Stock Market Outlook Today 23 December 2025: Sensex, Nifty Likely to Trade Higher; Bank Nifty Shows Resilience

Indian equity markets are expected to open on a positive note on Tuesday, 23 December 2025, supported by sustained foreign investor inflows, a stronger rupee and optimism over potential rate cuts by the U.S. Federal Reserve. With the Sensex closing above 85,500 and Nifty holding above 26,150 in the previous session, analysts anticipate continued bullish momentum in the early trade.

Stock Market Outlook Today, 23 December 2025: Sensex, Nifty Trade Setup

Key sectors like IT, Metals, and Chemicals are likely to lead gains, while Consumer Durables may see some consolidation. Traders are advised to watch intraday support at 26,050 for Nifty and 58,500 for Bank Nifty, with upside resistance near 26,325 and 60,100, respectively.

Market breadth remained healthy, with most sectors participating in the rally, led by IT, Chemicals and Metals, while Consumer Durables was the only underperformer. The broader market also delivered strong gains, with the Nifty Midcap rising 0.84% and the Nifty Smallcap gaining 1.17%, reinforcing positive market sentiment.

FII Inflows and Macroeconomic Optimism Drive Markets

Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, "Indian equities extended their rebound for the second straight session on Monday, supported by a firmer rupee and sustained FII buying over the past three days. Nifty50 closed higher by 206 points at 26,172 (+0.8%). The broader market witnessed healthy participation, with the Nifty Midcap100 and Smallcap100 indices gaining 0.8% and 1.2%, respectively."

He added, "Sectorally, market breadth remained positive with most Nifty sectoral indices ending in the green. IT and metals led the rally, rising 2.1% and 1.4%, respectively. Optimism around potential further rate cuts by the US Federal Reserve and a sharp rise in Infosys ADRs drove the Nifty IT index higher for the fourth consecutive session."

Additionally, strong buying interest was seen in railway and defence stocks, driven by expectations from the upcoming Union Budget, particularly around capital expenditure and new project announcements.

On the macroeconomic front, investors will track the UK Q3 GDP data today, followed by US Q3 GDP and Consumer Confidence data tomorrow, which may influence sentiment in global and domestic markets.

Nifty Prediction Today: Check Technical Outlook for Nifty50 on Tuesday

Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd, highlighted, "Technically, on the daily chart, Nifty formed a big bullish candle and decisively crossed the short-term barrier of 26,050. The next major hurdle for the index is placed in the 26,250-26,325 zone, while immediate support has now shifted to the 26,050 level. Short-term traders are advised to book profits on a bounce near 26,250-26,325, while waiting for a fresh breakout above the 26,325 level."

Bajaj Broking Research echoed a positive bias for the Nifty. The index formed a strong bullish candlestick pattern with a higher high and a higher low, signaling extension of the up move after breaking above a falling trendline joining recent highs.

"Nifty extended its up move for the third session in a row and is likely to move higher towards the upper band of the last three weeks' range placed around 26,300 levels. Only a breakout on a closing basis above 26,300 will open further upside towards 26,500 levels. Immediate support is placed at Monday's gap-up area of 26,000 levels, holding above which will keep the bias positive, while short-term support is placed around 25,700-25,800 levels," said Bajaj Broking Research.

Bank Nifty Outlook Today, December 22, 2025

The banking sector is also showing resilience. According to Bajaj Broking, Bank Nifty formed a small bull candle with a higher high and higher low, signaling continuation of the up move amid stock-specific action. Bank Nifty remains resilient, with buying emerging on declines, supported by notable strength in PSU banks and steady participation from private banks.

"We expect the index to extend consolidation and form a base in the range of 58,500-60,100 in the coming weeks. A strength above last week's high of 59,533 will open upside towards the recent all-time high of 60,100 levels. Key support is placed at 58,300-58,600 levels, being the confluence of the 50-day EMA and recent breakout area," it stated.

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