Indian equity benchmark indices are likely to open higher on Monday as stronger-than-expected economic growth in the quarter through September is expected to boost investor sentiment. India’s economy grew 8.2 per cent in July-September, supported by robust consumer spending and front-loading of production before local festivals.
Nifty futures on the NSE International Exchange traded 113.60 points, or 0.43 per cent, up at 26,501, hinting at a positive start for the domestic market on Monday. Asian stocks made a mixed start on Monday as US rate-cut optimism lifted risk sentiment ahead of economic data. Nikkei dropped more than a per cent, while KOSPI was down one-fourth a per cent. Hang Seng inched higher.
US stocks climbed on Friday in thin trading volume during a shortened session after Thanksgiving, driven by gains in retail and a recovery in tech stocks. The Dow Jones Industrial Average 0.61 per cent, to 47,716.42 points, the S&P 500 gained 0.54 per cent, to 6,849.09 points and the Nasdaq Composite added 0.65 per cent, to 23,365.69.
The dollar index was at 99.414, little changed on the day. The index has dropped 8 per cent this year with much of the losses coming in the first half of the year. Investors will watch out for comments from Federal Reserve Chair Jerome Powell later in the day as they look for clues on what the Fed will do later this month.
In commodities, oil prices rose after OPEC+ agreed to leave oil output levels unchanged for the first quarter of 2026 at its meeting as the group slows its push to regain market share amid fears of a looming supply glut. Brent crude futures were 1 per cent higher at $63.03 a barrel. US West Texas Intermediate crude was at $59.16 a barrel, up 0.99 per cent.
Near-term volatility is likely given the heavy macro calendar and the upcoming RBI policy announcement. Investors should continue to adopt a buy-on-dips approach near key support levels and prioritise large caps for stability, said Ajit Mishra, SVP of Research at Religare Broking. “Traders should keep trailing stop-losses on profitable positions and focus on sectors demonstrating strong price structure and consistent institutional demand.”
Provisional data available with NSE suggest that FPIs turned net sellers of domestic stocks to the tune of Rs 3,795.72 crore on Friday. On the other hand, domestic institutional investors (DIIs) turned buyers of Indian equities to the tune of Rs 4,148.48 crore on a net-net basis. FPIs pulled out a net Rs 3,765 crore from Indian equities in November, driven by global risk-off sentiment.
On the back of these macro trends the market can move up further. The macro numbers are a shot in the arm for bulls. This has the potential to halt sustained FII selling and force them to turn buyers in India, said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
Nifty & Sensex outlook
26,100/85,300 and 26,000/85,000 would act as key support zones. On the higher side, the uptrend is likely to continue till 26,350/86100, said Amol Athawale of VP Technical Research at Kotak Securities. “Upside may also persist, which could lift the index to 26,500–26,600/86,500-86,800. On the flip side, below 26,000/85,000, the uptrend would become vulnerable. Below this level, the market is likely to retest 25,850–25,800/84,500-84,300,” he adds.
Nifty has formed a bullish hammer near its lifetime high, suggesting sustained buying interest and the potential for further upside. It has successfully retested its cup-and-handle pattern and extended its upward move. On the upside, immediate resistance is seen at 26,300, followed by 26,400 and 26,500, said Choice Broking.
“On the downside, support is placed at 26,100 and then at 26,000, with a deeper breakdown below 25,850 likely to invite additional downside pressure. Given the current structure, a ‘buy-on-dips’ strategy remains appropriate, though traders are advised to stay disciplined with strict stop-losses due to ongoing market volatility,” he said.
Nifty Bank outlook
Nifty Bank continues to be the star of the market, delivering outstanding outperformance. It appears well-positioned to climb toward 60,300 and then 61,000, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. “Support is placed at 58,800–58,700, coinciding with the 20-day EMA. Nifty Bank is likely to continue leading the broader market move.”
Nifty Bank has rebounded from the upper band of the recent range breakout area and is seen sustaining above 59,500 levels. The entire up move of the last 2 months is well channelled signaling sustained demand at elevated levels, said Bajaj Broking.
“We expect the index to retain its positive momentum and move towards the 60,400 level in the coming sessions. A move above that will open further upside towards 61,000 levels in the coming weeks Meanwhile, the 58,800-58,500 is likely to act as a crucial support area, being the lows of the last two weeks,” it adds.
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