Key factors that will dictate stock market's direction next week
14 Dec 2025

The stock market is expected to be influenced by a number of key factors next week.

These include domestic economic indicators such as WPI inflation and trade balance data, as well as developments in the India-US trade deal.

Technical indicators suggest that Nifty needs to hold certain support levels for stability.

Foreign Institutional Investors (FIIs) continue to sell, while Domestic Institutional Investors (DIIs) are buying, providing some stability amid currency movements.

Domestic data calendar and trade deal developments
Market indicators

The upcoming week will see the release of India's Wholesale Price Index (WPI) inflation and trade balance data.

Flash estimates of HSBC Composite, Manufacturing, and Services PMI will also be closely monitored for early signs of economic momentum as we head into year-end.

Meanwhile, developments related to India-US trade discussions will continue to remain in focus.

Technical outlook and currency pressure
Market strategy

Nifty has managed to reclaim the crucial short-term moving average (20 DEMA) near the 25,950 zone. A sustained hold above this level is critical for extending recovery toward record highs.

However, failure to maintain support could lead to a retest of previous swing lows.

On the currency front, the Indian rupee remains under pressure from continued FPI outflows across bonds and equities amid rising global yields.