Nifty Powers 20-day EMA Comeback as IT Brings Strength

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In a compelling display of market dynamics, a fierce struggle between bulls and bears ensued. Ultimately, the Nifty50 index snapped its losing streak.

By S JHA

Mumbai, December 4, 2025 — The Indian equity markets rode a thrilling and volatile waves to end the four-day losing streaks. Gains in the stock markets came a day ahead of the key policy announcement by the Reserve Bank of India.

The IT stocks extended their gains for the second day. Traders took positions in the IT counters amid the sense that a weak Rupee will boost revenue of the companies. The IT firms mostly earn in the foreign currencies, especially dollar.

“From a technical perspective, the 20-day EMA has demonstrated its significance by contributing to the stabilization of the benchmark,” said Angel One in a market note sent to clients. It added that the overall market breadth remains bleak. The advance-decline ratio is skewed towards bearish performance.

But the resilience exhibited by key indices at lower levels signifies a degree of stability, added the New Delhi-based brokerage. “On the levels front, the subzone of 25900-25850 serves as a pivotal support zone, expected to cushion any near-term shortcomings,” it added.

Analysts have also been claiming that Nifty could dive deeper if the crucial support of 25900 fails to hold. “On the flip side, the resistance zone between 26100 and 26150 constitutes a significant barrier, and sustained movement exceeding this zone is anticipated to build momentum toward the subsequent resistance levels around 26250-26300 in the forthcoming period,” added Angel One.

Nifty broke its four-day losing streak on Thursday, ending with gains of 49 points on mild short covering. “Market breadth improved: 33 gainers vs 17 losers, while the IT led the rebound, jumping 1.4%,” added the brokerage.

“In a compelling display of market dynamics, a fierce struggle between bulls and bears ensued. Ultimately, the Nifty50 index snapped its losing streak, closing above the significant 26000 threshold,” it added.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)