Stock Market Outlook Today, 2 Dec: Nifty May Stay Range-Bound as Rupee Hits Record Low; Bank Nifty To Lead

Indian equities are expected to open on a cautious yet positive note on Tuesday, December 2, 2025, as market sentiment remains divided between strong macroeconomic indicators and rising concerns over slowing manufacturing activity and a weakening rupee.

Stock Market Outlook Today, 2 December 2025

On Monday, the Nifty briefly hit a fresh record high of 26,325 before slipping due to profit-booking pressures, ultimately closing 0.1% lower at 26,176. The Sensex followed a similar trajectory. Broader markets stayed largely muted, with the Nifty Midcap100 flat and Smallcap100 up 0.25%.

According to Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, "Indian equities ended flat on Monday after the Nifty briefly hit a fresh record high... investors weighed strong macro data against a softer manufacturing print, which fell to a 9-month low in November."

Rupee Hits Record Low; Markets Eye Global PMI, Eurozone CPI & U.S. JOLTS Data for Direction

However, currency pressures lingered. Khemka noted that the Indian rupee hit a new record low due to muted trade flows and limited progress on U.S.-India trade discussions. Market participants are now focusing on key global data releases including manufacturing PMI numbers from major economies today, followed by the Eurozone CPI and U.S. JOLTS report tomorrow.

Khemka added, "In the near term, markets may remain range-bound as participants await clarity on the potential rate-cut trajectory and developments on the trade deal front."

Nifty Prediction Today: Expect Mild Upside but Within Range

Analysts expect the Nifty to remain in consolidation mode unless a strong breakout occurs. Bajaj Broking commented, "Index has formed a bearish candle with a similar open and high highlighting profit booking at higher levels near the all-time high. Nifty in the last three sessions is seen consolidating around the all-time high."

They added that the overall outlook remains positive and the Nifty could move toward 26,500 and 26,800 in the coming week, in line with the recent breakout above the 25,400-26,100 range. However, a sustained fall below 26,100 may indicate consolidation between 26,300-25,800. Key support remains at 26,000-25,800, and holding above these levels will keep the bullish sentiment intact.

Hrishikesh Yedve, AVP Technical & Derivative Research at Asit C. Mehta Investment Interrmediates Ltd, highlighted that Monday's market behavior reflected strong initial momentum that faded later. He said, "On the daily chart, Nifty has formed a big Opening Marubozu near the trendline resistance, indicating strong initial momentum that faded by the close."

He pegged 26,325 as the immediate resistance, with potential upside targets of 26,500-26,800 if the index manages a clean breakout. Supports remain at 26,000 and 25,840, and Yedve recommended traders should "buy near support and sell near the resistance around 26,325 while waiting for a decisive breakout."

Bank Nifty Outlook Today: Strong Momentum Continues on 2nd December 2025?

The Nifty Bank index was the standout performer of the session, crossing the 60,000 mark for the first time, supported by vigorous traction in PSU banks and expectations of synchronised rate cuts in India and the U.S. Meanwhile, sectors such as autos (+0.8%), metals (+0.6%), and IT (+0.4%) continued to show strength.

The Bank Nifty remains the strongest index and is expected to drive the broader market in the near term. Bajaj Broking noted, "Bank Nifty has formed a bearish candle with a similar open and high highlighting profit booking at higher levels near the all-time high."

They added that a move above 60,114 (Monday's high) will likely open the gates for 60,400 and 61,000 in the coming weeks. The index's rally over the last two months remains well channelled, showing sustained demand at elevated levels. Key support levels lie between 58,300-58,600, coinciding with the lows of the past two weeks and a recent breakout zone.

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