginally above 50-DMA (25,803)
- Well above 100-DMA (25,320) and 200-DMA (24,768)
Bank Nifty also ended weak and remains well below its all-time high of 60,114.
Meanwhile, mid-caps (-0.54%) and small-caps (-0.73%) underperformed, highlighting growing risk aversion.
Stocks in Focus: Movers That Caught Attention
- Shriram Finance (+2.07%): Hit a record high ahead of board meeting to consider fund-raising
- Ahluwalia Contracts (+0.37%): Secured EPC order from BSTDC, Bihar
- Indian Overseas Bank (−6.45%): Slid after government proposed 3% OFS
- Lupin (+1.12%): Received US FDA EIR with VAI status for Nagpur facility
- RailTel (−0.71%): Won ₹26.9 crore IT infrastructure project
Bulls & Bears of the Day
Bulls: SHRIRAMFIN, SBIN, HINDALCO, EICHERMOT, TATACONSUM
Bears: MAXHEALTH, APOLLOHOSP, TRENT, BAJAJ AUTO, HDFCLIFE
52-Week Action: New Highs & Lows
Fresh Highs: HINDZINC, NATIONALUM
Fresh Lows: ACC, BATAINDIA, COLPAL, PAGEIND, PFC, REC
Outlook for Thursday: Volatility Trigger Ahead
A perfect storm appears to be brewing for Nifty in the near term.
Technical Levels to Watch
- Key Support: 25,693 (make-or-break)
- Resistance: 26,000
As long as Nifty trades below 26,000, selling on strength remains the preferred strategy.
👉 All eyes are now on US CPI inflation data, scheduled tonight, which could act as a major volatility trigger for global markets.
Riddhi Siddhi Share Brokers’ Strategy Snapshot
Short-Term Bullish
HINDALCO | IDFCFIRSTB | SBIN
Long-Term Bullish
INDUSTOWER | BELRISE | M&M
Bearish
COLPAL | MAXHEALTH | POLYCAB
Stocks to Avoid
HDFCLIFE | PFC | REC
Final Word: Capital Preservation Is Key
In the current environment of currency volatility, foreign fund outflows, and global uncertainty, prudence trumps aggression. Traders should stay light on leveraged positions and focus on protecting capital until clarity emerges on US–India trade talks and global inflation trends.
For daily market intelligence, technical levels, and actionable insights, stay connected with Riddhi Siddhi Share Brokers — your trusted partner in navigating volatile markets.
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