Nifty declines for third consecutive session ahead of Fed policy decision
By Prime Research | Updated at: Dec 10, 2025 05:58 PM IST
Nifty extended its losing streak to the third consecutive session, declining 81 points to close at 25,758. The index opened 24 points higher and initially gained momentum, rising 83 points.
However, post 10:30 A.M., Nifty faced resistance near its 20-DEMA and reversed sharply, shedding over 200 points from the day’s high to end near the session’s low. NSE cash market turnover was lower by 10% compared to yesterday.
From the Nifty basket, Eicher Motors, Hindalco, and HDFC Life emerged as the top gainers, while Indigo, ETERNAL, and Trent faced selling pressure and ended among the key laggards.
Sectoral performance painted a mixed picture, with Media, Metal, and Pharma indices leading the gains, whereas Consumer Durables, IT, and PSU Banks witnessed selling pressure and closed as the major losers.
After a pullback rally yesterday, both the Nifty Midcap 100 and Smallcap 100 Index resumed their downward journey by falling nearly 1% each. Market breadth weakened, as declining shares outpaced advancers, driving the advance–decline ratio on the BSE down to 0.83, a clear indication of renewed selling pressure across the broader market.
Following yesterday’s recovery, the Indian Rupee once again lost ground, weighed down by cautious sentiment ahead of the U.S. Federal Reserve’s policy decision. The prevailing risk-averse market sentiment, compounded by a high U.S. Dollar demand from precious metal importers, contributed to the Rupee’s downward trajectory.
The index closed near to its intraday low, which also coincides with the 50-DEMA placed at 25,728, a key short-term support. A decisive break below this level would signal further downside, opening the way for declines toward 25,660 and 25,450 in the near term. On the higher side, the 20-DEMA at 25,955 is expected to act as the immediate resistance zone.
Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest.
Source: HDFC Securities Prime Research
