Stock Market Outlook Today, Dec 10, 2025: Nifty, Sensex Likely to Trade Cautiously Ahead of US Fed Decision

Indian equities are expected to trade cautiously on Wednesday, December 10, 2025, following two consecutive sessions of losses as investors remain wary ahead of the US Federal Reserve's policy decision. The Nifty 50 slipped below the 25,900 level, while the Sensex fell over 430 points as investors awaited the outcome of the US Federal Reserve's policy meeting scheduled for Wednesday.

Stock Market Outlook Today For 10 December 2025; Nifty, Sensex Index Today

The Sensex ended the day at 84,666.28, down 436.41 points or 0.51%, while the Nifty closed at 25,839.65, down 120.90 points or 0.47%. Sectoral trends were mixed, with IT, auto, and metals leading the losses, dropping between 0.3% and 1%.

Stocks in Focus Today: Sector-wise Shares Performance Trends

In contrast, realty, telecom, capital goods, and PSU banks recorded gains of 0.5-1%. The broader market showed resilience as the midcap index edged up 0.3% and the small-cap index gained 1.1%, cushioning some of the pressure on headline indices.

Why Stock Market is Falling? Know Reasons

US Fed Interest Rate Decison and Other Global Cues: Global developments continued to influence domestic markets. Investors remained wary ahead of the US Federal Reserve interest rate decision, while reports of potential new US tariffs on Indian rice added to the uncertainty.

FII Outflows: Meanwhile, persistent FII outflows weighed on the market, with foreign investors reducing exposure amid global volatility.

Indian Rupee VS US Dollars: The Indian rupee also softened, weakening by 10 paise to Rs 90.15 in early trade due to steady demand for dollars from corporates, importers, and FPIs.

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, said, "Indian equities traded weaker on Tuesday, with Nifty recouping part of its early losses but still closing 0.5% lower, down 121 points. The index extended the previous session's slide as investors stayed cautious ahead of the US Fed rate decision and lingering uncertainty around a potential US-India trade agreement."

"Sentiment was further pressured by reports that US President Trump may consider imposing new tariffs on Indian rice, signalling that trade negotiations remain unresolved. Key economic data due today include US JOLTS job openings and China CPI. Tomorrow's US Fed interest rate decision remains the main catalyst for global markets," he added.

Nifty Prediction Today

Bajaj Broking Research highlighted technical support levels for the Nifty. The index formed a high-wave candle with a long lower shadow, indicating strong buying interest near the 50-day EMA. It has acted as a strong support in the entire current up move. Key support lies at 25,700-25,800, which aligns with the bullish gap from November 12, the 50-day EMA, and a key retracement zone of the prior uptrend. Sustaining above this band will be essential for continuing the current positive momentum.

"We expect the Nifty to trade in a 25,700-26,200 consolidation range. A clear breakout or breakdown will determine the next directional move. Short-term market drivers include the US FOMC meeting outcome, India's CPI data, and developments in the US-India trade deal," said Bajaj Broking Research.

Bank Nifty Outlook For 10 December 2025

According to Bajaj Broking Research, the Bank Nifty has formed a bullish consolidation pattern around its 20-day EMA, reflecting stock-specific action ahead of the US Fed meeting.

"The index is 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. Only a follow-through strength above the last week's high of 60,114 will open further upside towards 60,400 and then towards 61,000 levels in the coming weeks. Key short-term support is placed at 58,200-58,600 levels, being the confluence of the recent low and the major breakout area," the brokerage noted.

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