Stock recommendations for 23 December from MarketSmith India

Extending gains to the second consecutive session, the Sensex ended 638 points, or 0.75%, higher at 85,567.48, while the Nifty 50 closed at 26,172.40, gaining 206 points, or 0.79%. The BSE Midcap index rose by 0.86% and the Smallcap index jumped 1.12%. Investors earned about ₹4 trillion in a single session, with market capitalization of BSE-listed firms rose to ₹475 trillion.

On the Sensex, Infosys, Bharti Airtel, and ICICI Bank were among the top contributors to the gains in the benchmarks. Only three stocks–State Bank of India, Kotak Mahindra Bank, and Larsen and Toubro–ended in the red.

Two stock recommendations for today by MarketSmith India

Buy: Jain Resource Recycling Ltd (current price: ₹420)

• Why it’s recommended: Rising demand for recycled metals (aluminium, copper, ferrous scrap), and strong sourcing network, and expanding processing capacities
• Key metrics: P/E: N/A, 52-week high: ₹1,745, volume: ₹158 crore
• Technical analysis: Trendline breakout
• Risk factors: High commodity price volatility, regulatory and environmental compliance risks
• Buy at: ₹415–422
• Target price: ₹490 in two to three months
• Stop loss: ₹390

Buy: Aditya Infotech Ltd (current price: ₹1,599)

• Why it’s recommended: Growing demand for digital transformation, surveillance, AI-based security, and IT infrastructure, diverse client base across government, enterprise, and BFSI
• Key metrics: P/E: N/A; 52-week high: ₹1,745; volume: ₹ 22.73 crore
• Technical analysis: Trendline breakout
• Risk factors: High dependence on government/enterprise project cycles, intense competition in IT & surveillance segments
• Buy at: ₹1,590–1,610
• Target price: ₹1,850 in two to three months
• Stop loss: ₹ 1,496

How the Nifty 50 performed on Monday

Indian equities ended Monday’s session on a firm footing, with benchmarks extending gains amid broad-based buying. Nifty 50 settled at 26,172.4, up 206 points or 0.79%, after trading within a narrow intraday range and holding above 26,000 throughout the session.

Sensex also closed higher in tandem, reflecting sustained investor confidence. Market breadth was decisively positive, with 2,255 stocks advancing against 924 declines, underscoring strong underlying participation across segments. On the sectoral front, IT stocks outperformed, with Nifty IT index rising more than 2%, aided by selective buying in large-cap names.

Metals, FMCG, Pharma, and Auto also contributed to the upside, while Banks posted modest gains, led by private lenders. Nifty Consumer Durables was the lone pocket of mild weakness. Mid and small-cap stocks continued to see healthy interest, particularly in healthcare and select industrial plays.

From a technical standpoint, Nifty 50 continues to display constructive price action, with the index sustaining a position above its rising short-term and medium-term moving averages, therein reinforcing the prevailing bullish bias. The recent rebound from lower levels has respected the upward-sloping trendline, highlighting the presence of buyers on intraday and positional declines and confirming the integrity of the ongoing uptrend.

volatasMomentum indicators are also turning supportive. The relative strength index (RSI) has moved back above its signal line and is trending upward, suggesting a recovery in bullish momentum without entering overbought territory. This indicates scope for further upside while maintaining healthy momentum conditions. Meanwhile, the MACD remains below its peak but shows early signs of stabilization, with the histogram contracting on the negative side, pointing to a gradual reduction in bearish momentum.

According to O'Neil’s methodology of market direction, the market status has shifted to a "Confirmed Uptrend" as it decisively surpassed its previous rally high of 25,670 to register a new 52-week.

The index delivered a strong close, comfortably reclaiming the 21-DMA and holding above the key psychological mark of 26,000, which reinforces near-term bullish sentiment. From here, a decisive close above 26,300 would meaningfully improve the technical setup and is likely to open the door for a continuation of the ongoing rally toward 26,500–26,700 in the near term. On the downside, 25,700 serves as the first level to monitor for any corrective move, while 25,300 represents a critical demand area.

How did Nifty Bank perform?

Bank Nifty showcased a resilient performance on Monday (December 22, 2025), closing at 59,304.00 with a modest gain of 234.80 points (0.40%). While the broader Nifty 50 outpaced the banking gauge during the session, sentiment within the financial space remained constructive, evidenced by a decisively positive advance-decline ratio of 10:2.

Leading the rally was PNB (+1.62%), followed by IndusInd Bank (+1.34%) and ICICI Bank (+0.99%), as value buying emerged in both PSU and private heavyweights. Conversely, mild selling pressure in SBIN (-0.59%) and Kotak Bank (-0.57%) capped the index's upside potential. The sector's broader sentiment was bolstered by the landmark $4.4B FDI deal involving Japan’s MUFG and Shriram Finance, which signaled renewed global institutional interest in Indian financial services.

Bank Nifty continues to exhibit a constructive technical structure, with price action consolidating after a strong prior uptrend. The index has managed to hold above its rising short- and medium-term moving averages, indicating that the broader trend remains intact despite recent sideways movement. Momentum indicators present a mixed but stabilizing picture. The RSI is hovering in the mid-50s range, neither overbought nor oversold, suggesting neutral momentum with scope for a fresh directional move once consolidation resolves. Importantly, RSI has cooled off without breaking into weak territory, which is typically seen as a healthy pause within an ongoing trend. The MACD remains below its recent peak and is in a mild corrective phase, with the histogram indicating waning negative momentum, hinting at a potential flattening or early stabilization.

The index managed to close above its 21-DMA, which is a constructive technical development. A swift rebound followed by sustained closes above the 21-DMA would be an encouraging signal, as it would help reassert bullish momentum and reinforce the prevailing positive trend. On the upside, the recent peak in 59,800–60,100 remains a key resistance band to monitor, as a decisive move beyond this range would be required to unlock further upside potential. On the downside, 58,500–58,000 continues to act as a structurally important demand area, underpinned by sustained investor appetite across major banking constituents.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.