According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, the top stock picks for this week feature Karur Vysya Bank and Gujarat Mineral Development Corporation. As the market approaches the week starting December 29, 2025, Shah offers insights into the Nifty and Bank Nifty indices, drawing attention to recent trends and anticipated movements.
Nifty Index Performance
Last week, the Nifty index experienced a holiday-induced slowdown, trading within a narrow range of just 227 points, the tightest weekly band since November 2023. It peaked at 26,236 before a slight pullback, ultimately closing with a modest gain of 0.29%. The formation of a Gravestone Doji on the weekly chart indicates hesitation at higher levels, reflecting reduced market participation due to the festive season. Notably, the India VIX closed at its lowest weekly level ever, indicating a significant reduction in volatility and a growing sense of calm among investors. Historically, such low-volatility phases have often preceded substantial market movements, making the current situation noteworthy.
While major indices stagnated, the broader market demonstrated resilience. The Nifty Smallcap 100 index staged a strong recovery, driven by rebounds in several previously underperforming small-cap stocks. Additionally, sectors like Railways, CPSE, and PSE stocks registered notable gains, suggesting a shift in investor interest beyond the primary indices. For the upcoming week, the 26,200 to 26,250 range is anticipated to act as a key resistance level for the Nifty. A sustained breakout above 26,250 could create opportunities for upward movement towards 26,500 and potentially 26,650. Conversely, the 25,900 to 25,850 zone is expected to provide robust support.
Bank Nifty Analysis
The Bank Nifty index also displayed a tight trading range last week, moving within just 531 points—the narrowest weekly movement since late August 2024. A small-bodied candle formation on the weekly chart reflects indecision, with neither bulls nor bears asserting control. The index has been consolidating for several sessions, and this prolonged sideways movement is beginning to impact the short-term trend setup. The flattening of the 20-day and 50-day exponential moving averages (EMAs) suggests a loss of momentum in the near term. Additionally, the daily Relative Strength Index (RSI) has remained in a sideways trajectory for 13 consecutive sessions, highlighting persistent trend fatigue.
Looking forward, the 58,700 to 58,600 range is expected to serve as crucial support for the Bank Nifty. On the upside, the zone between 59,400 and 59,500 represents significant resistance that must be breached for the index to regain upward momentum. A decisive move beyond either boundary of this well-defined range will be essential in determining the next major directional trend for the index.
Stock Recommendations
Sudeep Shah endorses Karur Vysya Bank as a strong buy, emphasizing that the stock has recently broken through a horizontal trendline resistance in the 255-258 range, supported by a notable increase in trading volume. The RSI has moved above 60, indicating a shift into a bullish momentum zone. The widening of the Directional Indicator (DI) lines on the Average Directional Index (ADX) suggests strengthening trend momentum, with buyers gaining control. The Moving Average Convergence Divergence (MACD) remains above both the signal line and the zero line, reaffirming positive momentum. Shah advises accumulating the stock in the 264-260 range, with a stop loss at 254, targeting a potential rise to 280 in the short term.
Similarly, Gujarat Mineral Development Corporation (GMDC) has displayed promising signs, having broken above a downward-sloping trendline resistance on the daily chart, accompanied by increased trading volumes. The RSI trend is upward and has surpassed the 60 mark, indicating bullish momentum. The ADX shows that buyers are gaining control, and the MACD reflects positive momentum acceleration. Shah recommends accumulating GMDC shares in the 590-584 range, with a stop loss at 560, anticipating a potential rise to 640 in the near term.
Disclaimer: Digihunt is not a financial advisor and this is not investment advice.