Sentiment was weighed down by persistent foreign institutional investor (FII) outflows and lingering global concerns over the U.S.-India trade deal, which analysts view as a near-term drag.
Market breadth was subdued, with the advance-decline ratio favoring declines, suggesting profit-booking across the broader market. Nifty Media was a strong outperformer, while Auto and select Financial services stocks faced selling pressure.
Two stock recommendations by MarketSmith India for 16 December
Buy: eClerx Services Ltd. (current price: ₹510)
- Why it’s recommended: Strong client base across BFSI, retail, and digital sectors, consistent revenue and profit growth, healthy operating margins, robust digital and automation capabilities, low debt and strong cash position, stable long-term contracts with global clients, and improving offshore delivery efficiency
- Key metrics: P/E: 37.51, 52-week high: ₹4,959.00, volume: ₹29.22 crore
- Technical analysis: Reclaimed its 21-DMA
- Risk factors: High dependence on the U.S. and Europe markets, client concentration risk,
- pricing pressure in the outsourcing industry, attrition and wage inflation, currency fluctuation impact, slower growth in legacy service segments, competitive pressure from larger IT/BPM players
- Buy: ₹4,600–4,670
- Target price: ₹5,350 in two to three months
- Stop loss: ₹4,300
Buy: Indian Metals & Ferro Alloys Limited (current price: ₹1,450)
- Why it’s recommended: Integrated ferrochrome production, strong demand outlook for stainless steel
- Key metrics: P/E: 21; 52-week high: ₹1,455; volume: ₹ 666.94 crore
- Technical analysis: Horizontal trendline breakout
- Risk factors: High dependence on ferrochrome prices, geopolitical and export market risks
- Buy at: ₹1,430–1,450
- Target price: ₹1,680 in two to three months
- Stop loss: ₹ 1,330
How the Nifty 50 performed on 15 December
The Indian market ended marginally lower on December 15, 2025, with Nifty 50 slipping 19.65 points (0.075%) to close at 26,027, after oscillating between 25,905 and 26,047 through the session. Trading remained range bound as investors weighed mixed global cues and awaited further clarity on the domestic inflation trajectory.
Sectoral performance was mixed. Nifty FMCG, IT, Media, PSU Banks, and Consumer Durables provided support, while Auto, Pharma, Financials, and Healthcare saw notable profit-booking. Broader market breadth remained constructive, with the advance–decline ratio at 1667:1471, indicating mild underlying strength despite headline index softness.
Nifty 50 posted a constructive rebound, with price action showing a recovery from the lower boundary of its ascending channel, reaffirming the index’s medium-term upward structure.
The recent candle reflects renewed buying interest following a brief corrective phase, and the index has reclaimed momentum above the short-term moving averages, keeping the broader trend intact. RSI has stabilized near the mid-50 zone after a period of lower highs, suggesting that bearish momentum is losing steam.
However, the ongoing RSI divergence against recent price highs warrants monitoring for potential exhaustion. Meanwhile, the MACD histogram has narrowed, and the signal lines remain compressed, reflecting a phase of consolidation within the larger uptrend.
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 flat, slipping marginally below its 21-DMA, indicating a pause in momentum. On the upside, a decisive close above 26,300 would strengthen the technical structure and open the path for a continuation of the rally toward 26,500–26,700 in the near term. On the downside, initial support is placed at 25,700, while 25,300 remains a critical demand area for sustaining the broader uptrend and preserving overall market stability.
How did Nifty Bank perform?
Nifty Bank opened on a weaker note and stayed in negative territory for the first two hours of trade. After marking its intraday low, the index attracted buying interest at lower levels, lifting it back into the positive zone. Support emerged near the 21-DMA, from which the index rebounded firmly.
A bullish candle formation on the daily chart reflects renewed strength. During the session, the index opened at 59,053.70, registered a high of 59,533 and a low of 59,052.30, before settling at 59,461.80. The recovery indicates sustained demand at key support levels. Overall bias remains constructive unless the index slips below its short-term moving averages.
The RSI has edged higher and is now positioned at 59. On the other hand, the MACD has produced a bearish crossover but continues to hold above the zero line, indicating underlying strength despite near-term caution. According to O’Neil’s methodology of market direction, Bank Nifty remains in a Confirmed Uptrend, supporting a constructive broader outlook.
Collectively, these signals point to a favorable setup in which select banking names may be poised for potential breakouts. Nevertheless, continuous monitoring is essential to gauge follow-through strength and assess short-term stability in the days ahead.
The index ended the session on a positive note and continues to trade comfortably above all key moving averages. If the prevailing buying momentum persists, it is well-positioned to move toward 59,700–60,000 in the near term. On the downside, immediate support remains placed around 58,800–58,000.
Additionally, improving breadth across banking constituents further strengthens the constructive outlook. A sustained close above key resistance levels may attract incremental institutional interest, potentially extending the current upward trajectory.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
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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.
