Stock Market Outlook: Sensex, Nifty to Stay Volatile, Derivatives Expiry Pressure, US Inflation Data in Focus

The Indian stock market is expected to remain volatile on 26 November 2025, as benchmark indices struggle for direction amid monthly derivatives expiry pressure, mixed global cues, and profit-booking at higher levels. On Tuesday, the Sensex and Nifty ended in the red, extending their losing streak for a third straight session, while broader markets outperformed marginally.

Stock Market Outlook Today, 26 November 2025

Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, noted the weakness in frontline indices, saying, "Indian equities witnessed a volatile session on Tuesday, with the Nifty closing at 25,884 (-0.3%)-recording losses for the last three sessions and trading with a subdued tone ahead of the monthly derivatives expiry." He added that despite the pressure on largecaps, midcaps and smallcaps managed to post marginal gains of 0.3% and 0.2%, respectively.

Stocks in Focus Today, 26 November 2025: US Inflation Data in Focus

According to Khemka, the sectoral trend remained mixed. IT stocks fell nearly 0.6%, while realty stocks surged 1.6%, supported by improved demand in the housing and commercial markets as well as easing input costs. He further highlighted that global sentiment was not strong enough to support domestic equities, even though U.S. markets gained overnight amid rising expectations of a December Federal Reserve rate cut. However, investors continue to remain cautious ahead of the upcoming U.S. inflation data release.

Nifty Prediction Today: Further Consolidation Likely on 25 November 2025

Brokerages suggest that the Nifty is likely to trade in a consolidation phase between 25,700 and 26,250 in the coming sessions. Analysts at Bajaj Broking Research noted, "Nifty has formed a third consecutive bearish candle with a lower high and lower low, signalling extension of profit booking. We expect the index to extend consolidation in the 25,700-26,250 range, forming a base for the next leg of up move."

They also point out that strong short-term support lies between 25,600 and 25,800, where the 50-day EMA and the lower band of the rising two-month channel coincide. Analysts advise using market dips to accumulate high-quality large and midcap stocks.

Hrishikesh Yedve, AVP, Technical & Derivative Research at Asit C. Mehta Investment Intermediates Ltd, echoes the bearish near-term outlook. He said, "On the daily chart, Nifty formed a big bearish candle, indicating continued weakness. As long as Nifty remains below 26,280, the index is likely to stay under pressure." Yedve added that a decisive fall below 25,710-the bullish gap zone-may accelerate further downside.

Bank Nifty Outlook Today: Positive Bias Above Key Support Zone

Bank Nifty is showing signs of consolidation but retains a positive structure. Brokerage commentary indicates that the index is stabilising above its recent breakout zone of 58,200-58,500. Analysts noted, "Overall bias remains positive above 58,200-58,500. We expect Bank Nifty to maintain momentum and move toward 59,800 in the coming weeks." The support near 58,000 is now seen as a strong cushion for the banking index.

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