The Nifty 50 outlook remains strong as the Indian stock market showcased a strong performance last week, with the Nifty 50 index crossing the critical resistance level of 24,500. The benchmark index ended the week at 24,677.80, registering a 2.3% gain week-on-week. Meanwhile, the S&P BSE Sensex closed at 81,709.12. Banking stocks, represented by the Bank Nifty index, outperformed with a 2.8% rise, ending the week at 53,509.50.
Among sectoral performers, the realty sector led the pack, supported by IT and metal stocks, while FMCG and utilities lagged. Broader markets also saw gains, with mid-cap indices outperforming the benchmarks. Analysts expect the Nifty to target the 24,857-24,882 range in the near term, with further potential to touch 25,084. Immediate support is identified at 24,351, according to Deepak Jasani, Head of Retail Research at HDFC Securities.
Monday’s Trade Setup and Global Market Drivers
The positive momentum in the Nifty is expected to persist, with analysts identifying critical levels for traders. The Bank Nifty must decisively breach the 53,900 resistance to sustain upward momentum, while a downside breach of 53,200 could lead to further declines toward 52,800, noted M. Mehra, Technical Analyst at SAMCO Securities.
The Nifty 50 outlook will also be influenced by global market factors that will play a significant role in shaping the trading sentiment this week. Vinod Nair, Head of Research at Geojit Financial Services, highlighted the importance of upcoming U.S. payroll and CPI inflation data, which could provide insights into the Federal Reserve’s December meeting outlook. Back home, a pickup in government capital expenditure is expected to boost sectors like infrastructure, capital goods, realty, cement, and metals in the second half of FY25. Additionally, moderation in inflation due to seasonal factors and favorable agricultural output has improved prospects for the Reserve Bank of India’s February monetary policy.
Top Stock Recommendations for Monday
Analysts have identified five stocks for traders to consider this week. Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, shared their picks:
- Ajmera Realty & Infra India Ltd: Bagadia recommends buying at ₹1136.5 with a stop loss at ₹1095 and a target price of ₹1200. The stock is trading near an all-time high, supported by strong bullish momentum and robust trading volumes.
- Deepak Fertilisers & Petrochemicals Corporation Ltd: Bagadia suggests purchasing at ₹1423.85, with a stop loss at ₹1370 and a target of ₹1515. The stock’s recent upward trend indicates continued bullish sentiment.
- Bharat Dynamics Ltd: Dongre recommends buying at ₹1220, setting a stop loss at ₹1180 and a target of ₹1265. The stock’s support at ₹1180 indicates potential for further upward momentum.
- Jyoti CNC Automation Ltd: Dongre advises entering at ₹1340 with a stop loss at ₹1300 and a target price of ₹1385. The stock’s bullish reversal pattern suggests a short-term price rise.
- GAIL India Ltd: Dongre recommends buying at ₹210 with a stop loss at ₹200 and a target of ₹224. A breakout above ₹207 and rising RSI indicate increased buying momentum.
With the Nifty 50 outlook riding a wave of optimism, traders are advised to monitor these key levels and global cues for a strategic start to the week.
