The Indian equity market witnessed a strong upward move on Friday, December 5, 2025, as the Nifty rallied sharply following the Reserve Bank of India’s (RBI) interest rate cut announcement. The move came as part of the central bank’s effort to support India’s “goldilocks economy” by boosting liquidity and lowering borrowing costs

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Nifty Overview

The Nifty opened almost flat, with a minor gap down of 4.15 points, starting the session at 25,999.80. During the day, it made a low of 25,985.35 and a high of 26,202.60, before closing strongly at 26,186.45, up by 152.70 points or 0.59%.

The day started with a quiet tone as traders awaited the RBI Governor’s speech at 10 a.m.. Soon after the announcement of the rate cut, the index surged over 100 points within minutes, reflecting strong buying momentum across heavyweight sectors.

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Market Behaviour Today

• The market opened flat but stayed range-bound till 10 a.m. due to anticipation around the monetary policy.
• Post the rate cut announcement, buyers dominated the session, and Nifty spiked by 100 points in less than five minutes.
• Cumulative Delta reading was +153,825, with a maximum Delta of 165,300, confirming robust buyer strength.
• A brief liquidity sweep followed the bullish spike as the market retraced temporarily to fill the fair value gaps (FVGs) — both bullish and bearish.
• However, sentiment remained firmly bullish, with continuous accumulation observed till the closing session.
• Around 1:30 p.m., mild profit-booking emerged, but buyers remained in control as Nifty climbed back towards 26,200 by closing.
• Notably, Cumulative Delta stayed positive throughout the day, suggesting consistent buying pressure and absence of strong sellers.

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Technical and Sentiment Analysis

All indicators point to a clear short-term bullish trend. The market structure, Delta data, and intraday liquidity behaviour imply that buyers are still active and accumulating positions.

• Support level: 26,000
• Resistance level: 26,300
• Traders should remain bullish-biased but maintain protective hedges to mitigate potential downside volatility.

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Sectoral Performance

• Top Gaining Sector: Financials, led by strong moves in banking and NBFC stocks following the RBI’s policy shift.
• Sector Under Pressure: Consumer stocks, as rate-sensitive demand optimism shifted temporarily towards financial plays.

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Open Interest (OI) Data

• The highest Call OI stands at 26,500, indicating a near-term resistance area.
• Put OI is most concentrated at 26,000, confirming it as a strong support zone.
• Call OI decreased at 26,000 while Put OI increased—a bullish sign suggesting traders are expecting Nifty to hold above this level.

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Major Global and Domestic News

• Putin and Modi Discuss Trade, Peace in New Delhi Summit — strengthening geopolitical and trade confidence between India and Russia.
• RBI cuts key policy rates, boosting liquidity and signaling support for sustainable economic growth.
• Indian Rupee slightly weakened following the rate cut, as markets adjusted to lower yield expectations.

Together, these developments created a risk-on sentiment, fueling buying in equities and broad-based market optimism.

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Conclusion

The Nifty’s sharp rally on December 5, 2025, was primarily driven by the RBI’s proactive rate cut, which infused fresh optimism across rate-sensitive sectors. The market’s persistent positive Delta and strong sectoral leadership in financials underline bullish momentum in the near term.

However, traders should watch 26,000 as critical support and remain hedged, as post-event volatility could surface once short-term profits are booked.

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Disclaimer

This article is for educational purposes only. The author is not SEBI-registered and does not provide investment advice. Trading and investing in the securities market involve risk. Always consult your financial advisor before making investment decisions.
The author is not affiliated with any trading platform, company, or service, and no product or course is being promoted. The intent is purely to share personal market views and learning experiences from live market observations.