Indian equity markets displayed a phase of intense indecision last week, with benchmark indices moving within their narrowest ranges in months. According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, this consolidation could be a precursor to a decisive move. For the trading week starting December 22, 2025, Shah has identified KEI Industries and JK Tyre & Industries as his top stock picks, while providing detailed technical views on the Nifty and Bank Nifty.
Nifty Analysis: A Crucible of Indecision
The Nifty50 index witnessed a remarkably tight trading band of just 321 points in the previous week, marking its smallest weekly range since early October. Despite this compression, volatility was high, with the index opening with a gap up or gap down on every single session. Shah notes that this combination signals a clear lack of conviction, where neither bulls nor bears are committing aggressively.
The week concluded with the index at 25,966, forming a small-bodied candle. A significant technical observation was the index finding reliable support near its 50-day Exponential Moving Average (EMA) and rebounding. This action has led to the formation of an Adam & Adam Double Bottom pattern on the daily chart. A sustainable close above the neckline resistance could trigger a sharp upward move.
Shah identifies the immediate resistance zone at 26,050–26,100. A decisive breakout above 26,100 may propel the index towards 26,300 and then 26,500. On the flip side, strong support is expected in the 25,770–25,700 zone, which aligns with the prior swing low and the 50-day EMA.
Bank Nifty and Broader Market Outlook
The Bank Nifty mirrored the benchmark's indecisiveness, consolidating in an 820-point range—its tightest since late October. This resulted in a Doji candle on the weekly chart. The index has been oscillating around its flattened 20-day EMA, with momentum indicators reflecting a sideways bias.
For Bank Nifty, the 58,700–58,600 range is a crucial support. On the higher side, the 59,400–59,500 band acts as key resistance. A sustained move above 59,500 could unlock a rally towards 60,200. Meanwhile, the broader market showed signs of life. Both the Nifty Midcap 100 and Smallcap 100 indices recovered from their lows, forming candles with long lower shadows, indicating buying at dips. Monday's session will be critical to confirm if this recovery has legs.
SBI Securities' Top Stock Recommendations
KEI Industries: Shah recommends accumulating this stock. The share price has broken above a horizontal trendline on the daily chart with strong volume confirmation. It is now trading above all key rising moving averages. A positive signal is the daily Relative Strength Index (RSI) moving above 60 for the first time since mid-October. The suggested accumulation zone is ₹4,290–₹4,250 with a stop loss at ₹4,120. The short-term target is ₹4,600.
JK Tyre & Industries: This stock is another buy recommendation. It has broken out from a 30-day consolidation phase on the daily chart, supported by volumes higher than the 50-day average. Trading at a 52-week high, its technical indicators are robustly bullish. The daily RSI is above 60 and the MACD histogram has turned positive. Traders can look to accumulate in the ₹486–₹482 range with a stop loss at ₹469. The stock is expected to test ₹520 in the near term.
Disclaimer: The recommendations and views expressed are those of the individual analyst and do not represent the views of The Times of India. Investors are advised to consult certified experts before making any investment decisions.
