Stock Market Outlook: Sensex Nifty Likely to Consolidate; Profit Booking May Continue, IT Stocks in Focus

The Indian equity market is expected to open on a cautious note today, October 25, 2025, following a volatile and flat close in the previous session. After a strong four-week rally, investors appear to be turning selective, with profit booking at higher levels and mixed global cues keeping sentiment in check.

Stock Market Outlook Today For 25 October 2025

On Thursday, the market witnessed choppy trading as both indices gave up early gains. The Sensex ended higher by 130.06 points (0.15%), closing at 84,556.40, while the Nifty 50 edged up 22.80 points (0.09%) to settle at 25,891.40.

According to a report by Bajaj Broking Research, "The Indian equity market ended the session on a flat note, trimming early gains as investors resorted to selective profit booking amid cautious global sentiment. Uncertainty around global trade developments and the absence of fresh domestic triggers led to a profit booking."

Sector-wise, the Nifty IT index emerged as the top gainer, surging 2.21% on renewed buying interest in leading IT majors, supported by optimism around a potential India-US trade agreement. Other sectors such as Private Banks, Media, and FMCG also ended in the green, while Healthcare, Oil & Gas, and Pharma saw selling pressure. The broader market underperformed, with Nifty Midcap 100 slipping 0.06% and Smallcap 100 down 0.05%.

Nifty Prediction Today: Likely to Consolidate Between 25,600-26,100

The Nifty 50 opened above the 26,000 mark on Thursday but failed to sustain higher levels, forming a bearish candle on the daily chart. Analysts suggest the index could now enter a phase of consolidation after the recent 1,500-point rally over the past month.

Bajaj Broking Research noted, "Nifty after a sharp 1,500-point rally over the past four weeks, the stochastic oscillator on both daily and weekly charts has entered the overbought zone. This suggests the potential for a short-term consolidation or corrective pause at higher levels."

The brokerage expects the Nifty to consolidate in the 25,600-26,100 range in the near term, working off the overbought conditions. On the downside, the 25,500-25,700 zone is seen as a strong support region, aligning with the 38.2% Fibonacci retracement of the ongoing rally. Bajaj Broking added, "We believe dips towards the support area should be used as a buying opportunity."

Bank Nifty Outlook For 25 October 2025: Consolidation with Positive Bias

The Bank Nifty also mirrored the benchmark index's movement, opening strong but failing to hold gains, ending marginally higher. It formed a bearish candle on the daily chart, indicating profit booking at higher levels.

According to the research note, "The index is expected to consolidate with a positive bias, with immediate supports placed at 57,500-57,600 levels, being the last week's breakout area. A stronger demand zone is seen near 56,800-56,500, while resistance is placed around 59,000, which coincides with the 138.2% retracement of the previous decline."

From an oscillator perspective, the Stochastic indicator has reversed upward and is nearing the overbought territory, signaling a likely phase of consolidation with a positive undertone.

Key Triggers To Drive Market Sentiment Today

Adding to the outlook, Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, stated,

"Nifty50 surged past the 26,000 mark on Thursday, reclaiming the milestone after more than a year, as strong global cues and optimism surrounding a potential India-US trade agreement lifted market sentiment. However, the market cooled by 215 points from the day's highs after a roaring start into the new Samvat as investors booked profits at higher levels."

Khemka further added that the Nifty IT index was the top sectoral gainer, up over 2%, amid hopes for a favorable trade deal between India and the US. The clarification from the US Citizenship and Immigration Services (USCIS) regarding the $100,000 H-1B visa fee not applying to existing visa holders in the US also provided a positive boost to IT stocks.

In addition, textile stocks rallied on expectations of benefits from the India-US trade pact, while FMCG giant Hindustan Unilever (HUL) posted better-than-expected Q2 results, adding stability to the consumer sector. Auto stocks are also likely to stay in focus after reporting record festive sales during Diwali.

On the global front, crude oil prices rose over 4%, extending gains after the US imposed sanctions on major Russian oil suppliers Rosneft and Lukoil, adding some volatility to energy-related counters.

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