Morning Action @ 7:00 AM — Thursday, December 18th 2025.

# Gift Nifty is hinting an uninspiring start — as Nifty risks slipping into a fourth straight losing session — a gloomy trade setup is likely to prevail until meaningful progress emerges on US–India trade negotiations.

# The Negative Catalyst: Wea Wall Street cues as heavy sell-off in AI stocks rattles global risk sentiment and weighs on tech-led momentum.

# That said, downside shall be well protected amidst 2-positive catalysts:

1) In yesterday’s negative session, strong institutional support was seen, with FIIs net buyers to the tune of ₹1,171.71 crore, and DIIs buying worth ₹768.94 crore, providing a solid boost to market sentiment.

2) The Indian Rupee roared back on RBI’s support (The USD/INR pair plunges to near 90.00 from its all-time high of 91.56 due to the RBI’s intervention).

# Long Story Short: Rallies are likely to face selling pressure — trade light on leveraged long positions and stay cautious.

# 7:00 AM GLOBAL UPDATE:
GIFT Nifty ????????: (-26, 25861)
Dow Futures: (+100, 47986)
Nasdaq 100 Futures (+136, 24784)

Nikkei (-587, 48920)
Hang Seng (-138, 25331)

Dow Jones (-228, 47886)
Nasdaq Composite (-418, 22693)
Bovespa (-1251, 157327).

# MARKET TRENDS:
Global cues: Negative
FII: (+1171.10 crores)
DII: (+768.90 crores)
Sentiment: Bearish
Market Breadth: Negative
Technicals: Overbought conditions
F&O: 25500 - 26500 zone.

INDIA VIX 9.84 (-2.24%)
USD/INR Futures (December) (90.51)
NIFTY PCR (30th December) 1.00
Bank Nifty PCR (30th December) 0.72

# Nifty Outlook: Caution remains the watchword as bears continue to lurk around Dalal Street.

# WHAT TECHNICALS TELLS US ON NIFTY & BANK NIFTY:

NIFTY (CMP 25819):
SUPPORT: 25693/25318
RESISTANCE: 26100/26326
RANGE: 25700-26000
BIAS: Neutral
21 DMA: 26019
50 DMA: 25804
200 DMA: 24768

SENSEX (CMP 84560)
SUPPORT: 84100/82670
RESISTANCE: 85300/86200
RANGE: 84000-85000
BIAS: Neutral
21 DMA: 85149
50 DMA: 84314
200 DMA: 81198

BANK NIFTY (CMP 58927)
SUPPORT: 58300/57157
RESISTANCE: 59551/60200
RANGE: 58300-59300
BIAS: Neutral
21 DMA: 59282
50 DMA: 58357
200 DMA: 55377

# STOCK MARKET NEWS:

# Market Recap:
Nifty extended its losing streak to a third straight session, with a gloomy trading setup where pessimism outweighed optimism.

# Our Call of the Day: Nifty risks extending its losing streak to a fourth straight session — A gloomy trading day lies ahead—pessimism is set to outweigh optimism.

# The 3-Good News:

1) In yesterday’s negative session, strong institutional support was seen, with FIIs net buyers to the tune of ₹1,171.71 crore, and DIIs buying worth ₹768.94 crore, providing a solid boost to market sentiment.

2) The Indian Rupee roared back on RBI’s support (The USD/INR pair plunges to near 90.00 from its all-time high of 91.56 due to the RBI’s intervention).

3) WTI crude oil futures ($56.15) is consolidating with negative bias, the lowest since early 2021, as persistent oversupply pressures outweighed geopolitical risks.

The world is swimming in oil, and sliding gasoline prices are offering much-needed relief on the inflation front.

# THE 3-KEY SENTIMENT DAMPENER:

1) Weak Wall Street cues. Overnight, Oracle tumbled 5% after reports that its largest data center partner, Blue Owl, refused to back the company’s plan to build a $10 billion data cente

2) AI is panning out to be a Bust. The street’s concern is that even if AI works, and even if it gets adopted very fast, it might not make profit.

3) Hiring in US rose in November, but so did unemployment.

# What Technicals Tells Us On Nifty:
Technically, Nifty’s near-term setup remains fragile as long as it hovers below the all-time high of 26,326, with sellers actively capping every bounce.

While bears continue to dictate momentum, the crucial support at 25,693 remains the line in the sand — a breakdown below this level could accelerate downside pressure.

# Long Story Short: All eyes now turn to the November US CPI data on Thursday, which will be crucial in shaping expectations around the Fed’s future rate path.

‘Caution remains the watchword, as bears are quick to pounce on any intraday strength’.

WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:

Wall Street sinks in Wednesday’s trade.

# The Negative Catalyst: Heavy sell-off in AI stocks rattles global risk sentiment and weighs on tech-led momentum.

# The trading theme at Wall Street also revolved around a rising unemployment rate which rose to 4.6% in November from 4.4% in September – its highest level in more than four years.

# Wall Street will turn its attention to the November Consumer Price Index (CPI) report to be wired on Thursday,, which is unlikely to provide a “clean” read on inflation due to the absence of October data.

# As on Wednesday’s close, the Dow Jones Industrial Average was down 0.5% at 47,886 and the S&P 500 shed 1.2% to 6,721, extending their losing streaks to four straight sessions. The tech-heavy Nasdaq Composite tumbled 1.8% at 22,693.

# Gold prices ($4335 per ounce) rose, nearing October’s record highs, as investors bet on further Fed easing and sought safe havens amid renewed geopolitical tensions. Fed Governor Waller said rates could be up to a percentage point lower, citing near-stalled job growth and a cooling labor market.

# WTI crude oil futures were n the rise to above $56 per barrel, recovering from near a 5-year low in the previous session after President Trump ordered a “total and complete” blockade of sanctioned oil tankers linked to Venezuela.

# STOCKS IN SPOTLIGHT:

1) Ahluwalia Contracts (India) inched 0.37% higher after securing an EPC civil construction order from the Bihar State Tourism Development Corporation (BSTDC) for works at Punauradham, Sitamarhi (Bihar). (sOURCE: CNBC TV18)

2) Shriram Finance jumped 2.07% to hit a record high after the company announced that its board will meet on December 19 to consider a fund-raising proposal. The options on the table include a rights issue, preferential allotment, QIP, or other permissible routes.

2) Indian Overseas Bank plunged 6.45%, after the government proposed to divest up to 3% equity in the lender through an offer for sale (OFS), triggering selling pressure in the stock.

3) RailTel Corporation of India edged 0.71% lower despite securing a ₹26.9 crore LoA for implementing advanced IT infrastructure at V.O. Chidambaranar Port.

4) Diamond Power Infrastructure gained 0.419% after receiving a ₹57.6 crore LoI from Rajesh Power for the supply of cables.

5) Lupin rose 1.12% after its Nagpur injectable facility received the US FDA’s Establishment Inspection Report (EIR) with a Voluntary Action Indicated (VAI) classification.
(Source: liveMint, Moneycontrol, business Standard)

# Now, here is the preferred trade on Nifty and Bank Nifty:

Nifty (25819): Sell between 25900-25925 zone. Stop 26411. Targets 25693/25503. Aggressive targets at 25318-25350 zone.

Bank Nifty (58927): Sell at CMP. Stop at 60501. Targets 58300/57900. Aggressive targets at 57157-57300 zone.

# Our chart of the day is bearish on BSE, HAL and MCX on any early excessive intraday strength with an interweek/Intermonth perspective.

# The 1 Stock to Buy Right Now: Buy MANAPPURAM (284): Buy at CMP. Stop at 261. Targets 297/309. Aggressive targets at 323. (Interweek Strategy). Rationale: Momentum Play. Signalling a massive breakout on the upside. Key interweek support 263. Major hurdles only at 297 mark. The sequence of higher high/low is intact on weekly and monthly time-frames. 200-DMA at 259.

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