Market Pulse: Nifty Slips Below 26k as Rupee Woes Weigh; JSW Steel & Biocon in Focus
Date: December 4, 2025
The Big Picture: Bears Hold the Fort The Indian equity markets extended their losing streak on Wednesday, dampened by persistent foreign fund outflows and the Indian rupee’s plunge to a record low. The Nifty 50 ended lower by 0.2% at 25,986, slipping below the psychological 26,000 mark. Broader markets underperformed, with Midcap and Smallcap indices falling 1% and 0.7% respectively.
Institutional Activity The selling pressure from Foreign Institutional Investors (FIIs) continues, with net sales of ₹3,206 cr. Domestic investors (DIIs) tried to cushion the fall with purchases of ₹4,730 cr, but sentiment remained weak due to the currency depreciation.
Technical Talk: Indecision at Support
Nifty 50: The index formed a Doji candle on the daily chart, indicating indecision between bulls and bears. It is currently hovering near the 20-Day Exponential Moving Average (DEMA).
Support: 25,850 – 25,750.
Resistance: 26,150 – 26,250.
Outlook: The index needs to reclaim 26,000 to trigger any upside; otherwise, weakness may persist towards 25,750.
Bank Nifty: A Hammer-like candle formed near its 20 DEMA, often a sign of potential reversal if followed by buying interest. Key support lies at 59,000.
Stocks in Focus Despite the gloom, specific counters are buzzing with activity:
Fundamental Pick: JSW Steel (Buy)
The Catalyst: JSW Steel has announced a strategic restructuring of its Bhushan Power and Steel unit, transferring it to a subsidiary for ₹244.8 billion. This move, along with JFE Steel’s investment, will help reduce debt by ~₹350 billion.
- Entry: CMP ₹1150
Technical Pick: Biocon (Buy)
The Setup: The stock bounced from its 20 DEMA support with a strong bullish candle and a surge in volume.
Entry: CMP ₹410
Intraday Sell Ideas:
For traders looking to hedge, our quant models suggest shorting Suzlon (below ₹52.6) and REC Ltd (below ₹350.3) for intraday weakness.
F&O Insights The options data shows a tug-of-war at the 26,000 strike, which holds both the Maximum Call and Put Open Interest. This suggests the market might consolidate around this level before choosing a direction.
Disclaimer: This post is for educational purposes only and does not constitute financial advice. The analysis is based on market data and reports, which are subject to change. Investment in securities markets are subject to market risks. Please read all related documents carefully and consult a SEBI registered financial advisor before investing. The author and the platform accept no liability for any losses incurred.