Indian equity benchmarks halted their two-day advance and closed with minor losses on Monday, pressured by weak global cues and ongoing foreign capital withdrawals. Investor sentiment remained cautious amid currency volatility.
Market Performance and Rupee Weakness
The benchmark Sensex declined by 54.30 points, or 0.06%, to settle at 85,213. The broader Nifty 50 index edged lower by 19.65 points, or 0.08%, to close at 26,027.30.
The Indian rupee continued its downward trajectory, closing at a fresh record low. The domestic currency ended at 90.74 against the US dollar, depreciating by 25 paise. It had touched an intraday low of 90.80.
Jateen Trivedi, VP Research Analyst at LKP Securities, attributed the pressure on the rupee to delays in the India-US trade deal and sustained selling by Foreign Institutional Investors (FIIs). He noted that elevated gold and silver prices have further strained the import bill. Trivedi expects the rupee to trade in a range of 90.00 to 91.25 in the near term.
Primary Market Action and Expert Outlook
The primary market remains active. The KSH International IPO, worth ₹710 crore, opened for subscription on Monday, December 16. The public offer, with a price band of ₹365 to ₹384 per share, will close on Wednesday, December 18. Meanwhile, the ICICI Prudential AMC IPO was subscribed 2.11 times as of its second day.
Commenting on the market outlook, Vinod Nair, Head of Research at Geojit Investments, stated that persistent FII outflows and a weak rupee have confined markets to a narrow range. He believes currency volatility will continue until there is clarity on the India-US trade deal.
"Expectations of an earnings recovery in the second half of fiscal year 2026, supported by monetary and fiscal growth drivers, are helping stabilise sentiment," Nair said. He added that future market momentum is expected to be driven by earnings rather than valuations. Investors are also awaiting key US economic data, including CPI inflation and unemployment figures, which will influence global liquidity and interest rate expectations for 2026.
Technical Analysis and Stock Recommendations
Rupak De, Senior Technical Analyst at LKP Securities, observed that the Nifty 50 faced resistance near the 26,050 level. On hourly charts, the index encountered a falling trendline resistance, and the RSI showed a bearish crossover. He anticipates the index to remain range-bound between 25,900 and 26,100, with a decisive break on either side triggering a directional move.
Market analysts recommended several stocks for intraday trading on Monday:
Picks from Sumeet Bagadia (Choice Broking)
Hindustan Zinc: Buy at ₹567, stop loss at ₹547, target ₹607. The stock is in a strong bullish trend after a breakout, trading above all key moving averages.
Federal Bank: Buy at ₹265, stop loss at ₹255, target ₹285. The stock shows sustained bullish momentum, trading above all major EMAs after hitting an all-time high.
Picks from Ganesh Dongre (Anand Rathi)
Hindustan Aeronautics (HAL): Buy at ₹4320, stop loss at ₹4200, target ₹4500. The stock shows a strong bullish pattern with support at ₹4200.
Bharti Airtel: Buy at ₹2070, stop loss at ₹2040, target ₹2125. The stock exhibits a continuous bullish pattern with support at ₹2040.
Marico: Buy at ₹737, stop loss at ₹725, target ₹750. Another stock showing a strong bullish pattern with support at ₹725.
Picks from Shiju Koothupalakkal (Prabhudas Lilladher)
Netweb Technologies: Buy at ₹3330, stop loss at ₹3275, target ₹3500. The stock has revived from the 100-period MA and moved past the 50EMA.
Godawari Power: Buy at ₹247, stop loss at ₹242, target ₹262. The stock shows a higher bottom formation and has moved past the 50EMA.
Thomas Cook: Buy at ₹144, stop loss at ₹141, target ₹154. The stock has stabilised after a correction and shows a positive candle formation.
Disclaimer: This story is for educational purposes only. The views and recommendations are those of individual analysts or broking firms. Investors are advised to consult certified experts before making any investment decisions, as market conditions are dynamic and individual circumstances may vary.
