Top Stock Recommendations: Nifty Outlook for the Week Beginning December 8, 2025
According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, this week’s top stock picks include AB Capital and Indus Towers. As the market approaches the week starting December 8, 2025, Shah provides insights into the performance of key indices, Nifty and Bank Nifty, highlighting their recent trends and potential future movements. The analysis indicates a cautiously optimistic outlook for investors as the indices show signs of resilience despite recent fluctuations.
Nifty Performance Overview
The Nifty index kicked off December with a surge, reaching a new all-time high during its first trading session. However, this initial enthusiasm was met with a typical pullback, a common occurrence following rapid gains. The index’s decline found support at the 20-day Exponential Moving Average (EMA), which aligns with the lower boundary of a rising channel, reinforcing this area as a significant technical support level. Following this rebound, Nifty concluded the week near the 26,200 mark, reflecting a slight decrease of 0.06%.
During this period, sectors such as Nifty Bank and Nifty IT demonstrated robust performance, contributing to the overall strength of the index and preventing deeper corrections. In contrast, the broader market, particularly the Nifty Small Cap 100 index, has struggled, remaining below its crucial 200-day EMA, which indicates a level of caution among investors. Looking ahead, the current chart setup suggests that Nifty is well-positioned for further gains, with expectations of moving towards 26,350 and potentially 26,500 in the near term. On the downside, the 25,950 to 25,900 range is anticipated to serve as a solid support zone against any short-term declines.
Bank Nifty Insights
The Bank Nifty index recently achieved a new all-time high before entering a brief corrective phase. This pullback halted near the critical 20-day EMA, underscoring the strength of the prevailing upward trend. Following a 25-basis-point rate cut by the Reserve Bank of India, the index experienced a notable rebound, further enhancing bullish sentiment. On the weekly chart, Bank Nifty formed a small-bodied candle with a prominent lower shadow, a classic indicator of buying interest at lower levels.
The daily Relative Strength Index (RSI) has remained strong, hovering near the 61 mark during the retracement and subsequently moving above its 9-day average. This behavior aligns with the RSI range-shift concept, reinforcing the bullish outlook. The current chart structure indicates that Bank Nifty is well-positioned to continue its upward trajectory. In the near term, the index is expected to challenge the 60,400 level, with 61,000 as the next potential target if the momentum persists. Conversely, the 59,200 to 59,100 area is likely to provide substantial support against immediate pullbacks.
Stock Recommendations: AB Capital
AB Capital has shown promising signs after breaking out of a downward trendline on November 25. The stock rallied to a high of 360 before experiencing a brief four-day pullback. On the last trading day, strong buying activity from lower levels resulted in a significant bullish candle on the daily chart. Currently, AB Capital trades comfortably above its 20-day EMA, indicating a healthy and sustained uptrend.
The slightly widening Directional Movement Index (DI) lines in the Average Directional Index (ADX) suggest strengthening trend momentum, while the Moving Average Convergence Divergence (MACD) remains well above the zero line, confirming positive sentiment. Given these indicators, the recommendation is to accumulate AB Capital shares within the price range of 359 to 355, with a stop-loss set at 345. The stock is expected to test the 380 level in the short term.
Stock Recommendations: Indus Towers
Indus Towers has been trading within a tight range of 395 to 413 since November 19. Despite this consolidation, the stock has consistently defended its 20-day EMA, indicating strong underlying demand. On December 5, Indus Towers decisively broke out above this range, closing with a substantial bullish candle on the daily chart. The RSI has begun to rise, now exceeding 60 on both daily and weekly charts, signaling strengthening bullish momentum.
Additionally, the MACD histogram bars are shrinking, suggesting that bearish momentum is fading and a bullish crossover may be on the horizon. With a strong breakout and improving indicators, Indus Towers appears poised for further upside. Investors are advised to accumulate shares in the range of 416 to 410, with a stop-loss at 397. The stock is projected to test the 445 level in the near term.
(Disclaimer: The recommendations and views on the stock market, other asset classes, or personal finance management tips provided by experts are their own and do not represent the views of Observer Voice.)
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