Indian benchmark indices, Nifty 50 and Sensex, are poised for a strong opening on December 12, following a positive lead from global markets and robust domestic institutional buying. This comes after the US Federal Reserve's anticipated interest rate cut, which provided a significant boost to investor sentiment on December 11. Both indices ended a three-day losing streak to close higher on Thursday, with Gift Nifty indicating a positive start for Friday's session.^{[1][2][3][4][5][6][7][8][9]} Global Market Tailwinds Fuel Optimism Wall Street closed with mixed results on December 11, yet delivered strong signals for Indian markets. The Dow Jones Industrial Average surged 1.3%, or 646 points, to close at 48,704.01, setting a new record. The S&P 500 also posted a modest gain of 0.2%, finishing at 6,901, and reached its own new closing high.^{[10][11][9][12][13]} However, the tech-heavy Nasdaq Composite lagged, slipping 0.3% to 23,593.86, weighed down by a sell-off in Oracle shares and broader concerns about artificial intelligence (AI) valuations.^{[14][15][10][11][9][16][12][13]} The US Federal Reserve cut its benchmark interest rate by 25 basis points on Wednesday, a move largely expected by markets.^{[14][4][17][15][18][6][19][9]} This dovish stance, signaling a potential pause in future hikes and even hinting at more cuts in 2026, reassured investors and injected liquidity into the global financial system.^{[15][18][19][9]} European markets also closed broadly higher on December 11, with the pan-European Stoxx 600 climbing 0.55%, Germany's DAX gaining 0.68%, and France's CAC 40 rising 0.79%.^[18][20] Asian markets largely mirrored this positive sentiment on December 12. Japan's Nikkei 225 climbed 0.97%, Hong Kong's Hang Seng gained 1.26%, and Australia's S&P/ASX 200 was up 1.18%.^[14] China's Shanghai Composite Index, however, saw a slight decline of 0.04% before rising to 3889 points later in the day, gaining 0.41% from the previous session.^[14][21] Overall, the US Fed's action and positive global cues created a supportive environment for Indian equities.^{[2][3][6][7][9]} Domestic Investor Strength Counters FII Outflows Foreign Institutional Investors (FIIs) continued their selling streak on December 11, offloading equities worth ₹2,020.94 crore. T^{[1][3][22][7][8][9]}his marks a persistent trend, with FIIs having sold shares worth ₹16,930.05 crore in December so far, following significant outflows in November and October. Ho^[9]wever, Domestic Institutional Investors (DIIs) provided strong counter-support, acting as net buyers. They infused ₹3,796.07 crore into the Indian equity market on December 11. This ^{[1][3][4][22][23][7][8][9]}consistent domestic buying has been crucial in offsetting foreign selling pressure and limiting downside risks for the Indian market. Rupe^[7][24]e Weakens, Oil Prices Fluctuate The Indian Rupee faced significant pressure on December 11, slumping to an all-time low against the US dollar. It closed at 90.32, depreciating 38 paise from its previous close. The r^[25]upee touched a record intraday low of 90.48. This ^[25][26]weakening was primarily attributed to uncertainty surrounding the proposed India-US trade agreement and sustained foreign portfolio outflows. Marke^[25][27][26]t analysts anticipate a continued negative bias for the rupee, though potential central bank intervention could offer some support. Mean^[25]while, crude oil prices showed mixed movements. Brent crude oil was trading around $61.10 to $62.59 per barrel on December 11, while West Texas Intermediate (WTI) hovered near $57 to $58 per barrel. Price^{[28][14][29][30][31][32][8]}s dipped due to oversupply concerns and geopolitical tensions, including the seizure of an oil tanker off Venezuela's coast. Howev^[29][31][32]er, underlying fundamentals, such as resilient global demand and moderating non-OPEC supply growth, suggested a complex picture for the energy markets. Tech^[32]nical Levels and Market Outlook Analysts predict a strong start for the Nifty 50 and Sensex on December 12, driven by positive global cues. For t^[2][3][6]he Nifty 50, immediate support is seen near 25,950–25,900, which aligns with a gap-area and the 10-day moving average. Resista^[1]nce levels are identified around 26,150–26,300, a zone where profit-taking might emerge. A sustain^[1]ed trade above 26,050 could push the index towards 26,300, while a failure to hold 25,900 might trigger a dip towards 25,750. The Bank ^[1]Nifty has support at 59,000 and 58,700, with resistance at 59,600 and 59,800. Technica^[1]l indicators for Nifty 50 on December 12 showed a "Strong Buy" signal, with the Relative Strength Index (RSI) at 60.09 and the Moving Average Convergence Divergence (MACD) at 24.73, both indicating buying interest. Despite t^[33]he positive momentum, some analysts caution that the market is in overbought territory after a sharp rally. Bajaj Bro^[1]king Research noted that Nifty formed a bullish candle on December 11, with strong buying interest around the 25,700 support area. Religare ^[4]Broking suggested that Nifty might struggle to sustain near 26,000, with a bias remaining mildly negative as long as it stays below 26,050–26,100. Broader Ec^[2]onomic Context India's macroeconomic landscape continues to show resilience. The Reserve Bank of India's repo rate stands at 5.25% as of December 5, 2025. The 10-year^[34] Government Securities (G-Sec) yield was 6.60% on December 11, 2025. Consumer Pr^[34]ice Index (CPI) inflation for October 2025 was 0.25% year-on-year. India's ec^[34]onomy is projected to grow at 6.6% real GDP in 2025, according to the IMF. The country^[35] has shown robust export performance, with total exports (merchandise and services) reaching a record US$825.25 billion in 2024–25, growing 6.05%. Services expo^[36]rts continued their strong trajectory, rising 9.34% during April–September 2025. These underlyin^[36]g economic strengths provide a stable foundation for the Indian equity markets. The Indian mar^[37]ket is expected to consolidate within a defined range, with a cautiously optimistic tone, as it navigates global developments and domestic fund flows.

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