According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, investors should keep an eye on BHEL and Ashok Leyland as top stock picks for the week starting December 15, 2025. The Nifty index has shown resilience, reaching a new all-time high, while the Bank Nifty has faced some challenges. As market dynamics evolve, Shah provides insights into the potential movements of these indices and the recommended stocks for investors.
Nifty Index Performance
The Nifty index began December on a high note, achieving a record peak of 26,325 during its first trading session. However, this initial surge was followed by a typical market correction, with the index experiencing a pullback of approximately 2.5% over eight trading sessions. This pattern aligns with a consistent trend observed since August, where declines have remained under 3.5% and typically last between five to ten sessions. The 50-day Exponential Moving Average (EMA) has emerged as a crucial support level, helping to stabilize the index and form a solid base.
Currently, the Nifty is trading above both its short-term and long-term moving averages, indicating a strengthening trend. Momentum indicators, such as the daily Relative Strength Index (RSI), have rebounded from lower levels and are now hovering around 54.48, suggesting a positive outlook. The immediate resistance zone is identified between 26,150 and 26,200, with a breakout above this level potentially leading to further gains towards 26,350 and 26,500. Conversely, the 50-day EMA range of 25,750 to 25,700 is expected to provide robust support against downward movements.
Bank Nifty Analysis
In contrast to the broader market, the Bank Nifty index has underperformed, closing at 59,390 with a weekly decline of 0.66%. The index has shown signs of indecision, reflected in the formation of small-bodied candles with long lower shadows, indicating buying interest at lower levels but a lack of strong bullish momentum. Throughout the week, the Bank Nifty hovered around the 20-day EMA, suggesting a period of consolidation rather than a clear directional trend.
Looking ahead, the 59,700 to 59,800 range is anticipated to act as a significant resistance area. A decisive move above 59,800 could pave the way for a sharp upward movement towards 60,500, and potentially even 61,000 if momentum continues to strengthen. On the downside, the immediate support zone is identified between 58,800 and 58,700, with a breakdown below this level likely to increase selling pressure.
Stock Recommendations: BHEL
BHEL has recently broken through a critical resistance level of 280, which it struggled to surpass for six consecutive sessions. This breakout, accompanied by a notable increase in trading volume, signals strong buying conviction. The stock’s performance has also seen it close above the midline of the Bollinger Bands, indicating a shift towards positive price momentum. The RSI has improved from 45 to 59, reflecting a strengthening bullish sentiment.
Given these indicators, it is recommended to accumulate BHEL shares in the price range of 285 to 282, with a stop-loss set at 275. The stock is expected to test the 305 level in the short term, supported by the fading selling pressure indicated by the MACD histogram.
Stock Recommendations: Ashok Leyland
Ashok Leyland has recently emerged from a consolidation range of 155 to 161, closing higher and indicating renewed buying strength. The stock is trading well above its key short and long-term moving averages, reinforcing a strong underlying trend. The Nifty Auto/Nifty ratio chart shows a bounce off its upward-sloping trendline, highlighting Ashok Leyland’s sectoral outperformance.
The ADX indicator is on the rise, suggesting strengthening trend momentum, while the MACD line remains above the zero line, indicating sustained positive bias. The RSI has climbed from 62 to 70, suggesting strong bullish momentum. Investors are advised to accumulate Ashok Leyland shares in the range of 164 to 162, with a stop-loss at 156. The stock is projected to test the 175 level in the near term, supported by its current momentum.
Digihunt is not a financial advisor and this is not investment advice.