Stock Market Outlook, 17 Dec: Sensex, Nifty Today Likely to Trade Cautiously Amid FII Outflows & Weak Rupee

Indian equity markets are likely to open the next trading session on 17 December 2025 on a cautious note, following a sharp decline in the previous session. The Sensex fell 533.50 points to 84,679.86, while the Nifty slipped 167.20 points to 25,860.10, weighed down by a weakening rupee that breached the 91 mark and continued foreign fund outflows.

Stock Market Outlook, 17 December 2925: Sensex, Nifty Prediction Today

Market experts expect the trend to remain volatile, with selective sectoral movements and key support-resistance levels determining the market direction in the absence of major domestic triggers.

At the close of trading on 16 December, selling pressure was broad-based, with most sectors trading under pressure. The Nifty Realty, Private Banks, IT, and Metals indices were the major drags on the market, whereas Nifty Media and Consumer Durables were the only sectors to close marginally higher, showing relative resilience amid the weakness.

Broader markets also reflected the selling trend, with the Nifty Midcap 100 declining 0.83% and the Nifty Smallcap 100 slipping 0.92%, indicating that both mid and small-cap segments were under pressure.

According to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, "Indian equities ended lower, with Nifty extending the previous session's decline as caution prevailed amid persistent FII selling and rupee weakening to new record lows. Nifty50 closed with a loss of 167 points at 25,860 (-0.6%). Broader market witnessed selling pressure with Nifty Midcap100 and Smallcap100 down -0.8% each. Amongst sectors, private banking and financial services indices were the worst performers, declining over -1% each."

Nifty Prediction Today; Check Technical Outlook By Top Analysts

From a technical perspective, Bajaj Broking Research indicated a cautious near-term outlook for the broader market. The index has formed a bearish candlestick pattern with a lower high and lower low highlighting selling pressure on the weekly expiry session. Nifty on Tuesday session reacted lower from the falling trendline joining last two weeks' highs. Failure to move above the same will keep the immediate bias corrective.

"On the higher side, immediate resistance is placed at 26,000-26,050. Only a move above the same will open further upside towards 26,200-26,300. Index has key support placed at 25,700-25,800 levels being the confluence of the 50-day EMA, last week low and key retracement of the previous up move. From a short-term perspective, Nifty is likely to extend its consolidation in the range of 25,700 to 26,300," the report stated.

Bank Nifty Outlook Today For December 17, 2025

Bank Nifty has formed a bearish candlestick pattern with a lower high and a lower low signaling profit booking at higher levels near the trendline resistance joining last two weeks' highs. 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," Bajaj Broking added.

Track Key Factors To Drive Market Sentiment Today

Market participants will also be closely tracking key US economic data, including Nonfarm Payrolls (November 2025), the unemployment rate, and monthly retail sales, which could influence global sentiment and domestic trading activity.

Overall, analysts suggest that in the absence of meaningful near-term triggers, Indian equity markets are expected to trade in a sideways to cautious range in today's session, with investors remaining wary of currency volatility and FII flows.

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