The Indian stock market has displayed remarkable resilience, closing the week ended January 2 with robust gains. The benchmark Nifty 50 index scaled a fresh all-time high of 26,340, registering a weekly gain of 1.10%. This marks the index's second consecutive week of advances, underscoring the underlying strength of the domestic market.
Market Resilience Amidst Global Headwinds
Despite facing a challenging mix of global and domestic obstacles throughout 2025, Indian equities managed to deliver steady returns. The market navigated issues such as US tariffs, a weakening rupee, subdued corporate earnings, elevated valuations, and substantial foreign institutional investor (FII) outflows. Net FII selling exceeded ₹1.44 lakh crore for the year.
However, consistent buying from domestic institutional investors and retail participants effectively counterbalanced the foreign outflow. This support was pivotal in driving the indices higher, with the Sensex gaining 9% and the Nifty 50 rising over 10% for the year. "This marked the tenth consecutive year of positive returns for Indian equities," noted Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers.
Patel added that while volatility was high for much of the period, a sharp rebound in the final quarter helped indices recover from consolidation and revisit higher levels.
Technical Outlook and Key Levels for Nifty
From a technical standpoint, the Nifty opened the previous truncated week with a gap-up but faced resistance above the 26,300 zone. This led to a gap fill and a mild correction. Patel highlighted that the 25,950–25,850 region served as a crucial gap-based support. The downside risk was contained as long as the index held above 25,700 on a closing basis.
The index respected this support band, staged a strong rebound, and has now achieved a decisive breakout above 26,200. "This price action confirms a bullish cup and handle formation, carrying a pattern projection of roughly 400 points and indicating potential upside towards the 26,500–26,600 zone, provided current levels are maintained," Patel explained.
For the near term, 26,100 is identified as a key support level. A close below this would weaken the bullish structure. Patel advises a selective, stock-specific approach within quality broader market names until a clear follow-through above resistance zones emerges.
Expert Stock Recommendations for the Short Term
Jigar S. Patel of Anand Rathi recommends buying the following three stocks for a holding period of one to two weeks, based on their technical setups.
Varun Beverages (VBL)
The stock has witnessed a decisive trendline and triangle breakout, signaling a resumption of its primary uptrend. Momentum indicators are supportive, with the RSI breaking out and hovering near 55, and the MACD showing a bullish crossover. The stock closing above its quarterly VWAP further validates the strength.
- Previous Close: ₹493.80
- Buying Range: ₹495 to ₹485
- Target Price: ₹550
- Stop Loss: ₹460 (daily closing basis)
Havells India
Havells has shown a strong improvement in its technical structure, marked by clear breakouts in both its RSI range and price trendline. The MACD confirms a bullish crossover, and the stock trades above its 10- and 20-day DEMAs as well as the monthly VWAP, indicating institutional interest.
- Previous Close: ₹1,439.90
- Buying Range: ₹1,445 to ₹1,430
- Target Price: ₹1,560
- Stop Loss: ₹1,365 (daily closing basis)
Indian Renewable Energy Development Agency (IREDA)
IREDA is displaying encouraging signs after forming a double bottom pattern, suggesting a potential trend reversal. Bullish divergence, a close above the 10-day DEMA, and breakouts in RSI and MACD reinforce the positive bias. The price closing above the previous swing high improves the upside probability.
- Previous Close: ₹146.64
- Buying Range: ₹147 to ₹143
- Target Price: ₹162
- Stop Loss: ₹136 (daily closing basis)
Disclaimer: The views and recommendations above are those of the individual analyst and not of Mint. They are intended for educational purposes only. Investors are strongly advised to consult certified experts before making any investment decisions, as market conditions are dynamic and individual circumstances vary.
