Markets End Week On A Strong Note, IIP Data, Rupee Trend & Global Signals To Guide Sensex & Nifty Next Week

Mumbai: Indian equity markets ended Friday’s session on a positive note, breaking a four-day losing streak. Both benchmark indices gained on the back of a stable rupee, positive global cues, and a Bank of Japan policy decision that matched market expectations.

On December 19, the Sensex rose 448 points, or 0.53 per cent, to close at 84,929.36. The Nifty gained 151 points, or 0.58 per cent, ending the day at 25,966.40.

Technical Levels to Watch

Market experts said that the 26,000 level remains the first major resistance for the Nifty. If the index moves higher, the next resistance levels are seen at 26,200 and 26,400.

On the downside, 25,900 and 25,800 are key support levels. A fall below 25,700 could lead to further selling pressure. Experts advised investors to follow a buy-on-dips strategy, but with strict stop-losses due to ongoing market volatility.

Midcap and Smallcap Stocks Perform Better

The broader market performed better than the main indices. The BSE Midcap index rose 1.26 per cent, while the Smallcap index gained 1.25 per cent, showing improved investor interest beyond large-cap stocks.

IIP Data in Focus Next Week

Looking ahead, investors will closely watch India’s Index of Industrial Production (IIP) data for November 2025, scheduled to be released on December 29. This data will give important clues about the strength of industrial activity in the country and could influence market sentiment.

Policy Reforms and Global Developments

Policy and trade-related news will also remain important. During the recent winter session of Parliament, the government introduced major reforms to support economic growth amid global trade challenges.

These include allowing private sector participation in nuclear energy, permitting 100 per cent foreign ownership in insurance, and proposing a single securities market code. Such steps are aimed at improving the investment climate.

Rupee Movement to Play a Key Role

Finally, the movement of the Indian rupee will be closely tracked, as it has a direct impact on foreign investor flows and overall market direction in the coming week.