Published on: 31 Dec, 2025 08:30

Markets anticipate a flat-to-positive opening on the final trading day of 2025, supported by a potential gap-up in GIFT Nifty, though tempered by persistent FII outflows.

Key Themes & Picks

  • GIFT Nifty signals a gap-up opening despite mixed global cues.

  • Metals, banking, and autos lead on demand and festive tailwinds.

  • Key picks: Tata Steel, Bajaj Auto, and Indian Bank highlighted.

  • Persistent FII outflows for six sessions cap broader upside.

  • Overall sentiment leans bullish in cyclical sectors.

As the Indian stock market concludes 2025 on its final trading day, benchmarks are expected to open flat amid subdued year-end volumes and persistent foreign outflows. GIFT Nifty indicated a mildly positive start, but thin participation and mixed global cues are likely to keep movements range-bound. Overnight US markets closed lower on profit-taking, while Asian peers traded mixed.

Key themes include selective buying in metals and autos, supported by technical breakouts, alongside resilience in public sector banking. Around 25 fresh recommendations were identified from sources like Choice Broking (via Livemint), LKP Securities, Bonanza Portfolio, Business Standard, and MarketSmith India. Overall sentiment tilts bullish on dips, with standout calls on metals names like Tata Steel and Jindal Steel, and autos like Bajaj Auto.

Section 1: Index Outlook

Analysts expect consolidation with support-based buying. Foreign outflows remain a drag, but domestic inflows provide cushion.

Index Recommendation Target/Range Key Driver Source
Nifty 50 Neutral-Hold 25,700–26,250 Range-bound trade; support at lower zones Business Standard
Sensex Flat 84,500–85,500 Year-end positioning; mixed cues Livemint
Bank Nifty Bullish on dips 58,500–59,750 Recovery from supports; outperformance Business Standard

Section 2: Sector-Wise Stock Picks

Metals & Mining

  • Jindal Steel (JINDALSTEL.NS): Buy, Target: ₹1,093 (~7% upside), Rationale: Reversal from 200-day EMA with breakout above falling trendline. Source: Choice Broking (Livemint).
  • Hindalco (HINDALCO.NS): Buy above ₹885, Target: ₹945 (~7% upside), Rationale: Strong demand rebound signals. Source: Raja Venkatraman (Livemint).
  • Tata Steel (TATASTEEL.NS): Buy at ₹175, Target: ₹188-190 (~7-8% upside), Rationale: Consolidation breakout with bullish RSI and volume support. Source: LKP Securities / HDFC Securities (Economic Times).
  • Jindal Stainless (JSL.NS): Buy, Target: ₹870 (~4% upside), Rationale: Bullish candle post-consolidation. Source: Business Standard.
  • Godawari Power and Ispat (GPIL.NS): Buy, Target: ₹285 (~8% upside), Rationale: Rounding bottom with accumulation. Source: Choice Broking (Livemint).

Banking & Financials

  • Indian Bank (INDIANB.NS): Buy, Target: ₹865-875 (~7-8% upside), Rationale: Consolidation breakout with EMA support. Source: Choice Broking / HDFC Securities.
  • Canara Bank (CANBK.NS): Buy, Target: ₹166 (~8% upside), Rationale: Uptrend with rising ADX. Source: Business Standard.
  • Poonawalla Fincorp (POONAWALLA.NS): Buy at ₹484, Target: ₹510 (~5% upside), Rationale: Trendline breakout. Source: Bonanza Portfolio (Economic Times).
  • Federal Bank (FEDERALBNK.NS): Buy at ₹267, Target: ₹280 (~5% upside), Rationale: Higher highs/lows with bullish divergence. Source: LKP Securities.
  • Choice International: Buy ₹820–840, Target: ₹920 (~11% upside), Rationale: Bullish momentum in diversified financials. Source: MarketSmith India (Livemint).

Auto & Ancillaries

  • Bajaj Auto (BAJAJAUTO.NS): Buy, Target: ₹9,750-9,800 (~5-6% upside), Rationale: Triangle breakout with RSI confirmation. Source: Business Standard / LKP Securities.

Power & Energy

  • Adani Power (ADANIPOWER.NS): Buy, Target: ₹156 (~8% upside), Rationale: Consolidation near EMA with upward RSI. Source: Choice Broking.
  • Adani Energy Solutions: Buy at ₹1,024, Target: ₹1,080–1,100 (~7% upside), Rationale: Momentum resumption. Source: Bonanza Portfolio (Economic Times).

Consumer & Others

  • Radico Khaitan (RADICO.NS): Buy, Target: ₹3,615 (~7% upside), Rationale: Rebound from EMA support. Source: Choice Broking.
  • UPL.NS: Buy above ₹789, Target: ₹807 (~2% upside), Rationale: Oversold rebound. Source: Raja Venkatraman.
  • FSN E-Commerce Ventures (Nykaa): Buy ₹262–268, Target: ₹298 (~13% upside), Rationale: Reclaimed key DMA. Source: MarketSmith India.
  • Godrej Properties (GODREJPROP.NS): Sell below ₹1,975, Target: ₹1,930 (~2% downside), Rationale: Bearish signals below supports. Source: Raja Venkatraman.

Section 3: Global & Thematic Insights

Global views remain constructive on India, with Morgan Stanley noting private equity potential amid reforms. No new India-specific calls today from majors. BSE/NSE highlights include RITES' $3.6M order and Bharat Forge's ₹1,662 crore defence contract, boosting infrastructure/defence themes. Coal India consensus shows mild upside (~1.3%) per Trendlyne.

Conclusion & Disclaimer

Sentiment neutral-bullish with focus on metals, banking, and autos. Watch Tata Steel and Bajaj Auto for momentum; monitor FII trends into 2026.

This is aggregated data for informational purposes; consult a financial advisor. Not investment advice. Pre-market snapshot – updates may evolve.

Sources

 
 



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