Following a strong rebound in the Indian stock market on Friday, market expert Ankush Bajaj has identified three stocks for investors to consider on Monday, 22 December 2025. His recommendations are based on technical analysis, focusing on stocks showing promising momentum and trend strength.
Market Snapshot: A Robust Recovery
Indian equity benchmarks snapped a four-day losing streak on 19 December 2025, closing notably higher. The Sensex jumped 447.55 points, or 0.53%, to settle at 84,929.36. Similarly, the Nifty 50 climbed 150.85 points, or 0.58%, to close at 25,966.40. The buying interest was broad-based, with the BSE Midcap and Smallcap indices both rising over 1.25%.
The recovery came despite the Bank of Japan hiking interest rates, with gains led by IT and financial stocks. From a derivatives perspective, the options data suggests a bullish bias, with a Put-Call Ratio (PCR) of 1.13 indicating stronger put writing. The India VIX remained low at 6.94, pointing to a stable market environment.
Top Three Stock Recommendations for 22 December
1. Infosys Ltd: Riding Strong Bullish Momentum
Ankush Bajaj recommends a 'Buy' on Infosys, citing its powerful bullish momentum. The stock's daily chart shows a well-defined uptrend, supported by strong technical indicators.
Key technical metrics for Infosys:
- RSI (14-day): At 79, indicating strong buying strength.
- MACD (12,26): At +25, confirming a strong positive crossover.
- ADX (14): At 30, reflecting a well-established and strengthening trend.
The analyst notes that as long as the stock holds above the ₹1,625 level, the bullish structure remains intact. The recommended strategy is to buy at ₹1,638.70, with a target price of ₹1,665 and a stop loss at ₹1,625. Potential risks include overbought conditions and global IT spending trends.
2. Tata Consultancy Services (TCS): Constructive Outlook
TCS is the second pick, trading with a strong bullish bias. The indicators suggest healthy upward momentum without entering extreme overbought territory.
Key technical metrics for TCS:
- RSI (14-day): At 68, showing healthy bullish momentum.
- MACD (12,26): At +41, signaling a powerful positive crossover.
- ADX (14): At 33, confirming a strong and mature trend.
The view remains constructive as long as the price action stays above key support levels. The recommendation is to buy at ₹3,282, aiming for a target of ₹3,315. Investors should place a stop loss at ₹3,266. Factors to watch include global tech sentiment and client spending cycles.
3. Bharat Electronics Ltd (BEL): A Consolidation Play
BEL is currently in a consolidation phase, but Bajaj sees signs of a potential trend development. The stock is showing limited downside at current levels, with indicators hinting at a possible bullish turnaround.
Key technical metrics for BEL:
- RSI (14-day): At 43, indicating a neutral, base-building phase.
- MACD (12,26): At -7, negative but stabilizing.
- ADX (14): At 31, reflecting strong trend potential.
A sustained move above the stop-loss level is expected to support a recovery. The advice is to buy at current market levels, with a target price of ₹403 and a stop loss at ₹387. Risks involve delays in order inflows and broader PSU sector sentiment.
Nifty Technical Structure and Outlook
On the daily chart, the Nifty 50 is trading above its 40-day exponential moving average (DEMA) at 25,839 and other key averages, indicating improving strength. The daily RSI at 52 suggests neutral-to-positive momentum with room for further upside. The hourly chart shows stronger momentum, with the RSI at 59.
The immediate resistance for the Nifty is seen near the 26,000 zone, while 25,900–25,920 acts as a crucial support band. The overall technical structure, combined with supportive options data, indicates a mild-to-positive bullish outlook. A decisive breakout above 26,000 could open the door for further gains in the coming sessions.
Ankush Bajaj is a Sebi-registered research analyst (Registration number: INH000010441). Investments in securities are subject to market risks. Readers are advised to consult with certified experts before making any investment decisions.
