Stock Market Today, 5 December 2025: Nifty Rebounds from Oversold Zone After RBI Rate Cut

Indian equities walked a tightrope on Friday, 5 December 2025, as traders balanced an oversold technical setup with a highly anticipated policy decision from the Reserve Bank of India (RBI). By mid-morning, the market had clearly voted: a 25-basis-point rate cut to 5.25% lifted sentiment, pushing Nifty back above the 26,050 mark and pulling the indices off their early lows. ^[1]

At the same time, the broader technical picture remains delicately poised. Multiple experts – including Rohit Srivastava and Anil Singhvi – are flagging a narrow band of supports around 25,850–25,900 on Nifty and near 59,100 on Bank Nifty as make-or-break levels for the short term. ^[2]

How the market set up for 5 December

Nifty snaps four-day losing streak, reclaims 26,000

On Thursday, 4 December, the Nifty 50 finally broke a four-session losing streak. The index climbed around 0.18–0.2%, closing near 26,034, after swinging between an intraday low around 25,938 and a high just above 26,090–26,100. ^[3]

The Sensex mirrored the move, ending roughly 158–159 points higher around 85,265, supported largely by heavyweight IT and financial names like Infosys, TCS, Bharti Airtel, ITC, Axis Bank and Mahindra & Mahindra. ^[4]

From a technical standpoint, Moneycontrol’s trade-setup note highlighted three key developments on Nifty for 4 December: ^[5]

The index closed above the previous day’s high,
Held above the 20-day and 50-day EMAs clustered near 25,970, and
Defended the prior session’s low while reclaiming the psychologically important 26,000 mark.

As long as 25,900 holds as support, the article notes that Nifty could grind higher towards the 26,100–26,300 zone in a consolidation-style move. A decisive break below 25,900, however, opens the door to 25,840, flagged as the next crucial support. ^[6]

Bank Nifty: indecision but trend still positive

Bank Nifty closed Thursday around 59,289, with a daily Doji candle signalling indecision. Yet, it still trades above its major moving averages, which keeps the broader trend biased to the upside even as momentum indicators show fatigue. ^[7]

Moneycontrol’s pivot and Fibonacci levels put near-term resistance for Bank Nifty around 59,486–59,786 and higher resistance near 60,847, while supports cluster around 59,114–58,813 and the 59,000–58,650 band on retracement metrics. ^[8]

Trade setup for 5 December: Nifty & Bank Nifty key levels

Spot and derivatives cues

The Moneycontrol trade-setup report for 5 December pulls together 15 data points that matter for traders going into Friday’s session. The most important takeaways: ^[9]

1. Nifty 50 (close ~26,034)

Pivot-based resistance: 26,084, 26,122, 26,183
Pivot-based support: 25,963, 25,925, 25,864
The daily candle is bullish with small wicks, reflecting positive bias but not explosive momentum.
RSI has nudged up to ~55, but still sits in a bearish crossover, while MACD and Stochastic RSI remain weak – a classic “consolidation with mild positivity” setup.

2. Bank Nifty (close ~59,289)

Pivot resistance: 59,486, 59,601, 59,786
Pivot support: 59,114, 58,999, 58,813
On Fibonacci retracements, 59,442 and 60,847 act as resistance, with 59,000 and 58,650 providing deeper supports.
The Doji pattern plus weakening momentum indicators points to pause, not reversal, in the broader uptrend. ^[10]

3. Options positioning – Nifty

Maximum Call OI: 26,500 (key resistance), followed by 26,100 and 26,000.
Maximum Put OI: 26,000 (strong support), then 25,500 and 25,900. ^[11]

This options map effectively builds a support zone around 25,900–26,000 and resistance around 26,100–26,500, neatly bracketing the technical levels discussed by other experts.

4. Options positioning – Bank Nifty

On the Call side, 60,000 carries the heaviest open interest, with 59,500 and 58,500 also meaningful – pointing to stiff resistance near 60,000.
On the Put side, open interest peaks at 59,500, with 59,000 and 58,500 acting as additional cushions. ^[12]

5. Put–Call Ratio & volatility

Nifty’s Put–Call Ratio has climbed to 0.93 from 0.85 in the prior session, signalling gradually improving bullish sentiment as traders add more Puts than Calls at key strikes. ^[13]
Meanwhile, India VIX has slipped to about 10.8, its lowest close since mid-October and well below key moving averages. That’s a double-edged sword: it reflects comfort for bulls and reduced fear, but such low volatility often precedes a sharp move in either direction. ^[14]

6. F&O and stock-specific cues

58 stocks show long build-up, 49 see short build-up, while 77 names are witnessing short covering – a mixed but constructive backdrop as some shorts are being unwound.
Bandhan Bank has been added to the F&O ban list, while Sammaan Capital stays under ban, limiting derivative activity in those counters. ^[15]

“Extremely oversold”: Rohit Srivastava on Nifty’s make-or-break levels

Technical analyst Rohit Srivastava, Founder of Strike Money Analytics and Indiacharts, describes the market as “extremely oversold”, with Nifty and Bank Nifty both hovering right on crucial support zones. ^[16]

In his conversation with ETMarkets, Srivastava makes three big points: ^[17]

Critical supports:
- Major support for Nifty lies at 25,900.
- For Bank Nifty, the key level is around 59,100.
  A sustained close below these levels, he warns, could trigger another 300–400-point slide on Nifty. If the supports hold, though, the intraday low could mark an intermediate bottom and set the stage for a rebound.
Oversold, but not broken
Srivastava notes that his proprietary swing indicators are flashing very strong oversold readings, not because Nifty has been correcting for months, but because the recent selloff in the broader market has been unusually intense even over a few days.
Uptrend structure intact, speed missing
Despite the pain in mid- and smallcaps, Nifty is still forming higher highs and higher lows – the textbook definition of an ongoing uptrend. The issue is not the trend, he argues, but “speed”: momentum is lagging and traders are cautious. Volatility, measured by India VIX, remains surprisingly subdued; it is low but hasn’t jumped to the panic levels of 19–20 that would usually accompany a deep correction. ^[18]

Srivastava also highlights sectoral rotation: earlier in the year small- and midcaps ran ahead while Nifty stayed muted; more recently, largecaps have done the heavy lifting while midcaps corrected. That rotation is adding another layer of complexity for traders trying to time a bottom. ^[19]

Anil Singhvi’s intraday map: buy zones creeping close

While Moneycontrol and ET focus on the broader setup, Zee Business Managing Editor Anil Singhvi continues to drill down into intraday trading ranges for Nifty and Bank Nifty.

According to a summary of his 4 December market strategy, Singhvi places Nifty 50’s support zone around 25,850–25,915, essentially overlapping with the 25,900 band that other analysts are watching. ^[20]

Although full intraday levels are behind Zee’s paywalled ecosystem, these public ranges make two things clear:

Singhvi sees buying interest emerging just below current levels, rather than much deeper down the chart.
His framework places strong support marginally under Thursday’s close, reinforcing the idea that downside from here may be limited if global and domestic triggers cooperate.

In practice, his strategy underscores what the derivatives data is already saying: bulls need to defend the 25,850–25,900 patch decisively. Loss of this region could flip intraday strategy from “buy-on-dips” to “sell-on-rallies” in a hurry.

RBI cuts repo rate to 5.25% – markets cheer

What the RBI did

The big macro story of the day arrived mid-morning, when the RBI’s Monetary Policy Committee (MPC) delivered a 25-basis-point cut in the repo rate, bringing it down from 5.50% to 5.25% and maintaining its stance at “neutral”. ^[21]

Key points from the policy and commentary:

The RBI Governor Sanjay Malhotra emphasised that India is enjoying a phase of rapid disinflation with robust growth, calling it something of a “goldilocks” period. ^[22]
The central bank raised its real GDP growth forecast to about 7.3%, revising estimates higher for the coming quarters. ^[23]
The RBI announced plans to buy government bonds worth ₹1 lakh crore via open market operations and to conduct a three-year dollar–rupee buy–sell swap of $5 billion, signalling an intent to manage both liquidity and currency volatility. ^[24]

How the market reacted

Immediately after the decision, bank and financial stocks led a sharp reversal:

The Nifty 50 climbed above 26,050, recovering more than 50 points from earlier levels.
The Sensex jumped over 200 points, trading around 85,470–85,480. ^[25]
Bank Nifty, which had opened about 70–80 points lower near 59,212, stabilised as rate-sensitive financials turned positive. ^[26]

Moneycontrol’s live blog notes that PSU banks, realty and IT were among the top sectoral gainers shortly after the rate cut, with indices like Nifty Realty, Nifty PSU Bank and Nifty IT all trading higher. ^[27]

Moneycontrol’s mid-session report further adds that: ^[28]

The Sensex had climbed roughly 350 points from the day’s low,
Nifty was trading comfortably above 26,050,
The rupee, after touching record lows in previous sessions, strengthened to around 89.69 against the US dollar in early trade, and
Brent crude was hovering near $63.15 a barrel, adding to the positive backdrop by easing inflation worries.

Earlier in the week, the rupee had slipped to about 90.43 per dollar, prompting a series of anxious headlines; Friday’s modest recovery therefore came as a welcome breather. ^[29]

FII/DII flows, GIFT Nifty and global cues

Foreign versus domestic flows

Fresh data from Upstox and the National Stock Exchange shows that foreign institutional investors (FIIs) net sold Indian equities worth roughly ₹1,944 crore on Thursday, while domestic institutional investors (DIIs) stepped in with net purchases of around ₹3,661 crore. ^[30]

For the month so far, FIIs remain net sellers to the tune of over ₹13,000 crore, and for the calendar year they are deeply net negative, even as domestic institutions and retail investors have increasingly filled the gap. ^[31]

This tug of war between foreign selling and domestic buying is one reason Nifty has stayed resilient near all-time highs despite bouts of currency and global risk-off stress.

GIFT Nifty and global markets

Before the opening bell on 5 December, GIFT Nifty futures were essentially flat to slightly lower – down just a few points around 26,180–26,185 – signalling a muted open as traders waited for the RBI’s verdict. ^[32]

Global equity cues were also lukewarm:

Most Asian indices traded in the red in the morning – the Nikkei was down more than 1%, while the Hang Seng and Shanghai Composite saw smaller declines. ^[33]
On Wall Street, the previous session had ended almost flat, with only a mild positive bias on the S&P 500 and Nasdaq after weakness in some large tech names. ^[34]

Against that backdrop, the RBI’s decision became the dominant domestic trigger – and so far the market has chosen to read the rate cut as growth-friendly rather than panic-driven.

Is this a short-term bottom for Nifty?

Putting the various pieces together, the market narrative on 5 December looks something like this:

Technical structure
- Nifty is oversold on several indicators but still in a larger uptrend, with higher highs and higher lows intact. ^[35]
- The 25,850–25,900 support band is now backed by:
  - Price action (Thursday’s bounce),
  - Pivot and options data (Put OI and pivot supports), and
  - Expert calls from both Moneycontrol and Rohit Srivastava. ^[36]
Macro environment
- The RBI has cut rates while simultaneously upgrading growth forecasts, supported by an 8%+ GDP print in recent quarters and cooling inflation. ^[37]
- Liquidity support via bond purchases and swaps should help keep financial conditions reasonably benign. ^[38]
Risks
- Persistent FII selling and a rupee that only just bounced from record lows mean the macro picture isn’t risk-free. ^[39]
- Ultra-low volatility (India VIX near 10.8) suggests that any negative surprise – global or domestic – could trigger an outsized move, particularly if 25,900 breaks and Nifty starts sliding toward 25,840 and below. ^[40]
Breadth and rotation
- The mix of long build-up, short build-up and short covering across F&O stocks points to active churn rather than one-way capitulation. ^[41]
- Sectoral rotation – from midcaps to largecaps and now back towards select rate-sensitive themes like banks, autos and real estate – is likely to remain a key feature of this market. ^[42]

Bottom line: Technically and macro-wise, the ingredients for a tradable bottom are falling into place – oversold readings near strong support, a growth-positive rate cut, and improving breadth in some pockets. But as Srivastava and others emphasise, confirmation will only come if Nifty holds above 25,900 and builds on gains toward 26,100–26,300 in the next few sessions. ^[43]

What traders and investors should watch next

Over the rest of today’s session and into next week, the key signposts to monitor are:

Price action around 25,850–25,900 on Nifty and 59,000–59,100 on Bank Nifty – a clean break below these zones would validate the bearish scenario of another 300–400-point slide; holding them reinforces the bull case. ^[44]
Follow-through on the RBI trade: Will banks sustain their post-policy bounce, or will worries about net interest margins (NIMs) and deposit growth cap the rally? ^[45]
FII/DII flow trend: Whether foreign selling slows, and whether domestic buying remains strong enough to absorb supply. ^[46]
Rupee and bond yields: A stable or firmer rupee plus a softening 10-year yield (which has already dipped after the cut) would bolster the case for risk assets. ^[47]
Global risk sentiment: Any sharp moves in US yields, crude oil, or geopolitical headlines could quickly override domestic positives. ^[48]

For now, though, Dalal Street appears to be giving the RBI’s rate cut a thumbs up, and the tug-of-war between oversold technicals and cautious global cues is tilting – cautiously – in favour of the bulls

References

Stock Market Today, 5 December 2025: Nifty Rebounds from Oversold Zone After RBI Rate Cut – Key Levels for Nifty & Bank Nifty