Stock Market Outlook Today: Sensex, Nifty Likely to Trade Firm with Positive Bias; Bank Nifty Show Strength

Indian equity markets are expected to open on a steady note on Wednesday, 18 February 2026, as investors maintain a cautiously optimistic stance ahead of key domestic and global cues. Market participants are watching developments related to the Federal Reserve, upcoming macroeconomic data releases and ongoing geopolitical discussions, including US-Iran developments.

Stock Market Outlook Today, 18 February 2026: Sensex, Nifty Prediction

By the end of Tuesday's session, the Sensex advanced 173.81 points (0.21%) to close at 83,450.96, while the Nifty added 42.65 points (0.17%) to settle at 25,725.40. Sectoral buying was primarily seen in PSU Banks, IT, and FMCG stocks, whereas Metals and Realty faced selling pressure.

Broader market participation was also positive, with the Nifty Midcap index rising 0.27% and the Smallcap index gaining 0.56%, indicating selective interest beyond frontline stocks.

Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, said, "Nifty recovered sharply after opening lower and gaining nearly 200 points from the day's low to close at 25,725, up 42 points (+0.2%). The recovery was led by buying interest in IT shares, helping the benchmark regain lost ground. Broader markets remained firm, with Midcap and Smallcap indices advancing 0.3% and 0.5%, respectively."

He added, "PSU Banks emerged as the top gainers, climbing 2.1%. IT stocks extended gains for the second consecutive session after a recent correction, supported by Infosys' strategic partnership with Anthropic, easing concerns around AI-led disruption."

Defence stocks gained 1.3% ahead of the anticipated discussion between French President Emmanuel Macron and Prime Minister Narendra Modi on additional Rafale acquisitions. On the downside, metal stocks came under pressure, dragging the Nifty Metal index down 1%. Overall, markets are likely to remain firm with a positive bias, tracking global cues and domestic sectoral developments."

Nifty Prediction Today, 18 February 2026

Bajaj Broking analysts noted, "The index extended yesterday's bullish momentum with follow-through buying, closing decisively above its 21-day and 50-day EMAs while also filling the recent gap on the daily chart. This indicates improving short-term sentiment and renewed buying interest at lower levels. In the near term, the Nifty is likely to trade within the 25,500-26,000 range and is currently positioned near the midpoint, reflecting a balanced tug-of-war between buyers and sellers."

They added, "Immediate support is seen at 25,640, followed by 25,580, which may cushion minor pullbacks. On the upside, resistance is placed at 25,780, with the next hurdle at 25,840. A decisive breakout above these levels could trigger further upside within the broader range. Overall, the market structure remains sideways as the index consolidates following the recent correction, suggesting a base formation before the next meaningful move."

Bank Nifty Outlook

"Bank Nifty outperformed the broader market, showing notable relative strength and breaking above its recent consolidation range," Bajaj Broking said. "This confirms follow-through buying from yesterday's bullish momentum and signals improving breadth within the segment. In the near term, the index is expected to trade with a positive bias as long as it holds above the breakout zone."

They further stated, "Bank Nifty is trading above key moving averages, reinforcing the strength of the prevailing momentum. Immediate resistance is at 61,500, followed by 61,800, where some profit booking may emerge. On the downside, support has shifted higher to 60,800 and 60,500, indicating buyers are stepping in at elevated levels."

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