The Indian equity benchmarks concluded the previous session on a subdued note, snapping a three-day winning streak. The Nifty 50 index closed marginally lower by 0.13% at 26,142.10 on Wednesday, December 24, as markets lacked fresh domestic catalysts and reacted to mixed global signals.
As the year-end holiday season sets in, trading volumes have thinned, and market breadth has weakened. Investors are also adopting a cautious stance ahead of the third-quarter earnings season, which will kick off with IT giants HCL Tech and TCS announcing their results on January 12.
Market Outlook and Key Levels to Watch
According to Ajit Mishra, Senior Vice President of Research at Religare Broking, the market requires a decisive push from the banking sector for fresh momentum. He emphasised that a clear breakout above the 59,500 level in the Bank Nifty could be the fuel for the next upward leg in the market.
Until that happens, Mishra advises a stock-specific trading approach. "Focus on sectors showing consistent outperformance, such as private banks, metals and auto, and adhere to disciplined risk management in the low-volume environment," he said. He maintains a positive bias and recommends a buy-on-dips strategy as long as the Nifty sustains its prevailing uptrend.
Expert's Top Stock Recommendations for 1-2 Weeks
Mishra has identified three stocks with favourable technical setups for potential gains over the next one to two weeks. Here are his detailed picks:
HCL Technologies | Last Traded Price: ₹1,674.70 | Target: ₹1,780 | Stop Loss: ₹1,620
Mishra noted a broader improvement in the IT sector, with HCL Tech aligning well with this trend. The stock has shown resilience by holding above its 20-day Exponential Moving Average (EMA) after a corrective phase. It has also formed a fresh pivot resembling a flag pattern, suggesting a continuation of the uptrend. "Considering the supportive sectoral backdrop and positive chart structure, traders may consider long positions," he advised.
Britannia Industries | Last Traded Price: ₹6,030 | Target: ₹6,470 | Stop Loss: ₹5,830
Within the mixed-trending FMCG space, Britannia has been a relative outperformer, trending higher over the past nine months. The stock broke out of a cup and handle pattern, underwent a mild retracement, and has now formed a fresh base, indicating healthy consolidation. A recent range breakout and a fresh bullish crossover on the weekly RSI signal a revival in positive momentum, according to Mishra.
Manappuram Finance | Last Traded Price: ₹315.75 | Target: ₹365 | Stop Loss: ₹295
This stock has delivered a decisive breakout from a prolonged consolidation, backed by a strong bullish candle and high volumes, confirming genuine buying interest. It trades comfortably above its key moving averages, with the rising 50-DMA acting as support and the upward-sloping 200-DMA reinforcing the broader uptrend. "As long as the price holds above the breakout zone, the stock is likely to trend higher," Mishra stated.
Final Takeaways for Traders
In summary, while the broader indices are in a consolidation phase amid year-end lull, specific stocks in outperforming sectors present trading opportunities. Experts recommend focusing on robust technical setups, maintaining strict stop-losses, and managing risks carefully in the current low-volume market environment. The upcoming earnings season, beginning with IT majors, is expected to provide the next major directional trigger for the markets.
