Top three stock picks by Ankush Bajaj for 17 December
Buy: Titan Company Ltd
Why it’s recommended: Titan is showing signs of renewed upward momentum, backed by a stable trend structure and sectoral tailwinds in discretionary consumption. The daily RSI at 62 indicates healthy bullish strength, while the MACD at +25 reflects a strong positive crossover, supporting the recent price uptick. The ADX at 18 confirms that a trend is developing, although it is still in its early stages. The stock is trading above key short-term averages, reflecting ongoing investor confidence and accumulation.
Key metrics: RSI (14-day): 62 — healthy bullish momentum
MACD (12,26): +25 — strong positive crossover
ADX (14): 18 — trend gaining early traction
Technical view: Sustaining above ₹3913 will maintain bullish momentum, with potential upside toward ₹3965.
Risk factors: Vulnerable to discretionary demand fluctuations, festive season performance, and broader consumer sentiment.
Buy at: ₹3929
Target price: ₹3965
Stop loss: ₹3913
Buy: Mahindra & Mahindra Ltd (M&M)
Why it’s recommended: M&M is showing signs of base formation after recent consolidation. Though the indicators are currently subdued, the stock holds a positive bias due to strong fundamentals and seasonal strength in the auto sector. The RSI at 45 and MACD at –1 show a neutral tone, while the ADX at 13 suggests the trend is yet to gain traction. However, the stock’s ability to hold support levels makes it a candidate for a technical bounce.
Key metrics: RSI (14-day): 45 — neutral momentum
MACD (12,26): –1 — mild divergence
ADX (14): 13 — weak trend strength
Technical view: A hold above ₹3606 will support a bounce toward ₹3650 in the near term.
Risk factors: Sensitive to rural demand trends, tractor sales performance, and macro auto sector dynamics.
Buy at: ₹3621
Target price: ₹3650
Stop loss: ₹3606
Buy: ICICI Bank Ltd
Why it’s recommended: ICICI Bank is currently consolidating near its support zone with short-term technical indicators showing early signs of reversal. The RSI at 46 and MACD at –1 suggest neutral-to-weak momentum, but the price action remains stable, hinting at potential accumulation. ADX at 13 indicates that a trend is yet to establish. A minor push above immediate resistance could trigger fresh momentum, especially with support from the broader banking space.
Key metrics: RSI (14-day): 46 — neutral momentum zone
MACD (12,26): –1 — consolidation phase
ADX (14): 13 — lack of trend strength
Technical view: Holding above ₹1362 can lead to a move toward ₹1378; a close above ₹1370 would confirm strength.
Risk factors: Sensitive to interest rate guidance, credit growth data, and any regulatory changes in the banking space.
Buy at: ₹1366
Target price: ₹1378
Stop loss: ₹1362
Market wrap
Among sectors, Realty was the worst performer of the day, declining 1.29%, as investors booked profits after recent gains. The PSU Bank index also saw a drop of 0.89%, led by weakness in major public sector lenders. Energy and PSE indices followed closely, each ending lower by 0.88%, as sector rotation continued. On the other hand, the Media index was the only sector to close in the green, albeit with a marginal gain of 0.03%, reflecting cautious investor interest in discretionary names.
In terms of stock-specific performance, Axis Bank was the biggest drag on the index, plunging 5.07%, as traders reacted to sectoral weakness in financials. JSW Steel lost 2.89%, and HCL Technologies dropped 1.90%, adding to the selling pressure in metal and IT names. Tata Steel and UltraTech Cement were also among the laggards, falling 1.76% and 1.71%, respectively.
However, not all was negative. Some large-cap names bucked the trend and managed to post gains. Titan Company led the gainers with a rise of 1.64%, supported by sustained strength in premium consumption plays. Bharti Airtel advanced 1.56%, reflecting continued institutional interest, while Tata Consumer Products added 1.08%. Britannia, Asian Paints, and M&M also posted modest gains between 0.36% and 0.46%, indicating selective buying in defensives and autos.
Nifty Technical Outlook – 17 December
The Nifty 50 closed lower on Monday at 25,860.10, marking a decline of 167.20 points (-0.64%), as the index broke below the psychological 26,000 mark amid broad-based profit booking. The close near the intraday lows signals cautious sentiment, with the index now testing key short-term moving averages.
Daily Technical View:
On the daily chart, Nifty has slipped below its 20-day moving average (DMA) of 26,029, while still marginally holding above the 40-day exponential moving average (DEMA) at 25,834. This indicates a weakening short-term structure, though the medium-term trend has not yet broken down. The daily RSI has dipped to 47.82, reflecting a shift toward neutral momentum. Meanwhile, MACD remains positive at 37.66, but the signal line crossover suggests a ‘Sell’ bias has emerged.
Other indicators like the Commodity Channel Index (CCI) at –90.47 and Momentum (10) at –172.10 also point to short-term weakness. While the ADX at 12.46 indicates the absence of a strong trend, the overall setup hints at possible consolidation or further downside unless buying emerges near 25,800 support.
Hourly (Intraday) Technical View:
On the hourly timeframe, Nifty is now trading below both the 20-hour (25,969) and 40-hour (25,941) moving averages, showing clear intraday pressure. The RSI on the hourly chart is at 38, bordering on oversold, but not yet signaling a reversal. Hourly MACD has turned negative at –18, and the Awesome Oscillator also remains in the red at –17.10, confirming loss of momentum.
These readings suggest that unless the index manages to reclaim 26,000 quickly, we could see extended range-bound or corrective action in the short term.
Derivatives & Option Chain Analysis:
The derivatives data also points to a bearish setup. Total Call OI stands at 17.85 Cr vs Put OI at 13.74 Cr, creating a negative PE-CE differential of –4.10 Cr, highlighting a shift in bias toward the bears. The most active Call strike is 25,900, with significant additions also at this level. On the flip side, the 25850 strike holds the highest Put OI, indicating immediate support.
Importantly, Put writers were seen unwinding positions, as total PE OI dropped by 6.39 Cr, while Call OI increased by 1.56 Cr. This resulted in a net change of –7.95 Cr in favor of calls, which reinforces the short-term bearish tone in the options market.
Conclusion
The Nifty has entered a phase of near-term weakness, with momentum indicators turning neutral-to-negative and bearish sentiment reflected in the options data. Support is now seen at 25,800–25,750, while resistance is placed at 26,000–26,100. A breakdown below 25,800 could lead to deeper correction toward 25,600. On the other hand, a close above 26,000 will be needed to restore bullish momentum.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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.
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