Top Stock Recommendations: Nifty Outlook for the Week Beginning December 29, 2025
According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, this week’s top stock picks include Karur Vysya Bank and Gujarat Mineral Development Corporation. As the market enters the week starting December 29, 2025, Shah provides insights into the Nifty and Bank Nifty indices, highlighting recent trends and potential movements. The Nifty index has shown a narrow trading range, while the Bank Nifty has experienced indecision, indicating a critical juncture for investors.
Nifty Index Performance
The Nifty index experienced a holiday-induced slowdown last week, trading within a narrow range of just 227 points, marking its tightest weekly band since November 2023. It peaked at 26,236 before a slight pullback, ultimately closing with a modest gain of 0.29%. The formation of a Gravestone Doji on the weekly chart suggests hesitation at higher levels, reflecting reduced market participation amid the festive season. Notably, the India VIX dropped to its lowest weekly close ever, indicating a significant reduction in volatility and a growing sense of calm among investors. Historically, such low-volatility periods have often preceded substantial market movements, making the current situation noteworthy.
While the major indices remained largely stagnant, the broader market showed resilience. The Nifty Smallcap 100 index staged a strong recovery, driven by rebounds in several previously underperforming small-cap stocks. Additionally, sectors such as Railways, CPSE, and PSE stocks saw notable gains, suggesting a shift in investor interest beyond the primary indices. Looking ahead, the 26,200 to 26,250 range is expected to act as a key resistance level for the Nifty. A sustained breakout above 26,250 could pave the way for further upward movement toward 26,500 and potentially 26,650. Conversely, the 25,900 to 25,850 zone is anticipated to provide robust support.
Bank Nifty Analysis
The Bank Nifty index also exhibited a tight trading range last week, moving within just 531 points, its narrowest weekly movement since late August 2024. The formation of a small-bodied candle on the weekly chart indicates indecision, with neither bulls nor bears taking control of the trend. The index has been consolidating for several sessions, and this prolonged sideways movement is beginning to affect the short-term trend setup. The flattening of the 20-day and 50-day exponential moving averages (EMAs) suggests a loss of momentum in the near term. Additionally, the daily Relative Strength Index (RSI) has remained in a sideways trajectory for 13 consecutive sessions, highlighting persistent trend fatigue.
Looking forward, the 58,700 to 58,600 range is expected to serve as crucial support for the Bank Nifty. On the upside, the 59,400 to 59,500 zone represents significant resistance that the index must break to regain upward momentum. A decisive move beyond either boundary of this well-defined range will be essential in determining the next significant directional trend for the index.
Stock Recommendations
Sudeep Shah recommends Karur Vysya Bank as a strong buy, noting that the stock has recently broken through a horizontal trendline resistance in the 255-258 range, supported by a significant increase in trading volume. The RSI has moved above 60, indicating a shift into a bullish momentum zone. The widening of the Directional Indicator (DI) lines on the Average Directional Index (ADX) suggests strengthening trend momentum, with buyers gaining control. The Moving Average Convergence Divergence (MACD) remains above both the signal line and the zero line, confirming positive momentum. Given these indicators, Shah advises accumulating the stock in the 264-260 range, with a stop loss at 254, targeting a potential rise to 280 in the short term.
Similarly, Gujarat Mineral Development Corporation (GMDC) has shown promising signs, breaking through a downward-sloping trendline resistance on the daily chart, accompanied by increased trading volumes. The RSI is trending upward and has surpassed the 60 mark, indicating bullish momentum. The ADX shows that buyers are gaining control, and the MACD reflects positive momentum acceleration. Shah recommends accumulating GMDC shares in the 590-584 range, with a stop loss at 560, anticipating a potential rise to 640 in the near term.
(Disclaimer: The stock market recommendations and views expressed by experts are their own and do not represent the views of Observer Voice.)
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
