Stock Market Weekly Forecast (1-5 December): Sensex, Nifty Next Week Eye RBI MPC, Auto Sale to Guide Sentiment

Indian equity markets are set to enter the week from December 1 to December 5, 2025, with a tone of measured optimism, supported by strong domestic macro data and favourable global cues, even as investors remain cautious ahead of the Reserve Bank of India's monetary policy decision.

Stock Market Weekly Prediction For December First Week: Broader Indices Continue to Outperform

The domestic market wrapped up the November 2025' last week on a positive note for the third straight week, backed by resilient buying interest, especially in financials. According to Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, "Indian equity markets ended the week on a positive note for the third consecutive week, even as overall trading activity stayed largely range-bound. Broader indices continued to outperform the frontline benchmarks, supported by strong buying interest in the financial space."

Both the Sensex and Nifty posted gains of about 0.6%, while the Bank Nifty surged over 1.5%, driven by heavyweights in the banking sector. Within sectors, pharma and PSU banks performed the strongest, whereas the broader PSU index lagged.

Key Triggers To Drive Market Sentiment This Week

RBI MPC Meeting December 2025

The RBI's monetary policy meeting on Friday, December 5, will be a critical driver for market direction. The central bank has previously kept the repo rate unchanged at 5.50%, maintaining caution as it evaluated inflation trends, prior rate cuts and global uncertainties.

Auto Sales Data

In addition, the release of November automobile sales data on December 1 will be closely watched. Strong sales across passenger vehicles, two-wheelers and commercial vehicles could reinforce expectations of a demand revival, while weaker volumes may raise concerns regarding margins and rural demand.

Global Setup Improves but FII Flows and Rupee Still a Risk

Global markets have been supportive, with equities rallying across major economies amid rising expectations of a potential interest rate cut by the U.S. Federal Reserve. Softer U.S. treasury yields also helped improve risk appetite.

However, the domestic backdrop is not without challenges. Pravesh Gour cautioned that persistent foreign institutional investor (FII) outflows and a weakening rupee may introduce volatility and "add pressure on import-related sectors."

Nifty Weekly Prediction From December 1 to 5

According to Bajaj Brokering Research, the Nifty remains in a consolidation zone near its all-time high. The brokerage noted, "Nifty formed a small-bodied candle with shadows in either direction, signaling consolidation amid stock-specific action near the all-time high."

The index is expected to maintain a positive bias, gradually moving towards 26,500 in the upcoming sessions. The firm highlighted that the index is trading comfortably within a two-month rising channel, indicating sustained demand at higher levels.

• Immediate support: 26,000
• Short-term support zone: 25,800-25,700
• Upside target: 26,500

"Sustaining above the short-term support zone will keep the bias positive," the brokerage added.

Sensex Weekly Prediction: Mild Upside as Domestic Cues Remain Supportive

The Sensex is likely to follow the Nifty's trajectory with a stable but upward-tilted trend. Strong domestic GDP data, improving global sentiment and sector-specific strength-especially in banks and financials-could push the benchmark index higher through the week.

However, FII selling, a weakening currency and cautious sentiment ahead of the RBI meeting may limit aggressive upside moves.

Bank Nifty Outlook: Momentum Strong; Eyes on 60,400-61,000 Zone

The Bank Nifty continues to display robust momentum after hitting a fresh all-time high of 59,897 last week. According to Bajaj Brokering Research, "Bank Nifty formed a doji candlestick pattern with a higher high and a higher low, signaling continuation of the positive momentum."

The index is expected to move towards 60,400, and a breakout above this level could open the path toward 61,000 in the coming weeks.

• Crucial support zone: 58,800-58,500
• Near-term target: 60,400
• Extended bullish target: 61,000

The brokerage also highlighted that the entire two-month rally is well-channelled, indicating consistent demand at elevated levels.

Stocks to Watch This Week: Weekly Stocks Recommendation

Two stocks recommended for the short to medium term by Asit C. Mehta Investment Intermediates Ltd are Thyrocare Technologies Limited and Sumitomo Chemical India Limited.

Thyrocare Technologies Limited (Thyrocare) has displayed an encouraging technical setup. On the weekly charts, the stock has successfully broken out of a rounding-bottom pattern and has retested the breakout level.

The daily chart shows a higher-top, higher-bottom formation, signalling sustained bullish momentum. Trendline support for the stock lies near Rs 478, and as long as it trades above this level, the ongoing positive sentiment is expected to continue. Under these conditions, the stock may attempt to test its next resistance zone in the range of Rs 518-536.

Sumitomo Chemical India Limited has also shown strong bullish cues. The low of the bullish harami candle is positioned near Rs 443, which now acts as an important support zone. If the stock continues to hold above Rs 443 on a closing basis, it may attempt to break the psychological barrier of Rs 500 and sustained trading above that level could potentially push the stock toward the Rs 540-550 zone.

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