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Nifty Holds Steady as Industrial Growth Surprises Positively

Nifty Holds Steady as Industrial Growth Surprises Positively

Source: Krish Capital Pty Ltd

Index Update: The Nifty 50 Index slipped 3.25 points to close at 25,938.85, yet the broader technical outlook remains constructive. The index continues to trade above its 50-day SMA, which is acting as a key dynamic support and supporting short-term positive momentum. Immediate downside support is placed near 25,800, aligning with a falling trendline.

Macro Update: India’s industrial production rose 6.7% year-on-year in November 2025, marking a two-year high and rebounding sharply from October’s revised 0.5% growth. Manufacturing and mining drove the expansion, easing concerns over tariff-led headwinds, while electricity output contracted for a second consecutive month.

Top Market Movers: On Tuesday, Shriram Finance Ltd (NSE: SHRIRAMFIN) led the gainers with a 2.50% increase, closing at INR 979.40 followed by Hindalco Industries Ltd (NSE: HINDALCO) up 2.21% at INR 884.15 and Bajaj Auto Ltd (NSE: BAJAJ-AUTO) which rose 2.15% to INR 9,282.00. On the downside followed Max Healthcare Institute Ltd (NSE: MAXHEALTH) saw the largest drop, falling 2.19% to INR 1,040.80 followed Eternal Ltd (NSE: ETERNAL) down 2.03% to INR 277.10 and Infosys Ltd (NSE: INFY), which dropped 1.40% to INR 1,621.60.

Commodity Update: The U.S. dollar traded steady on Tuesday ahead of the Federal Reserve’s December minutes, expected to highlight policy divergences for 2026. Holiday-thinned liquidity kept currencies calm. Gold rose 0.70% to USD 4,374.05, silver gained 4.43% to USD 73.582, and copper advanced 2.24% to USD 12,484.82. Brent crude eased 0.10% to USD 61.43 despite lingering Russia–Ukraine supply concerns.

Our Stance: The near-term market stance remains cautiously constructive, supported by resilient index positioning above key technical levels and a strong rebound in industrial production. Select stock-specific gains reflect improving risk appetite, while firm metal prices and stable currency conditions provide additional support despite lingering global macro and geopolitical uncertainties.

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