Closing Bell 05 December 2025: Markets Cheer Broad-Based Rally as Nifty Reclaims 26,100
Updated: 05 Decmber 2025
Category: Closing Bell | Market Analysis
By CapitalKeeper Research Desk
Indian stock market ended sharply higher on 05 December 2025 with Nifty closing at 26,186.45 and Sensex at 85,712.35. Bank Nifty surged past 59,700 while financials led the rally. Read the full Closing Bell report with global cues, sector performance, and technical outlook.
Indian Market Soars After Two Days of Consolidation
The domestic market closed on a buoyant note on 05 December 2025, snapping its brief consolidation phase and pushing higher across all major indices. Strong institutional buying, improving global sentiment, and a recovery in banks and financials supported the day’s rally.
The upward momentum was visible right from the opening bell, and unlike previous sessions, the market sustained its gains throughout the day without large intraday volatility. Traders and short-term participants positioned themselves ahead of next week’s key macro events, giving indices an additional boost.
Key Index Performance: 05 December 2025
| Index | Open | Close | % Change |
|---|---|---|---|
| Nifty 50 | 25,999.89 | 26,186.45 | +0.72% |
| Sensex | 85,125.48 | 85,712.35 | +0.69% |
| Bank Nifty | 59,133.20 | 59,777.20 | +1.09% |
| Fin Nifty | 27,533.45 | 27,811.90 | +1.01% |
The sharpest gains were seen in Bank Nifty and Fin Nifty, reflecting renewed strength in private banks, NBFCs, and financial services.
Global Market Cues: Sentiment Turns Constructive
US Markets
Overnight U.S. markets closed slightly higher as Treasury yields softened on improving inflation expectations.
- Dow Jones and S&P 500 futures were trading marginally positive during Indian market hours.
- Investors increased bets on a potential 25 bps rate cut in the upcoming Fed meet.
European Markets
European indices traded with a positive bias, supported by better PMI readings from Germany and France.
- Banking and consumer sectors outperformed.
Asian Markets
Asian markets also ended the day mixed-to-positive:
- Nikkei extended gains on tech support
- Hang Seng staged a mild rebound
- Kospi saw profit booking
Against this global backdrop, Indian markets outperformed peers.
Sectoral Performance: Financials Lead, IT Sees Mild Uptick
Top Performing Sectors:
- Banking
- Financial Services
- Automobiles
- FMCG
Underperformers:
- Pharma (marginal profit booking)
- Media (weak earnings sentiment)
Banking & Financials Power the Rally
Expectations of improved credit demand, stable asset quality, and steady deposit growth supported private banks. Heavyweights such as HDFC Bank, ICICI Bank, Kotak Bank, and Bajaj Finance contributed significantly to index gains.
Stock-Specific Highlights
Heavyweights That Boosted Nifty:
- Reliance Industries: Strong buying interest on O2C recovery
- ICICI Bank: Firm throughout the day; led Bank Nifty
- HDFC Bank: Broke recent resistance levels
- Infosys & TCS: Benefited from weaker rupee
- ITC & HUL: Demand for defensive names
Stocks Under Pressure:
- Divi’s Lab
- Cipla
- ZEE Entertainment
- JSW Steel (mild correction on global metal softness)
Technical Overview
Nifty 50 Technical Setup
The index formed a strong bullish candle on the daily chart, breaking above the previous day’s resistance zone near 26,100.
Key Levels to Watch:
- Support: 26,050 – 25,920
- Resistance: 26,250 – 26,340
RSI (Daily): Trending near 63, indicating healthy bullish momentum without being overbought.
MACD: Line has crossed above signal — positive crossover supports further upside.
Bank Nifty Technical Setup
Bank Nifty reclaimed the 59,700 mark and ended near the day’s high—its strongest close in the last 12 sessions.
Key Levels:
- Support: 59,300 – 59,050
- Resistance: 59,900 – 60,200
RSI: Near 60, showing strength.
MACD: Positive and expanding — indicates sustained upward interest.
Sensex Technical Setup
Sensex continued to remain in a rising channel and closed comfortably above 85,700.
- Next upside target: 86,100–86,250
- Immediate support: 85,200
Fin Nifty Technical Setup
Fin Nifty outperformed Nifty, closing above 27,800.
- Next Resistance: 27,950
- Support: 27,550
Strong buying in insurance and NBFC names propelled the index higher.
Market Breadth & Volumes
- Advances: 1,244
- Declines: 876
- Unchanged: 97
Market breadth favored bulls, and volumes remained above the monthly average, indicating strong participation from both DIIs and retail traders.
Broader Market View
Midcap and smallcap indices also participated:
- Nifty Midcap 100: +0.45%
- Nifty Smallcap 100: +0.38%
However, selective buying suggests traders are still cautious due to elevated valuations.
What Triggered Today’s Rally?
1. Global Stability
Improving risk appetite globally supported flows into emerging markets.
2. Optimism Ahead of Key Events
Today RBI policy meeting and Next week’s U.S. Fed commentary have increased speculative positioning.
3. Sector Rotation
Money rotated back into financials after three days of muted performance.
4. Strength in Heavyweights
Index heavyweights led the rally, creating a broad-based impact.
Outlook for Next Week (08 December 2025)
Markets may attempt to extend the rally but could face profit booking near upper resistance levels.
Nifty Outlook
- Expected range: 26,050–26,300
- Bias: Bullish with caution
Bank Nifty Outlook
- Expected range: 59,300–60,050
- Bias: Strong bias towards upside
Global cues, especially U.S. payroll data, will remain crucial.
Internal Links for CapitalKeeper.in
- Pre-Market Analysis
- Nifty & Bank Nifty Technical Outlook
- Weekly Market Wrap
- Educational Series: RSI & MACD Explained
FAQs: Indian Market Closing Bell (05 Dec 2025)
1. Why did the market rally today?
Broad-based buying in financials, strong global cues, and renewed institutional interest supported the rally.
2. Which sectors performed the best?
Banking, financial services, automobiles, and FMCG led the market.
3. Is Nifty likely to continue its upward move?
Technical indicators suggest strength, though resistance near 26,250 could trigger mild profit booking.
4. Did global markets influence today’s rally?
Yes, U.S. futures, European PMI numbers, and Asian stability contributed to positive sentiment.
5. What should traders watch tomorrow?
RBI policy cues, global macro data, and price action near resistance zones.
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Ranjit Sahoo
Founder & Chief Editor – CapitalKeeper.in
Ranjit Sahoo is the visionary behind CapitalKeeper.in, a leading platform for real-time market insights, technical analysis, and investment strategies. With a strong focus on Nifty, Bank Nifty, sector trends, and commodities, she delivers in-depth research that helps traders and investors make informed decisions.
Passionate about financial literacy, Ranjit blends technical precision with market storytelling, ensuring even complex concepts are accessible to readers of all levels. Her work covers pre-market analysis, intraday strategies, thematic investing, and long-term portfolio trends.
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