The Indian stock market halted a four-session decline on Friday, December 19, closing with robust gains. The rally was fueled by a combination of a steady rupee, positive signals from global markets, and the Bank of Japan's policy decision aligning with investor expectations.
Benchmarks and Broader Markets Rally
The benchmark indices posted solid advances. The S&P BSE Sensex climbed 448 points, or 0.53%, to settle at 84,929.36. Meanwhile, the NSE Nifty 50 index rose 151 points, or 0.58%, closing at 25,966.40. The performance of mid and small-cap stocks was even more impressive, outperforming the frontline indices. The BSE Midcap index surged 1.26%, and the BSE Smallcap index jumped 1.25%.
Expert View on Market Outlook and Key Levels
Sumeet Bagadia, Executive Director at Choice Broking, noted a marked improvement in market sentiment. He pointed out that the Nifty 50 staged a strong recovery after successfully testing its 50-day Exponential Moving Average (DEMA) support, which was positioned near 25,750.
"The index is now sustaining above this crucial 50-DEMA support and concluded Friday's session around the 25,950 mark," Bagadia stated. He highlighted that the immediate resistance zone for the Nifty lies between 26,000 and 26,050. A decisive close above this band could signal stronger bullish momentum. Conversely, a break below the 25,750 support level might weaken sentiment, potentially driving the index toward the next significant support at 25,400-25,350.
Three Stock Recommendations for Monday
For investors looking at opportunities on Monday, December 22, Sumeet Bagadia has recommended three stocks:
- Asian Granito India: Buy in the range of ₹1,220-1,230. The target price is ₹1,270, with a stop loss set at ₹1,180.
- Lloyds Enterprises: Buy in the range of ₹840-845. The target price is ₹880, with a stop loss at ₹820.
- Jayaswal Neco Industries: Buy in the range of ₹1,440-1,450. The target price is ₹1,500, with a stop loss at ₹1,400.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the individual analyst and not of Mint. Investors are strongly advised to consult certified experts before making any investment decisions.
