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Below the Market Commentary (closing) for 18th December 2025 by Bajaj Broking

Market Closing Commentary

Indian equity benchmarks closed flat in a volatile session on December 18. The index rose in the first half to an intraday high of 25,902 but gave up gains later as selling pressure emerged in the latter half of the day. Investor focus now shifts to the Bank of Japan’s policy decision due on December 19, with markets factoring in a 25-bps rate hike.

By the close, the Sensex dipped 77.84 points (0.09%) to 84,481.81, while the Nifty was marginally lower by 3 points (0.01%) at 25,815.55. Broader markets outperformed, with the midcap index gaining 0.34% and the small-cap index rising 0.13%.

On the sectoral front, realty stocks edged up 0.3%, while IT emerged as the top performer, rising over 1%, supported by selective buying and currency-related tailwinds. In contrast, auto, media, pharma, oil & gas, and capital goods stocks remained under pressure, shedding between 0.3% and 1%.

Nifty Outlook

The index formed a small bull candle with long shadows in either direction signaling consolidation amid high volatility. The index however maintained lower high and lower low highlighting corrective bias. Nifty has strong support in the 25,700–25,800 zone, backed by the 50-day EMA, last week’s low, and an important retracement level. Holding above the support area is important for any near-term rebound. If the index closes below this support area, it will further open downside toward the 100 days EMA placed around 25,500–25,400 levels. On the upside, immediate resistance lies near 26,000, where a trendline from the past two weeks’ highs is placed. Only a clear move above this level could lift Nifty toward the 26,200–26,300 range.

Bank Nifty Outlook

Bank Nifty has formed a small bullish candlestick pattern with a long upper shadow highlighting consolidation amid stock specific action. Index on expected lines is seen consolidating and forming a base in the range of 58500-60100. 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 60100 in the coming week.

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