Indian Stock Market Next Week (Dec 15-19): Sensex, Nifty May Stay Volatile; WPI Inflation, FII, Rupee in Focus

Indian equity markets head into the week of December 15-19, 2025, after a volatile yet resilient performance in the previous week. Benchmark indices such as the Sensex and Nifty are hovering near record highs, but their near-term direction is likely to be influenced by broader global cues.

Stock Market Prediction This Week From December 15 to 19, 2025; Sensex, Nifty Weekly Outlook

The Indian stock market enters the December 15-19 week with a cautiously optimistic undertone. While technical structures remain supportive for Nifty, Bank Nifty, and Sensex, macro triggers such as WPI inflation, rupee movement and FII flows will play a decisive role.

Key Triggers To Drive Market Sentiment This Week

WPI Inflation in Focus

One of the most important domestic triggers for the coming week will be the release of Wholesale Price Index (WPI) inflation data for November 2025. The Ministry of Commerce and Industry is scheduled to announce the data on December 15. In October, WPI inflation eased sharply to -1.21%, largely driven by falling prices of food items such as pulses and vegetables, along with declines in fuel and manufactured goods prices.

India-US Trade Deal Developments

Another key factor influencing market sentiment is the ongoing dialogue between India and the United States on trade. The two sides concluded talks by exchanging views on key trade matters, including ongoing negotiations aimed at finalising a mutually beneficial bilateral trade agreement.

While no immediate breakthrough was announced, continued engagement has been seen as a positive signal for medium-term trade relations. However, lingering uncertainty around timelines and outcomes continues to weigh on currency and equity sentiment.

Rupee Outlook Weighs on Sentiment

The Indian rupee remains under pressure and continues to be a key overhang for the markets. The currency weakened by 17 paise on Friday to close at a record low of 90.49 against the US dollar. Persistent uncertainty surrounding the India-US trade agreement, coupled with sustained foreign investor outflows, has added pressure on the rupee.

Forex market participants pointed out that strong dollar demand from importers, driven by a sharp rise in global precious metal prices, has further strained the currency. A weak rupee could have mixed implications-supportive for export-oriented stocks but negative for companies with high import dependence and for overall foreign investor sentiment.

FII Selling Remains a Structural Concern

Foreign portfolio investor activity continues to be a major drag on Indian equities. FPIs have been persistent sellers throughout 2025 and are on track to record the second-highest number of net selling days in the past two decades.

So far this year, foreign institutional investors have been net sellers on 141 out of 234 trading sessions. This figure is likely to surpass the 146 sell days recorded in 2022 and is second only to 2008, when net selling peaked at 154 days during the global financial crisis. Despite this, domestic institutional buying has helped cushion the impact, keeping benchmark indices near record levels.

Sensex Weekly Prediction

Insights from In The Money by Zerodha suggest that the Sensex formed a long lower wick, indicating strong buying interest at lower levels. A clear bullish bias is expected to emerge only if the Sensex moves above 85,700, followed by a breakout above the all-time high near 86,150, which will act as a major resistance zone. On the downside, the outlook turns bearish below 84,500, with 84,150 being a crucial support level to watch.

Nifty Prediction for Next Week (15 to 19 December, 2025)

According to Choice Broking, the Nifty index witnessed notable volatility last week. The index touched a high of 26,178 before profit booking led to three consecutive sessions of decline, dragging it down to a low of 25,693. However, the last two sessions saw a steady recovery from lower levels, with Nifty closing at 26,046.95, reflecting renewed buying interest near key support zones.

"The index continues to trade above key moving averages-the 20-day, 50-day, and 200-day EMAs-reinforcing the broader bullish undertone," Choice Broking noted. As long as Nifty sustains above these levels, the market sentiment is expected to remain constructive and upward-biased.

On the upside, immediate resistance is seen at 26,200, followed by 26,400 and 26,500. On the downside, support lies at 25,900 and 25,800, with a break below 25,700 likely to invite further selling pressure. Given the current structure, analysts recommend a buy-on-dips strategy, while maintaining strict stop-losses due to elevated volatility.

Bank Nifty Outlook For Next Week

Bank Nifty also displayed volatility but ended the week on a strong note. The index recorded a high of 59,713 before profit booking dragged it down to a low of 58,799. Toward the end of the week, it staged a sharp recovery and closed at 59,389.95, indicating strength near crucial support levels.

Choice Broking highlighted that "if selling pressure re-emerges and the index decisively breaks below 58,800, it may trigger a deeper correction toward 58,700-58,600." On the upside, immediate resistance is placed at 59,500, followed by 59,850 and 60,000.

The weekly RSI stands at 58.21 and is trending higher, signaling strengthening momentum and continued bullish undertones. The index remains comfortably above its 20-day, 50-day, and 200-day EMAs, reinforcing a structurally positive setup. A convincing close above 59,500 would likely open the door for further upside, while failure to sustain above this level could lead to short-term consolidation.

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