Among sectors, almost all the major sectoral indices witnessed intraday profit booking at higher levels, but the Reality Index lost the most, shedding 1.50 percent.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, 16 December 2025: Today, the benchmark indices corrected sharply. The Nifty ended 167 points lower, while the Sensex was down by 522 points. Among sectors, almost all the major sectoral indices witnessed intraday profit booking at higher levels, but the Reality Index lost the most, shedding 1.50 percent. Technically, after a gap-down open, the entire day saw market selling pressure at higher levels. On daily charts, it has formed a bearish candle, indicating further weakness from the current levels.
We are of the view that, although the intraday market texture is weak, a fresh selloff is possible only after the dismissal of 25,800/84300. Below this level, the market could retest the levels of 25,700–25,650/84000-83800. On the flip side, 25,920/84800 would be the immediate resistance zone for day traders. If it succeeds in trading above this level, then it could bounce back to 26,050–26,100/85200-85400.
The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.
Gaurav Garg, Research Analyst Lemonn Markets Desk, adds:
Indian equity benchmarks extended their decline on Tuesday, pressured by persistent foreign fund outflows, a record-low rupee and weak global cues. The Sensex fell 533.50 points, or 0.63%, to close at 84,679.86, while the Nifty slipped 167.20 points, or 0.64%, to 25,860.10. Market breadth remained negative, reflecting broad-based caution.
Sentiment was weighed down as the rupee touched a fresh all-time low of 90.87 against the US dollar amid continued FII selling and lack of progress on the India–US trade deal. Foreign investors sold equities worth ₹1,468 crore, extending their selling streak to the twelfth consecutive session. Weak global cues added to the pressure, with Asian markets trading lower and US futures pointing to a subdued start, while investors also stayed cautious ahead of key US jobs data and weekly derivatives expiry.
On the stock-specific front, Axis Bank, Eternal and JSW Steel were among the major laggards on the Nifty, while Nestle India and Bharti Airtel provided limited support. Overall, near-term market sentiment remains fragile, with currency movement, global macro data and FII flows likely to drive direction.
