Indian equity benchmarks snapped a four-day losing streak to close sharply higher on Friday, December 19, powered by a stable rupee, positive global signals, and a Bank of Japan policy decision that matched market forecasts.
Market Rally: Key Indices and Broader Performance
The benchmark Sensex surged 448 points, or 0.53%, to settle at 84,929.36. The Nifty 50 index climbed 151 points, or 0.58%, to close at 25,966.40. The rally was not confined to large caps; broader markets saw even stronger gains. The BSE Midcap index rose 1.26%, and the BSE Smallcap index advanced 1.25%.
Heavyweight Reliance Industries led the charge on the Sensex, with HDFC Bank being the next major contributor. The collective market valuation of companies listed on the Bombay Stock Exchange swelled significantly, jumping to over ₹471 lakh crore from ₹465.8 lakh crore in the prior session. This single-day surge translated into an increase in investor wealth of more than ₹5 lakh crore.
Expert View: Sectoral Strength Amidst Weekly Dip
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, noted that while the Nifty 50 ended the week marginally lower by 0.45%, the sectoral performance was encouraging. "The telecom sector led the rally by gaining nearly 1%. Pharma and FMCG stocks also posted notable advances, reflecting broad-based buying interest across key segments of the market and indicating underlying strength beneath the headline index movement," Dongre stated.
Technical Outlook for Nifty and Bank Nifty
Analyzing the market outlook for the coming week, Dongre highlighted crucial technical levels. He observed that the Nifty continues to hold comfortably above its previous support zone of 25,600–25,700.
For Nifty 50: Fresh support is now identified in the 25,500–25,600 range, while immediate resistance lies between 26,100 and 26,300. Derivatives data supports this, with high Call open interest at 26,000 and 26,500 strikes indicating resistance. Significant Put open interest at 25,800 and 25,500 underscores a solid support base. "Any corrective move towards the 25,800–25,500 zone could therefore offer favourable stock-specific buying opportunities," Dongre advised.
For Bank Nifty: The banking index consolidated sideways during the week, aided by steady recoveries in private banks. It remains well above the key support band of 57,500–58,000, with major resistance seen in the 60,000–60,500 zone.
Market Strategy and Stock Recommendations
Dongre concluded that the broader market structure is expected to remain positive as long as the Nifty sustains above 25,600 and the Bank Nifty holds above 58,000. With the Nifty facing resistance in the 26,300–26,500 zone and Bank Nifty near 61,000, he recommended a disciplined buy-on-dips strategy in selective stocks, while keeping an eye on global cues.
The analyst also shared specific weekly stock ideas:
- Aurobindo Pharma: Buy in the range of ₹1220-1230; Target Price: ₹1270; Stop Loss: ₹1180.
- IndusInd Bank: Buy in the range of ₹840-845; Target Price: ₹880; Stop Loss: ₹820.
- Bharat Forge: Buy in the range of ₹1440-1450; Target Price: ₹1500; Stop Loss: ₹1400.
Disclaimer: The views and recommendations above are those of individual analysts and broking companies. Investors are advised to consult certified experts before making any investment decision.
