The Indian stock market is expected to start lower on Wednesday, December 10, as investors await the outcome of the US Federal Reserve policy meeting. Global cues remain mixed, which is influencing Indian markets.
On the derivatives front, the trends in Gift Nifty indicate a negative start. Gift Nifty was trading around 25,902, showing a discount of nearly 58 points from the previous close of Nifty futures. On Tuesday, both benchmark indices ended lower, with the Sensex falling 436 points, or 0.51%, to 84,666, while Nifty 50 dropped 120 points, or 0.47%, to 25,839.
Sensex Outlook
Sensex is showing signs of weakness on daily and intraday charts, though it appears oversold. Analysts suggest that 84,400 will act as key support. As long as the index stays above this level, a short-term pullback rally is possible. On the upside, resistance is seen at 85,000 and 85,200. However, if Sensex falls below 84,400, selling pressure may increase, and it could retest the 84,000 level.
Nifty 50 Outlook
Nifty 50 formed a Doji-like candle on the daily chart, indicating indecision among traders. This type of candle often signals short-term bottoming after a decline. Analysts expect support near 25,700, and any bounce from this level could take the index toward 26,100–26,200 in the near term.
Derivatives and Market Sentiment
Derivatives data shows cautious positioning. Call writers have added positions at near-term strikes, creating strong resistance at 26,000, with around 78.82 lakh contracts. Meanwhile, put writers have shifted positions lower, giving strong support at 25,500, with 51.03 lakh contracts. The Put-Call Ratio has risen to 0.67 from 0.47, reflecting increased caution among traders.
In short, while markets may open lower on December 10, technical indicators suggest the possibility of a short-term recovery if key support levels hold. Investors are advised to watch crucial levels closely and consider market volatility before taking positions.
