NIFTY Index Chart Analysis

December, historically one of the best-performing months for the Indian equity benchmark indices, with the Nifty 50 index gaining an average of about 2.90 per cent since 2002, has so far been volatile this year. As of December 9, 2025, barring a couple of trading sessions where the market closed in positive territory — mainly due to the RBI rate cut — most sessions have ended in the red. The rupee depreciation, coupled with a lack of concrete announcements regarding the India-U.S. trade deal, has kept market participants on edge. The Nifty 50 index has corrected by about 600 points from its all-time high at the start of December. This correction brings the index closer to a key support zone of 25,670 – 25,700, a confluence of the 50-DMA and the 61.8 per cent retracement level of the NovemberDecember rally. Additionally, the support from the opening upside gap on November 12 lies within this region, making it a crucial level to watch in the short term.[EasyDNNnews:PaidContentStart]

After a gap-up opening on November 12, the index has been trading in a broad range of 25,700-26,326. This consolidation within a 600-point range is due to a lack of broad market participation. While index heavyweights have helped keep the frontline indices afloat, broader market indices such as the Nifty Midcap 100 and Smallcap 100 have been underperforming.

In fact, the Nifty Smallcap index has fallen to levels last seen in mid-May 2025, even breaching the important support level of the 200-DMA.On Tuesday, the Nifty 50 index extended its decline for the second consecutive session. However, it recovered over 100 points from the day’s low and formed a high-wave candle. The index is now 0.73 per cent below the 20-DMA and trading just 0.66 per cent above the 50-DMA. Importantly, the index closed below the previous three-week low, and the 8EMA has undercut the 20-DMA after a month. While the index managed to close above the 10-week average, it moved below it on an Intraday basis. The November 12 opening upside gap area has provided support to the index.

For the bulls to regain strength, the first key level to watch is the index closing above the high of the high-wave candle at 25,924. Immediately thereafter, the bulls need to push the index above 26,000, as this would negate the bearish implications of a breakdown of the rising trendline formed by key lows from September onwards. Failure to break through the 26,000 level in the next couple of trading sessions would be a negative sign for the bulls. On the other hand, sustaining above the 26,000 level would open the gates for a move toward 26,300-26,350.

The 14-period daily RSI has slipped below the 50 level, but it is approaching a key support level defined by the rising trendline connecting lows from August 2025. The MACD histogram shows an increase in bearish momentum, and the Bollinger Bands have further contracted. Overall, the index has been oscillating within a 600-point range, and a breakout in either direction could lead to a quick 400-600 point move in the short term. Therefore, it is crucial to watch levels closely.

STOCK RECOMMENDATIONS
PB Fintech ..................................... BUY ............................ CMP ₹1,957.75
BSE Code : 543390
Target 1 .... ₹2,080 
Target 2 ..... ₹2,140 
Stoploss....₹1,870 (CLS)

Since its inception in 2008, PB Fintech has expanded in depth, breadth, and adjacencies, achieving both forward and backward integration across the value chain, enabled by technology, geographic expansion, and strategic synergies in related businesses. The company’s evolution continues, driven by its flagship brands, Policybazaar and Paisabazaar, which remain at the forefront of transforming India’s digital financial services landscape. The platforms have become the nation’s largest online marketplaces for insurance and credit products, respectively. Beyond the market leadership, they serve as catalysts for advancing financial inclusion across India by fostering greater financial literacy and awareness.

The stock closed at the prior pivot of a 74-day cup pattern. It also closed at the 26-week double-bottom pattern. The stock is trading above all key averages. The Bollinger bands are expanding. It is trading 9.57 per cent above the 50 DMA. The moving average ribbon is in the uptrend. The MACD is bullish and above the zero line. The RSI shifted its range into the bullish zone. The KST and the stochastic RSI have been bullish. The Elder impulse system has formed a series of bullish bars. In short, the stock is about to register a bullish breakout. A move above ₹1,940 is positive and it can test ₹2,080 - ₹2,140. Maintain a stop loss at ₹1,870.

Shriram Pistons & Rings Ltd ....................... BUY ................... CMP ₹3,137.85
BSE Code : 544344
Target 1 ...... ₹3,300
Target 2 ..... ₹3,450 
Stoploss.....₹2,940 (CLS)

I ncorporated in 1963, Shriram Pistons & Rings Ltd. (SPRL) has emerged as a prominent leader in manufacturing of pistons, piston pins, piston rings and engine valves in India and is the largest exporter to the world’s OEMs and aftermarkets. Marketed under brands ‘SPR’ and ‘USHA’, it has diversified presence across commercial vehicles, passenger vehicles, farm equipment, off-highway vehicles and industrial engines & gensets along with Railways and Defence applications. Department of Scientific and Industrial Research (DSIR) approved ultra-modern R&D tech centre, long-standing global technological collaborations with names like Kolbenschmidt, Riken, Honda Foundry and Fuji Oozx, aided by 9 state-of-the-art manufacturing facilities, makes a mark of SPRL’s technological excellence in the global clientele’s prerequisites.

The stock has broken out of an 8-flat base and closed at an all-time high. The massive volume validates the breakout. It is well placed above all long and short-term averages, and all of them are in the uptrend. The Bollinger bands began to expand. Trading 12.10 per cent above the 50 DMA. The moving average ribbon is in the uptrend. The stock is meeting most of the CANSLIM characteristics. The MACD has given a fresh bullish signal on the zero line. The RSI shifted its range into the bullish zone. The KST has also given a fresh bullish signal. The stochastic RSI has been bullish. The Elder impulse system has formed a strong bullish bar. In short, the stock registered a bullish breakout. The stock can test the level of ₹3,300 and ₹3,450 in the medium term. Maintain a stop loss at ₹2,940.

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