Industrial output data, minutes of the US Federal Reserve meeting, currency movement and foreign investor activity will remain in focus this week.
On Friday, Indian equities closed in the red as investors continued to book profits in the absence of fresh triggers.
Mixed global signals and cautious sentiment also weighed on the markets. The Sensex slipped 367 points, or 0.43 per cent, to close at 85,041.45, while the Nifty declined 100 points, or 0.38 per cent, to end at 26,042.30.
Broader markets also saw pressure, with the BSE Midcap index falling 0.18 per cent and the Smallcap index dropping 0.34 per cent.
Market experts believe that the near-term outlook remains muted. According to analysts, the market is likely to stay range-bound next week as liquidity conditions remain tight and investors wait for key macroeconomic cues before taking fresh positions.
“As long as Nifty sustains above the 26,000–25,800 immediate support zone, market sentiment is expected to remain constructive with a positive bias,” experts stated.
“On the upside, immediate resistance is placed near 26,200, followed by 26,500. On the downside, support is seen at 26,000 and then 25,800; a decisive break below 25,800 could invite short-term selling pressure,” they added.
One of the major triggers for the coming week will be India’s industrial production data. Investors will closely track the Index of Industrial Production for November 2025, which is scheduled to be released on December 29.
Another important global cue will come from the United States, where the Federal Reserve is set to release the minutes of its Federal Open Market Committee meeting on December 31.
In its December policy meeting, the Fed cut interest rates by 25 basis points to 3.75 per cent, continuing its easing stance.
Investors will look for clues on the future path of interest rates and the Fed’s outlook on inflation and economic growth.
The movement of the Indian rupee will also remain on investors’ radar. On Friday, the rupee weakened by 19 paise to close at 89.90 against the US dollar.
With no major domestic policy announcements expected, market participants are likely to remain cautious, market watchers mentioned.
Experts believe that stock-specific action may continue, while broader indices could trade in a narrow range as investors assess economic data, global signals and foreign fund flows in the week ahead.
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