The domestic benchmark indices, Nifty 50 and Sensex, experienced a slight decline during the afternoon trading session on Friday, with both key indices slipping into negative territory. Investor sentiment remains hesitant as market participants closely monitor global developments and seek greater clarity on domestic factors, resulting in a range-bound trading environment.
Market Performance and Key Levels
As of 12:54 IST, the Nifty 50 dropped 0.28% to 25,222, while the Sensex decreased by 0.35% to 82,021.20. Earlier in the day, both indices opened somewhat higher, following the positive trend observed in Asian markets. This initial uptick was partly driven by easing concerns over geopolitical issues related to Greenland. However, persistent foreign selling activity and mixed corporate earnings results have maintained a cautious outlook among investors.
Technical Analysis and Market Views
Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, provided insights into the market dynamics. He noted that the Nifty 50 wavered in early trade as bulls remained uninspired despite strong global cues. The India VIX, a key volatility index, stands at 13.45, indicating a clear spike in market volatility.
From a technical perspective, the crucial near-term support for Nifty 50 is placed at its 200-day moving average around the 24,144 level. More immediately, the critical support level is at 25,100, which serves as a line in the sand. A breakdown below this level could accelerate downside pressure towards the psychological mark of 24,919. On the upside, the all-time high of 26,373.20 remains the biggest hurdle, with intraday resistance observed at the 25,513 mark.
For the Bank Nifty, the crucial and most significant support is placed at 58,100. Only a breakdown below this level could accelerate downside pressure towards the 57,157 mark.
Positive Catalysts and Bullish Momentum
Despite the afternoon dip, analysts suggest that the Nifty 50 is likely to remain in a jubilant mood, with bulls eyeing further gains. This optimism stems from easing trade-war fears after President Donald Trump walked back tariff threats following what he termed a total access deal on Greenland.
The bullish momentum for the benchmark Nifty 50 looks set to continue, supported by two significant positive catalysts:
- The Federal Reserve's preferred inflation gauge, the US Personal Consumption Expenditures index, came in line with expectations, rising 0.2% month-on-month in November, unchanged from October.
- The US economy grew at an annualized rate of 4.4% in the third quarter of 2025, marginally above the initial estimate of 4.3% and representing the strongest growth since the third quarter of 2023.
Short-Term Stock Recommendations
Prashanth Tapse recommends buying three stocks for short-term gains: Hindustan Unilever Ltd, Asian Paints Ltd, and Dr Reddy's Laboratories Ltd.
Hindustan Unilever Ltd (HUL)
With a current market price of ₹2,430, HUL is showing early signs of a short-term trend reversal. The stock has sustained above key short-term moving averages and is forming a pattern of higher highs and higher lows on the daily chart. It has taken support near a well-defined demand zone and is witnessing improved volumes on up-moves, indicating fresh buying interest.
Momentum indicators such as the Relative Strength Index are trending upwards and remain above the neutral zone, suggesting strengthening bullish momentum. Immediate support is placed around ₹2,350–2,380, followed by a stronger base near ₹2,300. On the upside, resistance is seen at ₹2,450, and a decisive breakout above this level could open room towards ₹2,500–2,520 in the short term. As long as the stock holds above the ₹2,350 support zone, the near-term outlook remains constructive.
Asian Paints Ltd
Trading at a current market price of ₹2,760, Asian Paints is exhibiting a constructive short-term setup. Prices are holding firmly above short-term moving averages and forming a higher-high, higher-low structure on the daily chart. The stock has rebounded from its recent support zone with improving volumes, indicating accumulation at lower levels.
Momentum indicators like the RSI are trending upward and remain above the neutral mark, reflecting strengthening bullish momentum. Immediate support is placed at ₹2,850–2,880, with a stronger base around ₹2,780. On the upside, resistance is seen at ₹3,000, and a sustained breakout above this level could lead to further upside towards ₹3,080–3,120 in the near term. As long as the stock trades above the ₹2,850 zone, the short-term outlook remains positive.
Dr Reddy's Laboratories Ltd
With a current market price of ₹1,238, Dr Reddy's has been trading around key pivot zones where short-term technical analysis shows a structured support base forming and potential for upside on sustained buying interest. Recent data indicates the stock is respecting immediate pivot support while attempting to stabilize above short-term moving average ranges, which is a positive sign for near-term buyers.
Holding above key support levels suggests demand at lower price points, and upticks accompanied by volume can push the price towards higher resistance levels in the next few sessions. Traders focused on short-term setups would look for price action confirmation above the first resistance to validate a bullish continuation.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.
