In its latest research note, Bajaj Broking Research has identified two prominent stocks as its top investment recommendations for December 26, 2025. The brokerage firm has suggested buying shares of Lloyds Metals and Energy Ltd and Kotak Mahindra Bank Ltd, providing specific price targets and technical rationales. Alongside these stock picks, the firm has also shared its detailed technical perspective on the benchmark Nifty 50 and the Bank Nifty indices, which are currently in a phase of consolidation.
Nifty and Bank Nifty: A Phase of Digestion
According to the analysis, Indian benchmark indices extended their consolidation phase for the fourth week in a row. This movement reflects a period of digestion following the recent upward trend. The Nifty traded within a defined range last week but managed to close with a positive bias near the 26,150 level. This recovery was bolstered by supportive global cues, particularly softer-than-anticipated US inflation data, which improved global risk appetite and spurred buying in equity markets.
Looking forward, Bajaj Broking expects the Nifty to continue its consolidation within a broader range of 25,700 to 26,300 in the near term. The index is at a critical juncture, and a decisive breakout from this range is likely to determine the next directional trend. A sustained close above 26,300 could act as a key technical trigger, potentially paving the way for an advance towards the 26,500 zone.
On the support front, immediate cushion is seen near the 26,000 mark, which aligns with Monday's gap-up area. A stronger support band lies between 25,700 and 25,800. This zone represents a confluence of the 50-day exponential moving average (EMA), the lows of the past two weeks, and a significant retracement level of the prior uptrend. Maintaining levels above this support is deemed crucial to preserve the positive momentum built over the last quarter.
Bank Nifty's Range-Bound Action
The Bank Nifty mirrored the broader market, trading in a range as it digested its recent strong gains. The index has been oscillating in a 1,500-point range over the last four weeks. The research anticipates this consolidation to extend, with the index likely forming a base in the 58,500 to 60,100 range in the coming weeks.
A decisive move above last week's high of 59,533 could open the doors for an upward move towards 60,400. The entire uptrend of the last two months appears well-channeled, indicating sustained demand. Key support for the banking index is placed in the 58,300-58,600 band, which is the confluence of the 50-day EMA and a recent breakout area. As long as the index holds above this support, the short-term bias is expected to remain positive.
Stock-Specific Recommendations and Rationale
Bajaj Broking's first pick is Lloyds Metals and Energy. The research advises investors to buy the stock in the price range of ₹1,340 to ₹1,380. The firm has set a 12-month target price of ₹1,523, implying a potential upside of approximately 13% from the upper end of the buying range.
The technical rationale is based on a clear breakout above a falling channel that had constrained the stock's price action for the past six months. This breakout signals a reversal of the prior corrective trend and sets up a fresh bullish opportunity from a positional standpoint. The target of ₹1,523 corresponds to the 80% Fibonacci retracement level of the broader decline from ₹1,612 to ₹1,170.
Kotak Mahindra Bank's Structural Breakout
The second recommendation is Kotak Mahindra Bank. The brokerage suggests buying in the range of ₹2,140 to ₹2,180. The set target for this banking stock is ₹2,380 over a 12-month period, which suggests a potential return of around 10%.
This call is backed by a significant technical development. The stock has witnessed a decisive breakout above its prolonged 5-year consolidation range of ₹1,600–₹2,000. This move marks a substantial improvement in its long-term price structure, indicating a structural turnaround after an extended phase of sideways movement. The target of ₹2,380 is derived from the measured move implication of this multi-year range breakout, painting a constructive medium- to long-term outlook for the stock.
(Disclaimer: The stock recommendations, forecasts, and views expressed in this article are based on the research report from Bajaj Broking. They are for informational purposes only and do not constitute investment advice. Investors are advised to consult with their financial advisors before making any investment decisions.)
