Stock Market Outlook Today, Feb 25: Sensex, Nifty to Remain Volatile After F&O Expiry; Eurozone CPI To Watch

Indian equity markets are expected to remain volatile on Wednesday, February 25, after benchmark indices snapped their two-session winning streak on monthly derivatives expiry, weighed down by sharp losses in IT stocks and cautious global cues.

Stock Market Outlook Today, 25 February 2026: Sensex, Nifty Prediction Today

On February 24, coinciding with the monthly Nifty F&O expiry, markets ended sharply lower amid concerns over AI-led disruption in the IT sector. Heavy selling pressure dragged the Nifty below the 25,450 mark during the session, after it opened weak below 25,650 and slipped further to an intraday low near 25,350.

By the close, the Sensex plunged 1,068.74 points (1.28%) to 82,225.92, while the Nifty fell 288.35 points (1.12%) to settle at 25,424.65. Broader markets also remained under pressure, with the Nifty Midcap index easing 0.3 percent and the Smallcap index declining 0.55 percent, reflecting cautious sentiment beyond frontline stocks.

Sectorally, IT stocks were the worst hit, tumbling more than 4 percent as investors reassessed long-term growth prospects amid rapid AI adoption. Realty stocks also declined over 2 percent. In contrast, metals, pharma, PSU banks, oil & gas and energy stocks outperformed the broader market, posting modest gains of 0.3 to 1 percent and offering some downside support.

Eurozone CPI in Focus Today: Key Factor To Watch

"Looking ahead, markets are expected to remain volatile within a broader range, driven by mixed global and domestic cues," Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd. noted, adding that investors will closely track Eurozone CPI today after US consumer confidence data for further direction.

Nifty Prediction Today, 25 February 2026

From a technical perspective, analysts at Bajaj Broking highlighted that the Nifty's recent decline has weakened near-term momentum. "The index formed a bearish candle with a lower high and lower low as it gave up its last two sessions' gains, signaling selling pressure on the monthly expiry session," they said.

According to Bajaj Broking, the Nifty has been consolidating in a 25,350-25,900 range over the past eight sessions, and a decisive breakout or breakdown from this zone will determine the next directional trend. A breach below 25,327 could open further downside towards the 200-day EMA and the gap area around 25,100-25,200, while immediate resistance remains near 25,642. Failure to move above this level may keep the short-term bias corrective.

Bank Nifty Outlook For February 25, 2026

Meanwhile, the outlook for Bank Nifty remains relatively constructive despite near-term consolidation. "Bank Nifty formed a small bearish candle with a small real body and a long lower shadow, signaling consolidation amid stock-specific action," Bajaj Broking said, noting continued outperformance in PSU banking stocks.

Analysts believe the bias for Bank Nifty remains positive, with dips likely to attract buying interest. Key short-term support is seen in the 60,500-60,200 zone, while the index is expected to trade within a 60,000-61,750 range in the near term. A decisive move beyond this band could trigger fresh directional momentum, though volatility is expected to stay elevated amid uncertain global cues.

Overall, experts suggest that while broader market sentiment remains cautious, selective buying, sector rotation and global data cues will play a crucial role in shaping Sensex and Nifty movements on Wednesday, February 25.

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