Stock Market Outlook: Sensex, Nifty to Trade Firm After US Fed Rate Cut by 25 bps; Market Eyes 25,500 Level

Indian stock market benchmark indices Sensex and Nifty 50 are expected to open on a positive note on Thursday, September 18, 2025. The optimism follows the U.S. Federal Reserve's decision to cut interest rates by 25 basis points, bringing the benchmark rate down to a range of 4% to 4.25%.

Stock Market Outlook Today for September 18 After Fed Rate Cut By 25 bps

The move has boosted global investor sentiment, with Indian markets likely to mirror the upbeat trend. The Gift Nifty, a key indicator of Indian market sentiment, was trading around the 25,512 level, which is nearly 88 points higher than the previous close of Nifty futures, suggesting a positive start for domestic indices.

On Wednesday, the Indian equity market closed in the green, with the Nifty 50 ending above the 25,300 mark. The Sensex rose by 313.02 points, or 0.38%, to close at 82,693.71, while the Nifty 50 settled 91.15 points, or 0.36% higher at 25,330.25.

The upward momentum was supported by positive cues from US‑India trade talks and expectations of a Fed rate cut, which materialised later in the day.

According to analysts at Bajaj Broking Research, Indian equity markets ended positively on Wednesday, driven by optimism surrounding India‑US trade negotiations and anticipation of a rate cut from the US Federal Reserve. The Sensex and Nifty posted gains as investors responded positively to what was described as a "constructive" and "forward-looking" round of talks between Indian and American officials.

Stocks in Focus: Sector-wise Stocks Performance Trends

Sectors such as PSU Banks led the rally, gaining 2.6%, followed by notable buying in Auto, Information Technology (IT), and Oil & Gas stocks, each rising between 0.5% to 1%. However, not all sectors performed equally - FMCG, Consumer Durables, Power, Telecom, and Metals ended the session in the red.

The BSE Midcap index ended flat, showing mixed sentiment in mid-sized companies, while the BSE Small Cap index edged higher by 0.3%.

Sensex, Nifty Prediction Today: Technical Outlook

The Nifty has formed a bull candle with a higher high and higher low, accompanied by a bullish gap between 25,240-25,270, indicating potential for further upward movement. A recent bullish crossover of the 20-day and 50-day EMAs strengthens the case for a positive bias as per Bajaj Broking.

The index closed above its immediate resistance at 25,250, suggesting a possible up-move toward the 25,500 level in the near term. On the downside, support is seen near 24,850, which coincides with the 20- & 50-day EMAs and a key trendline breakout. Holding above this level will likely keep the short-term trend positive.

Bank Nifty Technical Outlook

Bank Nifty extended its pullback rally for the 11th straight session, forming a strong bull candle with a higher high and higher low. The index continues to hold above its 50-day EMA and recently tested resistance near the 55,500 mark.

"A follow-through strength will open further upside towards 56,000-56150 levels in the coming sessions being the 61.8% retracement of the entire decline (57628-53561). On the downside, immediate support is placed at 54,800 levels, being the 20- and 100-days EMA. While key support is placed at 54000 levels being the confluence of the last week low and key retracement of the current pullback," Bajaj Broking commentary.

Disclaimer

The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.