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Below the Market Commentary (closing) for 16th December 2025 by Bajaj Broking

Market Closing Commentary

The Indian equity market extended its losses after opening in negative territory, weighed down by a sharp depreciation in the Indian rupee, which breached the 91 mark, and persistent outflows from foreign investors. Ongoing global uncertainties further dampened sentiment, keeping market participants cautious. At the close, the Sensex declined by 533.50 points (0.63%) to settle at 84,679.86, while the Nifty slipped 167.20 points (0.64%) to end at 25,860.10. Sectoral breadth remained weak, with selling pressure witnessed across most sectors. The major drag on the market came from Nifty Realty, Private Banks, IT, and Metals, all of which traded under notable pressure. In contrast, Nifty Media and Consumer Durables were the only sectors to trade marginally in the green, showing relative resilience amid broad-based weakness. Broader markets also remained under pressure, with Nifty Midcap 100 declining by 0.83% and Nifty Small cap 100 slipping 0.92%, reflecting broad-based selling across the mid and small-cap segments

Nifty Outlook

The index has formed a bearish candlestick pattern with a lower high and lower low highlighting selling pressure on the weekly expiry session. Nifty on Tuesday session reacted lower from the falling trendline joining last two weeks high, failure to move above the same will keep the immediate bias corrective. On the higher side immediate resistance is placed at 26,000-26,050. Only a move above the same will open further upside towards 26,200-26,300. Index has key support placed at 25,700–25,800 levels being the confluence of the 50 days EMA, last week low and key retracement of the previous up move. From short term perspective, Nifty is likely to extend its consolidation in the range of 25,700 to 26,300.

Bank Nifty Outlook

Bank Nifty has formed a bearish candlestick pattern with a lower high and a lower low signaling profit booking at higher levels near the trendline resistance joining last two weeks highs. Index on expected lines is seen consolidating and forming a base in the range of 58500-60100. We expect the index to extend the current consolidation in the coming sessions. Key short-term support is placed at 58,200-58,600 levels being the confluence of the recent low and the major breakout area. On the higher side a move above 59,500 will open further upside towards the all-time high of 60100 in the coming week.

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