Morning Action @ 7:00 AM — Thursday, December 11th 2025.

# The Numbers are in and the verdict is out…

# The Numbers: As widely expected, the US Federal Reserve announced a 25 bps interest rate cut to its benchmark rate to 3.5%–3.75%, marking the lowest level since 2022.

Fed however signalled a tougher road ahead for further reductions.

There was no shortage of drama, however, stemming from the FOMC’s forward-looking projections on rates and inflation. Chair Jerome Powell noted that economic activity is expanding slowly, job gains have cooled, and unemployment has inched higher, while inflation remains largely unchanged.

This marks the Fed’s final rate cut of the year — and potentially the final one under Powell’s tenure. With a split committee and diverging projections, Powell had to carefully manage a divided vote. His successor, whether Kevin Hassett or another candidate st

# The Verdict: Wall Street gains after the Federal Reserve votes for final rate cut. Small caps led the charge as the Russell Index hit a fresh all-time high, while the Dow closed with a solid 1% gain. Even Gift Nifty seen moving higher.

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty: (+47, 25967)
Dow Futures: (+15, 48073)
Nasdaq 100 Futures (-130, 25648)

Nikkei (-13, 50590)
Hang Seng (+170, 25711)

Dow Jones (+497, 48058)
Nasdaq Composite (+78, 23654)
Bovespa (+1094, 159075).

# MARKET TRENDS:
Global cues: Positive
FII: (-1651.10 crores)
DII: (+3752.30 crores)
Sentiment: Risky
Market Breadth: Negative
Technicals: Weakening Momentum
F&O: 25500 - 26500 zone.

INDIA VIX 10.91 (-0.37%)
USD/INR Futures (December) (90.13)
NIFTY PCR (30th December) 1.00
Bank Nifty PCR (30th December) 0.81

# Nifty Outlook: Brace for a session clouded by weak sentiment and downside bias, as the market tone remains distinctly pessimistic — Caution should prevail on any excessive strength.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 25758):
SUPPORT: 25689/25318
RESISTANCE: 26103/26326
RANGE: 25650-25950
BIAS: Negative
21 DMA: 26016
50 DMA: 25692
200 DMA: 24690

SENSEX (CMP 84391)
SUPPORT: 84000/82670
RESISTANCE: 85700/86200
RANGE: 84000-85000
BIAS: Negative
21 DMA: 85082
50 DMA: 83916
200 DMA: 80962

BANK NIFTY (CMP 58960)
SUPPORT: 58700/57157
RESISTANCE: 59800/60200
RANGE: 58000-59500
BIAS: Negative
21 DMA: 59140
50 DMA: 57959
200 DMA: 55125

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

U.S. equity benchmarks opened higher and maintained their strength throughout Wednesday’s session, sailing through the widely anticipated rate-cut announcement, Fed Chair Jerome Powell’s press conference, and the closing bell. The S&P 500 and Nasdaq Composite swung through the session but ultimately rallied, supported by what many investors view as a “Goldilocks” backdrop for the U.S. economy.

Following the third quarter-point cut since September, the federal funds rate now stands in the 3.50%–3.75% range.

By the close, the Dow Jones Industrial Average climbed 1.1% to 48,057, the S&P 500 advanced 0.7% to 6,886, and the Nasdaq Composite added 0.3% to 23,654.

# Gold prices ($4239 per ounce) gained, testing October highs where prices hit their highest on record, as markets parsed the Federal Reserve decision and digested Chair Powell’s post meeting remarks.

Meanwhile, gold is up nearly 61% this year and pacing toward its strongest annual performance since 1979.

# WTI crude oil futures ($58.35) traded with negative bias, nearing monthly lows pressured by a firmer dollar and fresh signs of softer fuel demand.

# STOCK MARKET NEWS:

# In yesterday’s session, Nifty opened on a strong note and held firm through the first half, climbing comfortably above the dotted line. However, the index later gave up all its gains, closing the day on a jittery and unstable footing.

# THE GOOD NEWS: Fed Ends the Year with Another Quarter-Point Cut.

Fed however signalled a tougher road ahead for further reductions.

Wall Street gained after the Federal Reserve votes for final rate cut. Even Gift Nifty seen moving higher.

# THE 2-KEY SENTIMENT DAMPENER:

1) Rupee weakness against USD continues to be on front pages as it weakens near 90.13/USD.
2) Relentless FII Selling: YTD FII outflows have swollen to ₹1,48,939 crore.

# ANY STOCK/SECTOR SPECIFIC THEME?
1) Eternal emerged as the biggest loser in yesterday’s trade. (Eternal CMP -2.90%, ₹283.25)

Blinkit CEO Albinder Dhindsa has cautioned that India’s quick-commerce boom may be nearing a tipping point. His remarks come on the same day rival Swiggy launched its QIP to raise about ₹10,000 crore, while another competitor, Zepto, has converted into a public company ahead of a planned IPO next year.

Notably, Zomato had raised nearly ₹8,500 crore through a QIP in November last year at a floor price of ₹265.91 per share. Swiggy’s QIP has been priced with a floor of ₹390.51 per share. Meanwhile, Eternal — Zomato’s parent — has also infused around ₹600 crore into the company’s quick-commerce vertical.

# What Technicals Tells Us On Nifty:
Technically, Nifty’s near-term setup remains fragile as long as it hovers below the all-time high of 26,326, with sellers actively capping every bounce.

While bears continue to dictate momentum, the crucial support at 25,703 remains the line in the sand — a breakdown below this level could accelerate downside pressure.

# STOCKS IN SPOTLIGHT:

1) Zomato (CMP -2.90%, ₹283.25)

Blinkit CEO Albinder Dhindsa has cautioned that India’s quick-commerce boom may be nearing a tipping point. His remarks come on the same day rival Swiggy launched its QIP to raise about ₹10,000 crore, while another competitor, Zepto, has converted into a public company ahead of a planned IPO next year.

Notably, Zomato had raised nearly ₹8,500 crore through a QIP in November last year at a floor price of ₹265.91 per share. Swiggy’s QIP has been priced with a floor of ₹390.51 per share. Meanwhile, Eternal — Zomato’s parent — has also infused around ₹600 crore into the company’s quick-commerce vertical.

2) InterGlobe Aviation (CMP -3.17%, ₹4810),

InterGlobe Aviation, the operator of IndiGo, fell hard after the government directed the airline to trim 10% of scheduled flights following more than 2,000 cancellations last week.

3) TCS to acquire Salesforce consulting firm Coastal Cloud for $700 million
This will be the IT services giant's second acquisition in less than three months. In October, TCS said it was acquiring US-based ListEngage MidCo for $72.8 million

(Source: liveMint, Moneycontrol, business Standard)

# Now, here is the preferred trade on Nifty and Bank Nifty:

Nifty (25758): Sell between 25900-25950 zone. Stop 26591. Targets 25689/25501. Aggressive targets at 25318-25400 zone.

Bank Nifty (58960): Sell between 59400-59500 zone. Stop at 60781. Targets 58700/58100. Aggressive targets at 57157-57300 zone.

# Our chart of the day is bullish on CHOLAMANDALAM FINANCE, PONDY OXIDES & CHEMICALS, and DREDGING CORPORATION on any early excessive intraday weakness with an interweek/Intermonth perspective.

# The 1 Stock to Sell Right Now: Sell CDSL (1479): Sell at CMP. Stop at 1533. Targets 1429/1389. Aggressive targets at 1321. (Interweek Strategy). Rationale: Overbought technical conditions prevail. Signalling a massive breakdown on the daily charts from a lower consolidation zone. Below its 21, 50, 100 and 200-DMA. Key interweek support 1429. Major hurdles only at 1527 mark. 200-DMA at 1492.

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