As Indian equity markets closed a cautious trading session on Tuesday, December 31, 2025, research platform MarketSmith India identified two specific stocks for investor consideration. The benchmark indices remained subdued, with the Nifty 50 ending virtually flat at 25,938.85, down a marginal 0.01%. The Sensex also slipped 20 points to settle at 84,675.08.
MarketSmith's Two Stock Recommendations
The advisory, based on William J. O'Neil's CAN SLIM methodology, highlighted a buy call on FSN E-Commerce Ventures Ltd, the parent company of Nykaa, and financial services player Choice International Ltd.
FSN E-Commerce Ventures Ltd (Nykaa)
MarketSmith recommends buying FSN E-Commerce Ventures at its current price of around ₹264. The firm cites the company's strong brand recall in the beauty and personal care segment, its asset-light omnichannel model, and its growing share in online beauty retail as key strengths. The recommendation also points to expanding private labels, improving margins, profitability, cash flows, and long-term consumption growth trends.
Key metrics for Nykaa include a P/E of 12.67 and a 52-week high of ₹271.78. Technically, the stock has reclaimed its 50-day moving average (50-DMA) on above-average volume. The suggested buy range is ₹262–268, with a target price of ₹298 over two to three months and a stop loss at ₹248.
The firm also outlined several risk factors, including intense competition from large e-commerce players, valuation sensitivity, dependence on discretionary spending, and potential margin pressure from discounts.
Choice International Ltd
The second recommendation is for Choice International Ltd, with a current price of approximately ₹832. MarketSmith highlights its diversified financial services platform, strong broking and advisory presence, improving earnings trajectory, and expanding client base. The company is seen as a beneficiary of rising financialization in India.
The stock has a P/E of 95.68 and a 52-week high of ₹845.70. Technical analysis indicates the stock is in a bullish momentum trendline. Investors are advised to buy in the range of ₹820–840, aiming for a target of ₹920 in two to three months, with a stop loss at ₹790.
Risks include the cyclical nature of capital markets, revenue sensitivity to volatility, high competition in broking, and regulatory challenges.
Market Recap: A Session of Indecision
The trading session on December 31 reflected a clear lack of conviction. The Nifty 50 moved in a narrow 100-point range throughout the day, forming its fourth consecutive bearish daily candle. Market breadth was negative, with only 17 advances against 33 declines in the Nifty 50 index.
Technically, the index briefly slipped below but defended its 50-DMA. The RSI hovered around 49, showing weakening buying strength, while the MACD witnessed a negative crossover. Despite the short-term caution, MarketSmith's overall market status remains "Confirmed Uptrend" as per O'Neil's methodology. A decisive move above 26,300 is needed for a bullish revival, while 25,700 acts as immediate support.
Nifty Bank Snaps Losing Streak
In contrast to the Nifty, the Nifty Bank index managed to end the day in positive territory, gaining 0.41% to close at 59,171.25. It snapped a four-day losing streak after finding strong support near its 50-DMA and rebounding. The index now faces resistance near its 21-DMA around 59,223.
Disclaimer: The views and recommendations are those of MarketSmith India (William O’Neil India Pvt. Ltd., SEBI Registration No.: INH000015543). Investors are advised to consult certified experts before making any investment decisions.
