In its latest research note, Bajaj Broking Research has identified Max Healthcare Institute Ltd and Sagility as its top stock picks for December 19, 2025. The brokerage firm also provided a detailed technical outlook on the key benchmark indices, Nifty and Bank Nifty, which are currently navigating a phase of consolidation amid global and domestic headwinds.
Nifty and Bank Nifty: A Range-Bound Consolidation
Indian equity benchmarks are trading with a corrective bias, hovering around the 25,800 mark. This cautious sentiment stems from a global risk-off tone, persistent selling by Foreign Institutional Investors (FIIs), a softer Indian rupee, and ongoing uncertainties surrounding US-India trade negotiations.
In the near term, market direction is expected to hinge on a mix of crucial factors. These include the outcome of Japan's monetary policy decisions, upcoming US economic data releases, and greater clarity on trade developments between the US and India. These elements will collectively influence global liquidity, interest rate expectations, and sector-specific investor sentiment.
Technically, the Nifty has a critical support zone at 25,700–25,800. This area coincides with the 50-day Exponential Moving Average (EMA), last week's low, and a key retracement level of the prior uptrend. Sustaining above this band is vital for maintaining the positive momentum witnessed over the last three months.
Bajaj Broking expects the Nifty to consolidate between 25,700 and 26,300. A decisive close below the 25,700 support could extend the decline towards the 100-day EMA near 25,400. On the upside, immediate resistance is at 26,000. A breakout above this level could propel the index towards its all-time high zone of 26,200-26,300 in the coming weeks.
Bank Nifty Forms a Base
The Bank Nifty is digesting its recent strong gains, having traded in a broad 1,500-point range over the past four weeks. The research note anticipates the index to extend its consolidation, forming a base in the 58,500-60,100 range.
A move above the current week's high of 59,500 could open doors for an upmove towards 60,400. The index's entire two-month rally is well-channeled, indicating sustained demand. Key support is placed at 58,300-58,600, a confluence of the 50-day EMA and a recent breakout area. Holding above this support will keep the short-term bias positive.
Stock-Specific Recommendations and Rationale
Bajaj Broking has issued specific buy recommendations for two stocks, outlining detailed investment theses and price targets.
Max Healthcare: Betting on an Expansion Cycle
The brokerage recommends buying Max Healthcare in the range of ₹1,040-₹1,060 with a 12-month target price of ₹1,218, implying a potential upside of approximately 16%.
The investment rationale is centered on the company's visible and Return on Capital Employed (ROCE)-accretive expansion cycle. Growth is driven by sustained improvements in hospital occupancy and Average Revenue Per Occupied Bed (ARPOB) mix, alongside strengthening cash flows. Management's strategy focuses on brownfield expansion, disciplined asset-light growth, and leveraging operating efficiencies from new units.
The expansion pipeline includes brownfield additions, new greenfield hospitals, and asset-light facilities across major metros. The ramp-up of facilities in Dwarka, Noida, Lucknow, and Nagpur, coupled with a richer case mix boosting ARPOB and rising volumes in high-acuity specialties like oncology and transplants, underpins the momentum. The scaling of Max Lab provides additional capital-light growth. Applying a 28x EV/EBITDA multiple to projected FY28 earnings yields the target price.
Sagility: Technical Breakout Opportunity
For Sagility, Bajaj Broking suggests a buy in the range of ₹49.50-₹51.50 with a shorter-term (3-month) target of ₹56 and a stop loss at ₹47. This represents a potential return of about 11%.
The recommendation is primarily based on technical analysis. The stock is in a sustained uptrend, trading above its key moving averages and forming a pattern of higher highs and higher lows on long-term charts. It is currently breaking above its last three weeks' highs, offering a fresh entry opportunity.
The research note highlights that the stock took 7 weeks to retrace only 61.8% of its preceding 5-week rally (from ₹42 to ₹58). This shallow retracement signals a higher base formation and an overall positive structure. The target of ₹56 aligns with the 80% retracement level of the recent decline from ₹58 to ₹47.
(Disclaimer: The recommendations, opinions, and views expressed by Bajaj Broking Research are their own and do not represent the views of The Times of India. Investors are advised to consult certified experts before making any investment decisions.)
