Daily Morning Report – 17/12/25

NIFTY OUTLOOK: 25860.10 FII -2381.92 cr DII 1077.48 cr

As discussed yesterday, market behavior remained on the expected lines during the day, as aggravated selling pressure dragged the Nifty down to our support of 25830 (day’s low of 25834.35) after a decisive breakdown of 25977, with the day’s high at 25980.75.

Further, a bearish candle appeared on the daily chart of the Nifty, suggesting continuation of bearish sentiment. Hence, if it decisively breaks below 25810, it may slip further towards 25761–25713. If selling pressure accentuates, it may test 25663.

On the upside, 25910–25960 may act as immediate resistance for the Nifty. A breakout and sustained move above these levels may push the index towards 26007–26057.

Bank Nifty OUTLOOK:
SPOT: 59034.60 PCR: 0.74
Max CE OI at 59500 & Max PE OI at 59500

On 16th December 2025, the Bank Nifty index closed at 59034.60, down 427.20 points (-0.72%). The total movement during the session was 368.90 points, with a high of 59335.25 and a low of 58966.35.

Technical view
Important support and resistance levels for Bank Nifty are 58800 and 59650, respectively.
Intraday support and resistance are 58933 and 59136, respectively.
The Relative Strength Index (RSI) for Bank Nifty stands at 51.5. Below 30 is considered oversold, while above 70 is overbought.

Bank nifty Day SMA Analysis:

Bank nifty is trading above 5 out of 8 SMA’s (30, 50, 100, 150, 200 Day).

Bank nifty is trading below 3 out of 8 SMA’s (5, 10, 20 Day).

No Candlestick Pattern was identified in bank nifty on daily chart.

Macro:

1.Dollar index is @ 97.88

2.Vix is @ 16.48

3.Brent crude is @ 59.42

4.US 10 years bond yield is @ 4.152

Note:
U.S. payroll data was worse than expected, increasing uncertainty over the U.S. economy. While non-farm payrolls grew more than expected in November, this was accompanied by a rise in the jobless rate to a four-year high, underscoring continued weakness in the labor market.

The rise in payrolls was also much smaller compared to sharp declines seen in prior months. Other indicators also flagged cooling in the U.S. economy. PMI data for December showed lower-than-expected growth in both manufacturing and services, while delayed retail sales data for October indicated cooling growth.

Focus now shifts to U.S. CPI inflation data for November, due on Thursday. Labor growth and cooling inflation remain the Fed’s two key considerations for interest-rate decisions, with the central bank widely expected to keep rates on hold in January.

All eyes are now on the Bank of Japan. Benchmark 10-year Japanese government bond yields have hit an 18-year high this month, as the BOJ is widely expected to raise interest rates on Friday to 0.75%, a three-decade high.

Japan’s upper house passed an 18.3 trillion yen ($118 billion) extra budget, giving Prime Minister Sanae Takaichi the green light to roll out the country’s largest stimulus package since the COVID-19 pandemic, despite fiscal concerns.

As mentioned earlier, if the governor’s comments turn hawkish, global equities may see selling pressure along with a rise in bond yields. However, the governor is under pressure to avoid a hawkish stance.

As far as Indian markets are concerned, tariff-related uncertainty and a surge in AI-linked stocks globally have made markets vulnerable to short-term, flow-driven swings, even as domestic growth remains on a solid footing. Hopes of a trade deal being finalized in December are fading, and investors are turning impatient.

Conclusion:
If the BOJ governor’s comments are hawkish, global equities may witness selling pressure. However, the governor remains under pressure not to adopt a hawkish tone. The next two days will be very important for global equity markets.

Important Pivot Point Levels for Today           

Nifty

Bank Nifty