Trade Setup For Dec. 5: Nifty Faces Significant Resistance At 26,100 As All Eyes On RBI MPC Decision

The NSE Nifty 50 found support at 25,950–25,900 levels after closing above the 26,000 mark and snapping its four-day losing streak, according to Mayank Jain, market analyst at Share.Market.

"Support is placed at 25,950–25,900, while 26,150–26,200 may restrict upside attempts," Jain said.

The Nifty is expected to stay largely range-bound between 25,900 and 26,200, with intraday volatility driven by the RBI policy outcome, according to Jain.

"On the flip side, the resistance zone between 26,100 and 26,150 constitutes a significant barrier, and sustained movement exceeding this zone is anticipated to build momentum toward the subsequent resistance levels around 26,250-26,300 in the forthcoming period," Osho Krishnan, chief manager of technical and derivative research at Angel One, said.

A positive policy tone can help the index break above 26,200 and move toward 26,300 on a short-covering, whereas a weak or cautious outcome may drag it below 25,900, opening room for 25,750 or lower, according to Jain.

"Looking ahead, it is anticipated that volatility will persist in the markets following the outcome of the Monetary Policy Committee (MPC) meeting, which is likely to influence the near-term trends for market participants," Krishnan said.

The Bank Nifty Index found immediate support at 59,000 levels and resistance was identified at the 59,800 level by Vatsal Bhuva, technical analyst at LKP Securities.

The Bank Nifty formed a doji candle with long shadows in either direction, signalling consolidation ahead of the RBI monetary policy outcome, according to Bajaj Broking Research. "We expect the index to consolidate and form a base in the range of 58500-60100 in the coming sessions."

"A follow through strength above Monday’s high (60,114) will open further upside towards 60,400 and then towards 61,000 levels in the coming weeks," it added.

The Nifty closed above the 26,000 mark, snapping its four-day losing streak. The index saw an uptick of 0.18% or 47.75 points to 26,033.75. The Nifty consolidated in the 250-point range, with Tata Consultancy Services Ltd. and SBI Life Insurance Ltd. gaining the most in trade.