Stock Market Outlook 19 December: Sensex, Nifty Today To Remain Cautious as Global Central Bank Decisions Loom

Indian equity markets are expected to trade cautiously and remain range-bound on 19 December. Investor sentiment is likely to be influenced by the outcome of the Bank of Japan's policy meeting, along with interest rate decisions from other global central banks, movement in the rupee-dollar pair and foreign institutional investor (FII) activity.

Stock Market Outlook Today: Sensex, Nifty Prediction For 19 December 2025

The stock market on Thursday closed nearly flat in a highly volatile trading session as early gains fizzled out amid selling pressure in the latter half of the day. The Sensex ended the session lower by 77.84 points or 0.09% at 84,481.81, while the Nifty50 slipped marginally by 3 points or 0.01% to close at 25,815.55.

During the first half, the Nifty touched an intraday high of 25,902 before giving up gains as volatility picked up in the latter half of the session.

Stocks in Focus Today: IT, Auto, Media, Pharma, Oil & Gas, Capital Stocks To Watch

On the sectoral front, IT stocks emerged as the top performers, rising over 1%, aided by selective buying and favorable currency movements. Realty stocks also edged higher by 0.3%. In contrast, auto, media, pharma, oil & gas, and capital goods stocks remained under pressure, declining between 0.3% and 1%.

Shares of asset management companies witnessed notable gains after the Securities and Exchange Board of India (SEBI) approved changes to the mutual fund fee structure, a move aimed at easing compliance norms and reducing cost pressures.

Market to Consolidate Amid Rupee Performance & Global Cues

Commenting on the market performance, Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, said Indian equities remained lacklustre for the fourth consecutive session, with the Nifty ending sideways.

He noted that the Indian rupee showed signs of rebound, while foreign institutional investors (FIIs) turned net buyers for the first time in December, purchasing equities worth Rs 1,172 crore, offering some relief after weeks of persistent selling. He added that the market is likely to consolidate, tracking INR-USD movement, FII flows, and global macroeconomic data.

On the global macro front, investors are awaiting key announcements, including interest rate decisions from the Bank of England (BoE) and the European Central Bank (ECB), along with US retail inflation and jobless claims data. Meanwhile, the Bank of Japan has begun its two-day policy meeting, with expectations of a rate hike from 0.5% to 0.75% on Friday.

Nifty Prediction Today

According to Bajaj Broking Research, the Nifty50 formed a small bullish candle with long shadows, indicating consolidation amid heightened volatility. However, the index continues to form lower highs and lower lows, pointing to a corrective bias.

The Nifty has strong support in the 25,700-25,800 zone, backed by the 50-day exponential moving average (EMA), last week's low, and key retracement levels. A decisive break below this support could push the index toward the 25,500-25,400 range, where the 100-day EMA is placed.

On the upside, immediate resistance is seen near 26,000, and a sustained move above this level could drive the index toward 26,200-26,300.

Bank Nifty Outlook Today, 18 December 2025

For the Bank Nifty, analysts of Bajaj Broking Research noted the formation of a small bullish candlestick with a long upper shadow, highlighting stock-specific action and consolidation. The index is expected to trade within the 58,500-60,100 range in the near term. Key support lies at 58,200-58,600, while a move above 59,500 could open the door for a retest of the all-time high of 60,100 in the coming week.

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