Market Outlook: Technical Call Of The Day & Top 5 Stocks In Focus For 18th Dec 2025

The Nifty 50 continued its downward trend for a third straight session on December 17, though selective buying emerged at lower levels. The benchmark ended marginally below the 50% Fibonacci retracement of the recent upswing from the November trough to the December peak. During the session, it edged closer to key supports such as the 50-day EMA at 25,765, the previous week’s low of 25,693, and even tested the lower Bollinger Band intraday. Bank Nifty also slipped alongside the broader market. Meanwhile, India VIX declined 2.24% to an all-time closing low of 9.84, reflecting market calm and bullish comfort, though such low volatility also leaves room for a sharp move in either direction.

If the Nifty 50 decisively breaks and sustains below the prior week’s low, intensified selling pressure could drag the index toward the 25,500 zone. On the flip side, any recovery attempt would face stiff resistance in the 26,000–26,100 range. The index opened on a positive note and climbed to an intraday high of 25,929, but those gains were erased within the first hour. Selling pressure intensified as the session progressed, with the Nifty closing at 25,819, down 42 points. The daily chart formed a bearish candle with both upper and lower shadows, highlighting weakness amid intraday volatility.

Technically, the index stayed below short-term moving averages and the Bollinger Band midline. Momentum indicators painted a cautious picture: the RSI slipped to 46.47, the Stochastic RSI turned negative, and the MACD remained below its signal line with a weakening histogram, all pointing toward a bearish bias. The earlier swing low area of 25,700–25,650 remains a crucial support band. A breakdown below 25,650 could accelerate the correction toward 25,500. On the upside, resistance is placed in the 25,950–26,000 zone, and only a sustained move above 26,000 may trigger a pullback rally toward 26,200.

Weekly options data suggest a near-term trading range of 25,500–26,000 for the Nifty. The highest Call open interest was concentrated at the 26,000 strike, followed by 25,900 and 26,300, with notable Call writing at 26,000, 25,900, and 25,850. On the Put side, the 25,500 strike carried maximum open interest, followed by 25,800 and 25,300, while fresh Put writing was seen at 25,800, 25,350, and 25,400. Bank Nifty also ended lower, closing at a one-week low of 58,927, down 108 points. The index formed a bearish candle on the daily timeframe and nearly tested the previous week’s low of 58,800 intraday. A convincing break below this level could invite stronger bearish action.

The banking index remained below its short-term averages, with momentum indicators reinforcing the cautious outlook. The RSI continues to make lower highs, signalling fading strength. Immediate support lies near 58,800, while resistance is seen around 59,300. A decisive breach below 58,800 could pull the index toward its 50-day SMA near 58,350. On the stock-specific front, Shriram Finance, SBI, Eicher Motors, Hindalco Industries, and Tata Consumer emerged as top gainers on the Nifty, while Max Healthcare, SBI Life Insurance, HDFC Life, Trent, and Apollo Hospitals weighed on the index. Sectorally, the PSU Bank index rose 1.2%, whereas the Media index declined 2%. Private Banks, Realty, Consumer Durables, FMCG, and Healthcare sectors slipped between 0.4% and 1%.

M&MFIN - TECHNICAL CALL OF THE DAY  

Stock has bounced up from its 50 DEMA support zones with high traded volumes. The Stochastic indicator has exited its oversold zones suggesting positive momentum. 

Buy M&MFIN CMP 352 SL 340 TGT 375

Top 5 stocks to watch out for 18th Dec 2025

Shriram Finance - Board is set to meet this Friday or December 19, to consider proposal to raise funds. The reported deal with Japan's Mitsubishi UFJ Financial Group (MUFG) to acquire minority stake in the gold financier is also likely to be on the agenda.

Aurionpro bags multi-year transaction banking deal from Indian PSU bank – Company said it has won a multi-year transaction banking contract from a leading public sector bank, bolstering its presence in the fast-growing digital cash management and corporate banking technology market.  

Kaynes Technology - Company has entered into two strategic collaborations with global technology majors—Japan’s AOI Electronics Co and Mitsui & Co—to bolster its planned semiconductor manufacturing activities in India.

Vodafone Idea - The government is not expected to take an immediate decision on a relief package for Vodafone Idea (Vi), with the Centre adopting a measured and cautious approach, according to government sources familiar with the matter. Sources said the government is careful about taking any step that could have a direct bearing on the company’s valuation, particularly given its 49% equity stake in the telecom operator following the conversion of statutory dues into equity.

L&T – Company announced through an exchange filing that it has won orders worth Rs 2500cr- Rs 5000cr for building and factories business in Madhya Pradesh.