Indian benchmark equity indices, Nifty 50 and Sensex, saw a sharp decline on Monday, December 8, with the Nifty closing below the crucial 26,000 mark for the first time in nine days. The NSE Nifty 50 fell by 225.90 points, or 0.86 percent, to settle at 25,960.55. The BSE Sensex also plunged, dropping 609.68 points, or 0.71 percent, to close at 85,102.69.^[1][2] This significant downturn has led experts to issue cautious predictions for tomorrow, December 10, highlighting key support and resistance levels for traders. ### Bearish Sentiment Dominates Market The market's performance on Monday was characterized by widespread selling pressure and a "long bear candle" formation on the daily chart, signaling a strong downside reversal.^[1][2][3][4] This bearish trend emerged as investors engaged in profit booking amid continuous foreign institutional investor (FII) outflows.^[1][2][5] Global market weakness, coupled with anticipation of the US Federal Reserve's policy decision, further dampened investor sentiment.^[2][6][7][5] Rupak De, Senior Technical Analyst at LKP Securities, noted that Nifty slipped back after recent optimism, breaking below the 26,000 support.^[1] He added that the index closed below its 21-day Exponential Moving Average (EMA) for the first time in many days, indicating a weakening trend.^[1][4] "Nifty sentiment looks weak in the short term, with the index potentially sliding towards 25,730," De stated.^[1] ### Key Support and Resistance Levels Market analysts are closely watching several technical levels to gauge the Nifty's potential movement. Experts identify immediate support for the Nifty in the range of 25,800 to 25,850.^[1] Aakash Shah, Technical Research Analyst at Choice Equity Broking, specified this range as a critical immediate support zone.^[1] If the Nifty falls below 25,890, a fresh wave of selling could emerge, potentially pushing the index towards 25,500-25,300, according to Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates.^[1][8] On the upside, Nifty faces stiff resistance at 26,100 to 26,150.^[1][9] Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking, indicated that the Nifty's slip below the short-term 21-day Daily Moving Average (DMA) near 26,000 now makes this level an immediate resistance zone. A^[8][4] sustained move above these resistance levels will be necessary for bullish sentiment to regain traction, Shah explained. S^[1]ome analysts also point to 26,200 and 26,325 as strong resistance levels, suggesting that any bounce towards 26,325 could be an opportunity for profit booking. ^[1][8]### Broader Market Weakness and Foreign Outflows The sell-off was broad-based, affecting various sectors across the Indian market. Nifty Realty emerged as the top loser, crashing more than 3.50 percent. T^[1]he Nifty PSU Bank index fell 2.81 percent, followed by Nifty Media (down 2.73 percent) and Nifty Metal (down 1.92 percent). T^[1]he Nifty Bank Index also closed significantly lower, dropping 538.65 points, or 0.90 percent, with all its 12 constituents in negative territory. ^[1]Midcap and Smallcap indices also experienced sharp declines, falling by 1.8 percent and 2.6 percent, respectively. G^[2] Chokkalingam, founder and head of research at Equinomics Research, suggested that small-cap stocks are likely to remain under pressure due to liquidity constraints. H^[10]e noted that retail investors have shown a preference for initial public offerings (IPOs) over small-cap stocks in 2025. ^[10]Continuous foreign fund outflows have been a significant contributing factor to the market's bearish tone. O^[1][5]n Monday alone, foreign investors sold stocks worth Rs 655.59 crore. S^[5]o far in December, they have pulled out Rs 11,059.21 crore from Indian equities, intensifying the selling pressure. ^[5]### Technical Indicators and Global Cues Technical indicators reinforce the cautious outlook. The Relative Strength Index (RSI) has slipped sharply, indicating a loss of bullish momentum. A^[7][11][4] sell signal on the Moving Average Convergence Divergence (MACD) and a bearish divergence on the RSI further reinforce this cautious tone, according to Nilesh Jain. T^[8]he Put/Call Ratio (PCR) stands at 0.48, which is below 1, indicating a neutral to bearish sentiment with more call activity than put. T^[9]he India VIX, a fear gauge index, also rose, signaling increased market volatility. ^[12][4]Global factors are also playing a crucial role. Weakness in global markets ahead of the US Federal Reserve meeting is a primary concern. T^[8][2][7][5]he sustained weakness in the Indian rupee and elevated Japanese bond yields are adding to the pressure, raising concerns about inflation and import-cost pressures. A^[7][5]jit Mishra, Senior Vice President – Research, Religare Broking Ltd, highlighted that investor mood has weakened due to rising global uncertainty and the possibility of a tighter global monetary stance. ## Investor Outlook for Tomorrow Experts advise investors to remain cautious and adopt a stock-specific approach. Ajit Mishra recommends focusing on defensives, quality companies, and fundamentally strong rate-sensitive sectors in the current environment. May^[1]ank Jain, Market Analyst at Share.Market, suggests that if Nifty breaks below Monday's low of 25,890, the decline could extend towards 25,750-25,700. Con^[2]versely, holding above 25,890 may lead to consolidation in the 26,200-25,900 range ahead of the US Federal Open Market Committee (FOMC) rate decision. Th^[2]e market is at a critical juncture, with the focus remaining on key levels that could dictate the next direction. Traders should consider these support and resistance levels carefully when making decisions. ME^[9]TA_TITLE: Nifty Falls Below 26,000, Experts Predict Further Decline

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