Stock Market Outlook Today for December 18, 2025: Sensex, Nifty to Trade Cautiously Amid FPI Outflows

Indian equity markets are expected to trade cautiously on December 18, 2025, as investors weigh the impact of persistent FPI outflows, rupee weakness, and delays in India-US trade negotiations. After three consecutive sessions of volatility and corrective declines, the Sensex and Nifty may witness a mix of consolidation and selective sectoral strength, with key support and resistance levels likely guiding intraday moves.

Stock Market Outlook Today, 17 December 2025: Nifty, Sensex Prediction

At the close, the Sensex fell 120.21 points, or 0.14%, to 84,559.65, while the Nifty declined 41.55 points, or 0.16%, to 25,818.55. Among sectoral indices, the Nifty PSU Bank index rose 1.3% and the Nifty Metal index gained 0.25%, while the Nifty Consumer Durables and Nifty Media indices dropped 1% and 1.7%, respectively. Broader markets underperformed, with mid-cap and small-cap indices ending lower by 0.54% and 0.73%, respectively.

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Nifty Prediction Today For 18 December 2025

According to Bajaj Broking Research, the Nifty index formed a second consecutive bearish candle with a lower high and lower low, indicating extension of the corrective decline for the second session in a row.

"Nifty has key support placed at 25,700-25,800, supported by the 50-day EMA, last week's low, and a key retracement level. Holding above the same will be crucial for any pullback to materialize in the coming sessions. A breach below the support area on closing basis will open further downside towards 25,500-25,400 levels. Immediate resistance is placed around 26,000 levels being the trendline resistance joining last two weeks highs. Only a decisive move above the same could push the index higher toward 26,200-26,300 levels," the brokerage said.

From a technical perspective, Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates Ltd, said, "A firm break below 25,765 could extend the weakness towards the 25,600-25,500 levels. On the upside, 26,000-26,100 will act as an immediate hurdle. Thus, short-term traders are advised to book profits on any bounce."

Bank Nifty Outlook Today

Bank Nifty Outlook also points to consolidation in the near term. Bajaj Broking Research noted, "Index on expected lines is seen consolidating and forming a base in the range of 58,500-60,100. We expect the index to extend the current consolidation in the coming sessions. Key short-term support is placed at 58,200-58,600 levels being the confluence of the recent low and the major breakout area. On the higher side a move above 59,500 will open further upside towards the all-time high of 60,100 in the coming week."

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