The rally was primarily catalyzed by cooler-than-expected US core inflation (2.6%), which revived hopes for Federal Reserve rate easing in 2026, and a significant rebound in the Rupee to 89.27 after hitting recent record lows.
Realty (+1.67%), Pharma, and Auto led the gains, while IT stocks tracked a tech-led recovery on Wall Street. Notable stock performances included Shriram Finance and ITI, the latter surging 10% on land monetization news.
Two stock recommendations for today by MarketSmith India
Buy: Reliance Industries Ltd (current price: ₹1,565)
- Why it’s recommended: Rapid growth in Reliance Retail and Jio Platforms, and strategic investments in renewable energy and new materials
- Key metrics: P/E: 22.23, 52-week high: ₹1,690, volume: ₹2,183.35 crore
- Technical analysis: Trendline breakout
- Risk factors: Earnings sensitivity to refining and petrochemical margins, high capital expenditure intensity
- Buy: ₹1,555–1,570
- Target price: ₹1,720 in two to three months
- Stop loss: ₹1,500
Buy: Piramal Finance Ltd (current price: ₹1,601)
- Why it’s recommended: Focused retail lending strategy, with expansion in housing finance, growing presence in affordable and mid-income housing finance, And sensitivity to interest rate cycles
- Key metrics: P/E: N/A; 52-week high: ₹1,784; volume: ₹ 59.42 crore
- Technical analysis: Tight range breakout
- Risk factors: Asset quality risks,
- Buy at: ₹1,590–1,610
- Target price: ₹1,850 in two to three months
- Stop loss: ₹1,480
How the Nifty 50 performed on Friday
Indian equities ended on a firm note on Friday, with Nifty 50 closing at 25,966.40, supported by broad-based buying and resilience across key sectors.
The index traded steadily through the session, holding above 25,900, indicating strong near-term support, while immediate resistance remains near 26,050–26,100.
Market breadth was notably robust, with 2,185 stocks advancing, 939 declining, and 91 unchanged, reflecting healthy risk appetite in the broader market.
Nifty Auto, Healthcare, FMCG, oil and gas, and Financials led the gain, with Nifty Auto gaining more than 1% and Nifty MidSmall Healthcare surging more than 1.3%. Pharma, Realty, and Private Banks also contributed to the positive bias.
Stable global cues and steady crude prices supported sentiment, while expectations of policy continuity and a benign domestic macro backdrop further anchored buying interest.
Overall, the session’s strong advance-decline ratio and sector-wide participation suggest sustained bullish momentum, though analysts continue to watch global central bank commentary and foreign flows for near-term direction.
Nifty 50 extended its upward bias, with price action showing a constructive attempt to stabilize after several sessions of muted movement. The index continues to oscillate within a broad rising channel, and today’s candle reflects renewed buying interest near the lower boundary of this structure.
Notably, the index continues to hover between its 21- and 50-DMA, reinforcing the current phase of short-term consolidation within the broader uptrend. Price is also testing a short-term descending trendline, and the improved intraday momentum suggests a potential effort to challenge this trendline in the coming sessions.
On the momentum side, the RSI turned slightly higher after a series of lower-highs, indicating early signs of easing momentum compression, although it remains below its indicator trendline. The MACD continues to linger near the zero line, with the histogram showing a mild tapering of negative momentum, hinting at a possible shift toward neutrality.
According to O’Neil’s methodology of market direction, the market status has shifted to a “Confirmed Uptrend” as it decisively surpassed its previous rally high of 25,670 to register a new 52-week.
The index ended the session on a positive note but was unable to cross and sustain above its 21-DMA, indicating lingering resistance at that level. On the upside, a decisive close above 26,300 would materially strengthen the technical structure and set the stage for a continuation of the rally toward 26,500–26,700 in the near term. On the downside, 25,700 remains the initial support, while the 25,300 zone acts as a critical demand area for sustaining the broader uptrend and maintaining overall market stability.
How did Nifty Bank perform?
Nifty Bank mirrored the broader market’s recovery on Friday (December 19, 2025), closing at 59,069.20, a gain of 156.35 points (+0.27%). The index demonstrated resilience by rebounding from an intra-day low of 58,897.50, eventually settling near the upper end of its daily range.
Performance across the banking sector was notably bifurcated, with PSU Banks emerging as the primary drivers of growth. Bank of Baroda (+1.09%) and PNB (+0.79%) led the gain, supported by a constructive outlook on asset quality.
Among private heavyweights, Federal Bank (+0.98%), IndusInd Bank (+0.74%), and HDFC Bank (+0.56%) provided necessary ballast, helping the index stay in positive territory. Conversely, the rally was capped by profit-booking in Canara Bank (-0.91%), AU Bank (-0.27%), and Kotak Mahindra Bank (-0.23%).
The index’s price structure continues to display a moderate uptrend, with recent candles showing buyers attempting to defend the rising trendline that has guided the index through the broader rally since October.
Although the index has pulled back from its recent swing highs, the latest session’s recovery candle indicates renewed participation near the trendline, suggesting the prevailing bullish structure remains intact despite short-term fatigue.
The RSI slipped from its earlier elevated zone, and now trends in the mid-50s range, reflecting a loss of upside acceleration while keeping the broader momentum profile stable. Meanwhile, the MACD has transitioned into a mild bearish crossover, with the histogram printing shallow negative bars, signaling a deceleration of bullish momentum rather than a complete reversal.
The index continued to consolidate around its 21- and 50-day moving averages, reflecting a phase of short-term digestion following the recent run-up. While intermittent profit-booking may persist, any pullback toward the 50-DMA near 58,500 is likely to draw renewed buying interest, given the consistent accumulation observed in leading banking names.
A swift rebound and a close above the 21-DMA would be an encouraging signal, helping to reassert bullish momentum and reinforce the broader positive trend. Meanwhile, 58,500-58,000 remains a structurally important demand zone, supported by sustained investor appetite across major constituents of the banking index.
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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.
