The Nifty index exhibited mixed trading behavior during Tuesday's session, opening on a positive note but failing to sustain momentum throughout the day. Market participants witnessed a relatively subdued trading environment as the benchmark index remained confined to a narrow range.

Trading Range and Price Action

The index's movement was characterized by limited volatility, with the entire session's trading confined to a narrow band of approximately 100 points. This restricted range suggests cautious market sentiment and limited conviction among traders.

Technical Pattern Formation

The day's price action resulted in the formation of a Doji-like candlestick pattern on the daily chart. This technical formation is significant as it typically indicates indecision among market participants, reflecting a balance between buying and selling pressure.

Market Dynamics

Despite the positive opening, the Nifty experienced some weakness during the final hour of trading, which prevented any meaningful gains for the session. The index ultimately closed on a flat note, reflecting the overall indecisive nature of the trading session.

Interestingly, the broader trend shows that Nifty has been making higher highs, suggesting an underlying bullish structure despite the day's lackluster performance. This pattern indicates that while short-term momentum may be subdued, the medium-term trajectory remains constructive for the benchmark index.

Indian equity markets opened higher on Wednesday, with the Sensex and Nifty building on positive momentum driven by stronger-than-expected US economic growth data. The optimism was supported by favorable global cues, though tempered by continued foreign fund outflows and thin year-end trading volumes.

Market Performance

Indian benchmarks showed steady gains in early trading, with both indices advancing on broad-based buying interest.

Broader markets remained marginally firmer, with both mid-cap and small-cap indices rising 0.10% each. On the Sensex, NTPC, Trent, Bajaj Finance, Adani Ports and Axis Bank emerged as top gainers, advancing between 0.60% and 1.00% in early trade.

Individual Stock Movements

Several stocks witnessed significant movements based on corporate developments and sector-specific factors.

Global Market Strength

Asian markets rose on Wednesday, tracking Wall Street's strong performance and positioning for a robust year-end close driven by artificial intelligence optimism. The S&P 500 ended at a record as a long-awaited Santa Claus rally took hold, with US data showing much stronger-than-expected third-quarter growth lifting risk appetite.

Commodity and Currency Updates

Precious metals remained standout performers in early Asian trading. Spot gold climbed 0.80% to a record $4,524.00 per ounce, taking its annual gain to 72.00%. Silver rose 1.20% to an all-time high of $72.27 per ounce, on track for an almost 150.00% annual jump.

The Indian rupee opened at 89.56 against the US dollar, up 0.10% from its previous close, supported by a weaker greenback and improving global risk sentiment. The dollar index fell to 97.75 in Asian trading, marking a two-month low.

Oil prices edged higher with Brent crude futures rising to $62.42 per barrel and US West Texas Intermediate adding to $58.41 per barrel, extending gains on strong US economic data and supply disruption concerns.

Investment Flows and Expert Outlook

Foreign Institutional Investors remained net sellers, offloading equities worth ₹1,795.00 crore, while Domestic Institutional Investors provided strong support as net buyers worth ₹3,812.00 crore.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that as the year draws to a close, the market appears to be moving to a consolidation phase with an upward bias. He highlighted that strong domestic macros and supportive earnings growth expectations will provide fundamental support, while sustained domestic inflows and consistent DII buying will impart market resilience. The RBI's decision for an additional OMO of ₹2.00 lakh crore will significantly enhance liquidity and benefit banking stocks, he added.