Where is the market headed?
It was certainly not a day to remember for the markets. There was fierce selling across the board, with almost all benchmark indices losing more than half a percent. Every sector ended deep in the red, as fear-based selling hit tech and auto stocks the hardest. The Nifty, which had been holding an important support for some time, finally broke below it — a crucial point that could define its next move.
Before diving deeper into the charts, let’s take a quick look at the global backdrop. The discussions around a possible AI-driven stock market bubble continue to grow louder. Just like the dot-com bubble of 2000, some patterns seem to be repeating.
On the positive side, NSE made an important announcement about introducing a pre-open session for the F&O segment from December 8. This move aims to improve price discovery and reduce early-session volatility, which has been a pain point for years.
Market Overview
Coming to the markets, the Nifty closed down 0.64%, breaking below the crucial 25,700 support and even dipping under 25,600. There’s a chance that Nifty could find some support around the 40-day moving average, but if it doesn’t, the index might consolidate further.
Nifty Next 50
The Nifty Next 50 fell 0.45%, midcaps were down 0.36%, and small caps dropped 0.6%, holding close to their support at 17,300.
Nifty Mid and Small Cap
Bank Nifty
Bank Nifty slipped 0.47% and remains choppy, while gold eased 0.32% and silver fell sharply by 1.3%.
GOLD
SILVER
Advance Decline Ratio
The advance-decline ratio was weak with 366 declines versus just 134 advances, and the heatmap was mostly a sea of red.
Heat Maps
Tech stocks like Infosys, TCS, and Wipro led the decline, while a few names like SBI and M&M managed to stay green.
Mover Of The Day
Sectoral Overview
In sectoral action, every index closed in red except MNCs and PSU banks, which remained relatively flat. The CPSE sector was the worst performer, down 1.7%, dragged by Power Grid, NBCC, Coal India, and ONGC.
Sector of the Day
Nifty CPSE Index
Nifty India Defence Index
U.S. Market
Globally, US markets also remained weak, with the S&P 500 and NASDAQ posting mild losses as smaller stocks underperformed.
Quick Insight
The most interesting insight today comes from a Bank of America report showing cumulative global rate cuts over 24 months. The current figure is nearing levels seen during the Global Financial Crisis, though this time the cuts are preemptive rather than reactive.
Central banks are slashing rates to manage debt and fiscal stress — not because of a recession. However, this approach creates its own risks. Cheap money can inflate asset bubbles, weaken currencies, and erode savings as inflation stays higher than interest rates.
This leads to the final question — why are central banks buying record amounts of gold? Data from Visual Capitalist shows that after years of selling in the 1990s, gold buying has surged dramatically since 2010, doubling in recent years.
Are central banks preparing for a reset in the global monetary system? Only time will tell. For now, the trend suggests a growing lack of trust in fiat currencies.
