Stock Market Outlook: Sensex, Nifty May Extend Gains; Upside Seen Towards 25,500, Realty & PSU Banks in Focus

Indian stock markets are expected to trade with a positive bias on Thursday, October 16, following a strong rebound in the previous session and supported by improving global cues. Analysts believe the momentum may extend further, with the Nifty eyeing the 25,500 mark amid broad-based buying interest and optimism surrounding the ongoing Q2FY26 earnings season.

Stock Market Outlook For 16 October 2025

Indian equity markets snapped a two-day losing streak and ended higher on Tuesday, buoyed by positive global cues and expectations of a pause in U.S. interest rate hikes. The benchmark indices surged, led by broad-based buying across sectors, with Realty, Power, and PSU Bank stocks among the top gainers.

Sensex Prediction Today

The BSE Sensex climbed 575.45 points, or 0.70%, to close at 82,605.43, while the NSE Nifty rose 178.05 points, or 0.71%, to settle at 25,323.55. This rebound comes on the back of dovish comments from the U.S. Federal Reserve Chair, which signaled the possibility of a pause in quantitative tightening, lifting investor sentiment globally.

Stocks in Focus Today: Sector-wise Stocks Performance Trends

Sectorally, all indices except Media ended in the green. The Nifty Realty index jumped 3%, followed by gains of 1-2% in Power, Consumer Durables, PSU Bank, Metal, and Telecom. The broader markets also witnessed renewed strength, with the Nifty Midcap 100 advancing 1.11% and the Smallcap 100 gaining 0.82%.

Nifty Prediction Today: What Traders Can Expect?

According to Bajaj Broking, "The index formed a bullish candle with a higher high and higher low, signaling lack of follow-through to the previous session's bearish engulfing candle. This highlights a continuation of the positive momentum."

The firm noted that the Nifty managed to cross the previous week's high of 25,330 in Tuesday's session, indicating the formation of higher highs on the weekly chart - a signal of a sustained upward bias.

"On the higher side, the index could extend the current up move towards 25,450-25,500 levels, which represent the trendline resistance connecting the major highs of September 2024 and July 2025," Bajaj Broking added.

On the downside, immediate support is seen around the 25,000-25,100 zone, which coincides with a prior swing low and aligns with both the 20-day and 50-day exponential moving averages (EMAs). "Index sustaining above the same will keep the short-term bias positive," the brokerage said.

In the banking space, the Bank Nifty also registered gains, forming a bullish candle with a higher high and higher low, further confirming upward momentum. Bajaj Broking highlighted that stock-specific action within the index will remain in focus as Q2FY26 earnings continue to roll in.

"Bank Nifty has immediate resistance at 57,000. A move above this level could open further upside towards the all-time high placed around 57,600," the firm noted. Support for the index is seen around 56,200-56,000, and holding above this range is likely to sustain the positive bias.

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