New Delhi, Dec. 27 (IANS) – With liquidity staying subdued and key macro data still pending, analysts expect Indian markets to trade mostly within a narrow band in the short term as investors consolidate positions ahead of the New Year.
This week’s mood was shaped by a mix of domestic economic figures and global signals. India wrapped up a comprehensive free‑trade agreement with New Zealand, boosting its Indo‑Pacific ties and export diversification plan. On the home front, growth in the eight core infrastructure sectors fell sharply to 1.8 percent in November, indicating a slowdown in industrial momentum.
Ajit Mishra, SVP of Research at Religare Broking, said FIIs were net sellers the entire week, undoing the small inflows seen last week. He added that steady currency moves, record‑high bullion prices, and lighter trading during the holiday period all contributed to a mixed session.
The following week will see the calendar turn to 2026, and traders anticipate increased volatility due to the December futures and options expiry.
Market watchers will keep a close eye on a number of domestic releases, including November’s industrial production data, the latest government budget figures, external debt statistics, and the final HSBC Manufacturing PMI reading.
On the global stage, investors will monitor U.S. macro signals, particularly the FOMC minutes and updates on the Federal Reserve’s balance‑sheet policy. Those developments could sway near‑term expectations for growth, liquidity, and risk appetite.
A note from Bajaj Broking highlighted that the Nifty finished the week forming a bearish candlestick pattern—lower highs and lower lows—hinting at profit taking after the recent rally. The index is expected to stay within a consolidation range of roughly 25,700 to 26,300 in the coming week. A clear breakout or breakdown will set the next direction. If the index pushes past 26,300, it could open the door to moves toward the 26,500 level in the following weeks.
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