The Indian stock market, as measured by the Nifty 50, experienced a decline of approximately half a percent for the week ending December 12. This marks the second consecutive week of losses, primarily due to the rupee's weakness, ongoing foreign capital outflow, and uncertainty surrounding an India-US trade deal.
Despite these challenges, India remains a bright spot in the global economy. The country's retail inflation rose to 0.71% in November, and the Asian Development Bank (ADB) has increased India's growth forecast for FY26 to 7.2%, up from the 6.5% projected in September. This indicates a positive outlook for the Indian economy.
From a technical standpoint, the Nifty has maintained its position above 26,000 after testing the crucial support level of 25,700 last week. According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the Nifty's rebound from this support level preserves the broader consolidation structure, resembling the formation of a handle in a long-term cup-and-handle pattern.
Patel notes that the immediate resistance is seen near 26,100, marked by a declining trendline. A decisive move above this zone is necessary to revive momentum. Beyond that, 26,300–26,350 remains the critical breakout area, above which the index could extend toward 26,600 in the near term. The broader outlook remains constructive, with medium-term objectives of 28,000–30,000+ still valid into mid-2026.
Based on technical analysis, Patel recommends the following three stocks for short-term investment:
These recommendations are based on the experts' analysis and should not be considered as investment advice. It is essential to consult with certified experts before making any investment decisions.
The Indian stock market is expected to remain volatile in the short term, but the overall outlook remains positive. Investors should focus on stock-specific opportunities and consider the expert recommendations for short-term gains. However, it is crucial to maintain a long-term perspective and consult with certified experts before making any investment decisions.
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