Nifty and Bank Nifty on 20 December: The Indian stock market continued its bearish trend on Friday, 20 December, with both major indices closing in the red. The Nifty 50 ended 1.52% lower, down by 365 points, closing at 23,587, while the Bank Nifty fell 1.77%, tracking widespread selling across sectors, with banking and automobile sectors leading the decline.
The market remained under pressure due to concerns surrounding the US Fed’s 25 basis point rate cut, coupled with its indication of only two potential rate cuts in 2025. Persistent selling by foreign institutional investors (FIIs) and elevated stock valuations further fueled the decline. The Nifty registered a significant weekly loss of 1,180 points, translating to a 5% drop, signalling substantial bearish momentum.
The top losers on the Nifty were Tech Mahindra (-3.90%), Trent (-3.67%), IndusInd Bank (-3.62%), M&M (-3.60%), and Axis Bank (-3.34%). The top gainer was Dr Reddy’s (+1.36%), while Nestle India and ICICI Bank remained flat.
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Market outlook
The Nifty closed below the 200-DMA at 23,587, moving closer to the key support range of 23,470–23,300, which previously marked the origin of a pullback. This level suggests a potential pause in the ongoing sell-off.
As the monthly expiry approaches, options data reveals maximum open interest (OI) at 23,500 PE on the downside, suggesting 23,500 as a key support, while 24,000 CE indicates strong resistance on the upside.
Three stocks to buy recommended by research analyst Ankush Bajaj:
Zensar Technologies Ltd: Buy at ₹765; Target ₹810-825; Stop loss ₹742.
The stock is in a bullish zone and has taken strong support around the ₹745 level on the hourly chart. Based on the bullish IT theme, initiating longs here seems favourable.
Dr Reddy’s Laboratories Ltd: Buy at ₹1,345; Target ₹1,375-1,405; Stop loss ₹1,318.
The stock has formed a solid base at current levels and is showing relative strength compared to the recent sell-off. A 50-70 point upward move is expected, making it a good buy opportunity.
Coromandel International Ltd: Buy at ₹1,834; Target ₹1,885-1,915; Stop loss ₹1,790.
The stock has remained intact during the recent sell-off, with increasing volumes and a strong base at current levels. A significant rally is anticipated in the coming days.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
