According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, this week’s top stock picks include KEI Industries and JK Tyre & Industries. As the market approaches the week starting December 22, 2025, Shah provides insights into the current trends of the Nifty and Bank Nifty indices. He observes a period of indecision in the market, marked by narrow trading ranges and elevated volatility, which could indicate potential movements in the coming days.
Nifty Analysis
Last week, the Nifty index recorded its tightest trading range since early October, fluctuating within just 321 points. Despite this limited movement, volatility remained high, with the index opening significantly higher or lower each day. This trading pattern reflects a struggle between bullish and bearish sentiments, creating a cautious market environment. The Nifty ultimately settled at the 25,966 level, forming a small-bodied candle with shadows on both sides, highlighting the prevailing uncertainty among investors.
A notable technical development occurred as the Nifty rebounded from its 50-day exponential moving average (EMA), suggesting potential upward movement. This rebound has led to the formation of an Adam & Adam Double Bottom pattern on the daily chart. A breakout above the neckline resistance could trigger a substantial upward move in the index. Additionally, broader market indices, including Nifty Midcap 100 and Nifty Small Cap 100, have shown signs of recovery from recent lows, indicating renewed buying interest. The upcoming trading session on Monday is crucial, as follow-through on the upside could lead to a broader market rally.
From a technical perspective, the Nifty faces significant resistance in the 26,050 to 26,100 range. A decisive move above 26,100 could set the stage for a rally towards 26,300 and potentially 26,500. On the other hand, the zone between 25,770 to 25,700 is expected to provide strong support, coinciding with previous swing lows and the 50-day EMA.
Bank Nifty Overview
The Bank Nifty index also exhibited a narrow trading range, with an 820-point consolidation marking its tightest movement since late October. This limited range led to the formation of a Doji candle on the weekly chart, indicating indecision among market participants. The index has recently been hovering around its 20-day EMA, and this prolonged consolidation has caused the moving average to flatten, reflecting a lack of directional momentum.
Key oscillators and momentum indicators indicate a sideways bias, pointing to the absence of strong buying or selling pressure. Looking ahead, the 58,700 to 58,600 zone remains a critical support area, aligning with previous swing lows. On the upside, the range of 59,400 to 59,500 will act as an important resistance zone. A strong and sustained breakout above 59,500 could lead to significant upward movement towards 60,200 in the near term.
Stock Recommendations
Sudeep Shah recommends KEI Industries as a top stock pick for the week. The stock has recently broken out above a horizontal trendline on the daily chart, supported by notably higher trading volumes. Currently, KEI Industries is trading above its key moving averages, all trending upward. A positive development is that the daily Relative Strength Index (RSI) has crossed above 60 for the first time since mid-October, indicating strengthening momentum. Investors are advised to accumulate the stock in the range of 4,290 to 4,250, with a stop-loss set at 4,120. The stock is expected to test the 4,600 level in the short term.
Another recommendation is JK Tyre & Industries, which has broken out from a 30-day consolidation phase on the daily timeframe, backed by volumes exceeding the 50-day average. The stock is currently at a 52-week high, with all key moving averages and momentum indicators reflecting robust bullish strength. The daily RSI has moved above 60, and the MACD histogram has entered positive territory, confirming the trend’s strength. Investors are encouraged to accumulate JK Tyre in the range of 486 to 482, with a stop-loss at 469. The stock is projected to test the 520 level in the near term.
Digihunt is not a financial advisor and this is not investment advice.