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The Indian stock market has made a strong comeback after four days of decline. Amid the rise in Sensex-Nifty, investor confidence seems to be slowly returning. Now in the coming weeks, IIP data, movement of rupee and global signals will decide the direction of the market.
New Delhi. The Indian stock market ended the week with a strong gain on Friday and showed strength after four consecutive trading days of decline. Investor confidence returned due to stability in the rupee, positive signals from foreign markets and the decision of the Central Bank of Japan. As a result, all-round buying was seen in the market and major indices closed at higher levels. This indicated that investors’ confidence was slowly building back up.
Strong rise in Sensex-Nifty
On December 19, the last trading day of last week, BSE Sensex closed at 84,929.36 with a gain of 448 points. Whereas NSE Nifty rose by 151 points to reach the level of 25,966.40. Buying in banking, auto and selected IT stocks played an important role in the market rise. The impact of the positive trend in foreign markets was clearly visible on the domestic market as well.
Midcap and smallcap performed better
More enthusiasm was seen in midcap and smallcap stocks as compared to big stocks. The BSE Midcap index closed with a gain of 1.26 percent, while the Smallcap index registered a gain of 1.25 percent. This indicates that the risk appetite of investors is increasing and the market scope is gradually expanding.
Will keep an eye on technical levels
According to market experts, if the rise in Nifty continues further then the level of 26,000 will be the immediate resistance. Above this, the levels of 26,200 and 26,400 are considered important. In case of a decline, strong support can be found at 25,900 and 25,800. If Nifty slips below 25,700 then pressure in the market may increase. Experts are currently advising buying on dips, but are insisting on keeping a strict stop loss.
Focus on IIP data and rupee
In the coming week, investors will keep an eye on the Industrial Production Index or IIP data. The IIP data for November 2025 will be released on December 29, which will give an idea of the health of industries and factories. Apart from this, the reforms announced in the winter session of Parliament – such as 100 percent FDI in the insurance sector and private participation in the nuclear sector – can support the investment climate. Besides, fluctuations in rupee will also play an important role in deciding the direction of the market.
