As the year draws to a close, the Nifty index is stuck around the 26,000 mark. Traders are watching key support levels, foreign investor activity, and a few sector rallies to decide whether the market will hold steady or bounce higher.
Market outlook for the last week of 2025
The recent pull‑back from record highs has reset the market’s base. If Nifty can stay above the 26,000 zone, bulls may aim for 26,550‑26,850. The nearest supports sit at 25,935 and 25,850; a break below could push the index toward 25,740‑25,650.
Foreign investors' positioning
Foreign Institutional Investors (FIIs) are only long on 11.1% of their Nifty futures contracts. On Friday they trimmed long positions by 7.5% and added short futures by 5.6%. Although there’s no clear bullish turn, last week ended with more longs and fewer shorts than the week before, hinting at possible buying support.
Defence stocks show a reversal signal
The Nifty India Defence Index bounced off its 7,400 support level, forming a classic "Morning Star" pattern that often signals a reversal. The index closed above important technical lines such as the Supertrend (7,750) and the 20‑day moving average (7,679). From a futures perspective, short covering was observed, adding to a short‑term bullish view.
Top stock ideas for the week
- DBL (Current price: ₹476) – Suggested action: Buy. Target: ₹495‑₹519. Set a stop‑loss below ₹460. The stock has made a "U"‑shaped recovery, breaking the Supertrend (₹478) and the 20‑day moving average (₹458) with strong volume.
- NBCC (Current price: ₹122) – Suggested action: Buy. Target: ₹124.5‑₹130. Stop‑loss below ₹118. After a pull‑back since August, the stock closed the week with a bullish Marubozu candle and broke above the Supertrend (₹117) on strong buying interest.
Other notable moves
Defence‑related stocks such as HAL, BEL, Solar Industries, Mazagon Dock, GRSE and BDL posted solid weekly reversal patterns, hinting at a possible push toward the 8,050‑8,300 range in the near to medium term.
Jupiter Wagons jumped 34% after promoter buying ahead of the Union Budget, but recent candles suggest the rally may be tiring. Traders might look for sideways moves with support around ₹327‑₹319.
Coforge fell sharply, entering oversold territory. Aggressive traders could consider buying near the low of ₹1,727, but beware of a "dead cat" bounce that could see the price slide toward ₹1,550.
Remember, this is my perspective, not a prediction. Do your own research and consider your risk tolerance before making any trades.