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Stock market recap: Indian stock market benchmarks – the Sensex and the Nifty 50 – ended in losses for the third consecutive session on Wednesday, 17 December, on persisting concerns over the rupee's weakness, foreign capital outflows and a delay in the India-US trade deal.

The Sensex closed with a loss of 120 points, or 0.14%, at 84,559.65, while the Nifty 50 ended at 25,818.55, down 42 points, or 0.16%. The fall was steeper for the mid- and small-cap segments. The BSE Midcap index ended 0.53% lower, while the Smallcap index fell 0.85%.

The across-the-board selloff dragged the overall market capitalization of BSE-listed firms to ₹466 trillion, making investors lose ₹1.6 lakh crore in a single session.

Indian equities ended lower on 17 December, with the Nifty 50 slipping 0.16% to 25,818.55, weighed by weakness across financials, FMCG, and consumer durables. The index oscillated within a narrow range of 25,770-25,929, reflecting cautious sentiment ahead of global central bank commentary and lingering geopolitical uncertainties.

Market breadth remained notably weak, as the advance-decline ratio deteriorated to 1,055 advances against 2,084 declines, signalling broad-based pressure across the broader market. On the sectoral front, IT (+0.29%), Metal (+0.25%), PSU Banks (+1.29%), and Oil and Gas (+0.23%) provided pockets of support. On the other hand, Financial Services, Auto, FMCG, and Consumer Durables dragged the benchmarks lower. Private Banks also underperformed, mirroring risk-off positioning.

Nifty continued to trade within a narrowing range, hovering between its 21- and 50-DMA, reflecting an indecisive yet controlled pullback within the broader ascending structure. Price action indicates that the index is consolidating below the upper boundary of its rising channel.

The RSI remains subdued and continues to drift lower within a falling trajectory, signalling persistent bearish momentum divergence relative to recent price swings. This suggests waning upside strength even as the index attempts to stabilize above intermediate moving averages. Meanwhile, the MACD has slipped into a negative crossover, with the histogram extending further into negative territory, reinforcing the current momentum cooling phase.

According to O'Neil’s methodology of market direction, the market status has shifted to a "Confirmed Uptrend" as it decisively surpassed its previous rally high of 25,670 to register a new 52-week.

The index, after failing to move above its 21-DMA and facing renewed selling pressure, is now trading marginally above the 50-DMA. On the downside, 25,700 serves as the initial support, while 25,300 remains a critical demand area for sustaining the broader uptrend and preserving overall market stability. Conversely, a decisive close above 26,300 would materially strengthen the technical setup and open the way for a continuation of the move toward 26,500–26,700 in the near term.

Nifty Bank ended the session on a subdued note, slipping 0.18% to 58,926.75, weighed by weakness in select large-cap private lenders despite intraday attempts to stabilize near the 58,800 support zone.

The index traded within a narrow band of 58,801–59,127, reflecting cautious sentiment ahead of key global macro cues. Market breadth was mildly positive with 8 advances and 4 declines, supported primarily by PSU Banks. State Bank of India (+1.58%), Bank of Baroda (+1.47%), Canara Bank (+2.06%), and Punjab National Bank (+1.73%) outperformed, extending their recent momentum as investors continued rotating into value-driven public-sector names.

Among private lenders, AU Bank (+1.01%) and Axis Bank (+0.52%) posted modest gains. However, heavyweights such as ICICI Bank (-0.92%), HDFC Bank (-0.92%), and IndusInd Bank (-1.13%) dragged the index, keeping overall sentiment restrained

Nifty Bank continues to exhibit a mild consolidation phase, with today’s candle reflecting indecision near the short-term trendline that has been guiding price action since late October. Despite intraday volatility, the index held above this trendline, indicating buyers are still defending the structure even as momentum cools.

RSI has slipped below its midline and is now tracking a short-term downward slope, reflecting weakening momentum and a shift toward a more neutral-to-soft sentiment in the near term. MACD also shows a bearish crossover with widening histogram bars, reinforcing signs of momentum loss after weeks of steady gains.

The index continued to fall below 59,000. However, the pullback appears orderly and remains consistent with the prevailing uptrend. While some near-term profit-booking may continue, any drift toward the 50-DMA around 58,300 is likely to attract fresh buying interest. A swift close back above the 21-DMA would help reassert bullish momentum and reaffirm the broader positive structure.

On the downside, 58,800–58,000 offers a meaningful cushion, supported by steady participation across key banking constituents. Improving sectoral breadth further strengthens the underlying tone, and a sustained move above key resistance markers could draw incremental institutional flows, potentially accelerating the index’s upward trajectory.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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