The Indian equity markets concluded the final trading session of 2025 on a resoundingly positive note, witnessing broad-based buying. Investor sentiment was buoyed by short covering and optimism that the upcoming year would deliver stronger performance. Key factors driving this upbeat mood included expectations of robust corporate earnings growth, advancements in a potential India-US trade agreement, and the renewed interest of foreign portfolio investors in domestic stocks.
Market Performance: A Strong Finish to 2025
The benchmark S&P BSE Sensex rallied significantly, gaining 546 points, or 0.64%, to close at 85,220.60. The index was propelled upwards by heavyweight contributors such as Reliance Industries, Kotak Mahindra Bank, and Axis Bank. Mirroring this upward trajectory, the Nifty 50 index climbed 191 points, representing a 0.74% rise, to settle at 26,129.60. The bullish momentum extended to the broader market as well, with the BSE Midcap index advancing by 1% and the Smallcap index registering a more substantial gain of 1.19%.
Technical Outlook: Nifty 50 and Bank Nifty Show Bullish Breakouts
Providing a technical perspective on the market movement, Sumeet Bagadia, Executive Director at Choice Broking, analyzed the indices. He noted that the Nifty 50's close at 26,129 confirmed a strong bullish session with positive price acceptance. On the daily chart, the index formed a robust bullish candlestick, signaling a breakout from a recent consolidation phase. The trend appears to have reversed from sideways to an upward bias, with the index sustaining above key short-term moving averages. Immediate resistance is now seen in the 26,250–26,300 zone, while 26,000–26,050 acts as crucial support.
Similarly, the Bank Nifty exhibited strength, closing at 59,581 after a 410-point surge. Bagadia highlighted that the banking index also displayed a bullish breakout pattern on the daily timeframe, with momentum indicators turning positive. The index shows a clear bullish reversal structure on shorter timeframes, marked by higher highs and higher lows. For Bank Nifty, immediate resistance is placed at 59,800–59,900, with support at 59,300–59,400.
Five Breakout Stock Recommendations for Traders
Amid the prevailing market conditions, Sumeet Bagadia has identified five stocks showing breakout potential. These are shares that have moved past their established resistance levels, often indicating the possibility of a sustained price move.
1. Jindal Steel: Recommended buy at ₹1,053.80, with a target of ₹1,145 and a stop loss at ₹1,008. The stock shows a bullish reversal after breaking a falling trendline and trades above its key Exponential Moving Averages (EMAs).
2. Sapphire Foods India: Suggested entry at ₹257.06, aiming for a target of ₹280, with a stop loss at ₹245. The stock has broken out of a sideways range, with the Relative Strength Index (RSI) indicating a reversal from oversold conditions.
3. Gujarat State Petronet (GSPL): Consider buying around ₹306.25 for a target of ₹335, keeping a stop loss at ₹291. GSPL has rebounded from long-term support and broken out of consolidation, trading above several EMAs.
4. Devyani International: A buy recommendation at ₹147.95, targeting ₹160, with a stop loss at ₹142. The stock has successfully retested a breakout level with increased volume, reflecting strong buying interest.
5. Steel Authority of India (SAIL): Proposed buy level is ₹146.99, with a target of ₹158 and a stop loss at ₹140. SAIL shows strength after a decisive breakout and trades above all major EMAs, with RSI signaling strong momentum.
Disclaimer: The views and recommendations presented are those of individual analysts and are intended for educational purposes only. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
