Stock Market Outlook, 22 December: Sensex, Nifty Today Poised for Range-Bound Trade; Auto, IT Stocks in Focus

Indian equity markets are expected to begin the week on a cautious yet positive note on Monday, 22 December, after benchmark indices staged a strong rebound in the previous session, snapping a four-day losing streak. Improved global cues, supported by softer-than-expected US inflation data, lifted investor sentiment and revived risk appetite across markets.

Stock Market Outlook Today, 22 December: Nifty, Sensex Prediction For Monday

On Friday, 19 December, the Sensex closed higher by 447.55 points, or 0.53%, at 84,929.36, while the Nifty50 gained 150.85 points, or 0.58%, to settle at 25,966.40. The recovery was broad-based, with all sectoral indices ending in the green.

Stocks in Focus Today: Realty, Auto, Healthcare, Chemical & IT Stocks To Watch

Realty, auto, healthcare and chemicals stocks led the rally, while other sectors posted modest gains. Broader markets outperformed the benchmarks, with the Nifty Midcap index rising 1.20% and the Nifty Smallcap index advancing 1.34%.

Commenting on the market performance, Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, said Indian equity markets ended firmly higher, supported by value buying at lower levels, renewed foreign institutional investor (FII) inflows and a marginal recovery in the rupee. "Broader markets outperformed the benchmarks, reflecting improved risk appetite," he noted, adding that sectoral participation was widespread.

Information technology (IT) stocks were also in focus, supported by positive global cues. The sector benefited from better-than-expected quarterly results from Accenture and optimism around Tata Consultancy Services after it outlined its long-term strategy to become an AI-led global technology services leader. Looking ahead, investors will closely track key global data points, including the US Personal Consumption Expenditure (PCE) price index and existing home sales data, for further direction.

Nifty Prediction Today: What Traders Can Expect on 22 December 2025

According to Bajaj Broking Research, the Nifty formed a bullish candle with a higher high and higher low, signalling positive follow-through after the recent pullback. Analysts expect the index to extend its consolidation phase, which has persisted over the past three weeks, within a broad range of 25,700 to 26,200. "A clear breakout or breakdown will determine the next directional move," the brokerage said.

The immediate resistance for the Nifty lies near 26,050, which marks last week's high. A decisive move above this level could push the index towards the upper band of the consolidation zone around 26,200-26,300. On the downside, strong support is seen in the 25,700-25,800 range, supported by the 50-day exponential moving average (EMA), recent lows and key retracement levels. Holding above this zone is expected to keep the short-term bias positive.

Bank Nifty Outlook For December 22, 2025

For Bank Nifty, Bajaj Broking Research noted that the index formed a doji candlestick pattern, indicating consolidation amid stock-specific action. Despite the lack of directional momentum, the index remains resilient, with buying interest emerging on declines. Strength in PSU banks and steady participation from private sector lenders have supported sentiment.

Analysts expect Bank Nifty to continue consolidating and form a base in the 58,500-60,100 range over the coming weeks. A sustained move above 59,500 could open the door for a retest of the recent all-time high near 60,100. On the downside, key support is placed between 58,300 and 58,600, a zone that coincides with the 50-day EMA and the recent breakout area. "Overall sentiment stays upbeat, and any dip into these support zones may act as healthy retracements and offer favourable entry points," the brokerage added.

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