Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday

The Bank Nifty closed slightly higher by 71.85 points at 59,461.80 on Monday, while the Nifty index ended mostly muted, falling only 19.65 points to conclude at 26,027.30. Price action highlighted resilience as selling pressure at lower levels continues to be absorbed. The India VIX increased slightly by 1.41 percent to 10.25, indicating volatility remained gentle amid ongoing optimism along with anticipation of range-bound activity. The US non-farm payrolls, retail sales, unemployment rate, and manufacturing PMI are among the key global economic statistics that are scheduled today and will be widely monitored.

Nifty Outlook Today

"Nifty's ability to hold key support levels and recover swiftly from intraday declines suggests that dips are increasingly being viewed as accumulation opportunities. However, the broader structure remains delicate due to the ongoing lower-high formation, with sellers still active near the 26,200 zone. The 25,800-25,900 band has now emerged as a decisive demand area and will be crucial to sustaining near-term stability," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"The shift of call writers towards higher strikes, coupled with active put writing near at-the-money levels, further supports the prevailing range-bound bias. A decisive and sustained breakout above 26,200 could reignite bullish momentum and pave the way toward the 26,350 mark. Conversely, a breakdown below 25,900 would weaken the broader structure and may invite fresh selling pressure, potentially dragging the index toward 25,700 and extending the consolidation phase," he further added.

Bank Nifty Outlook Today

"Nifty Bank's ability to consistently defend its support levels and rebound from intraday declines suggests that lower levels continue to attract buying interest, making dips relatively favourable for accumulation. That said, the broader structure remains delicate, as the index has yet to display convincing bullish follow-through-indicating that sellers remain active in the 59,500-59,700 zone. The 58,800-58,900 band now stands out as a critical demand zone and will be pivotal in maintaining near-term stability," Dhupesh Dhameja claimed.

"With both call and put writers adding comparable positions near at-the-money strikes, the options data clearly points to a constructive yet range-bound setup. As long as the index trades within this band, a phase of consolidation is likely to persist. A sustained breakout above 59,700 could revive bullish momentum and open the path toward the 60,100 mark," he stated.

"Conversely, a decisive breach below 58,800 would weaken the broader structure and may trigger accelerated selling, potentially dragging the index toward 58,500 and extending the consolidation phase further," the analyst further added.

Stocks To Buy Today

Technical analyst Riyank Arora of Mehta Equities Ltd. recommended buying two stocks on Tuesday, December 16, after the Nifty continued to rise above its short-term moving averages. The MACD stays flat, signaling a halt rather than a reversal, while the RSI is staying around 54, indicating neutral momentum.

Glenmark Pharma

Buy | CMP: Rs 1,985.60 | SL: Rs 1,930 | Target: Rs 2,050 / Rs 2,120

Glenmark is maintaining a strong bullish structure, supported by consistent buying at lower levels. The stock is forming higher lows and trading above key moving averages. Momentum indicators are supportive, indicating further upside potential. A move above ₹2,000 can trigger the next leg of the rally toward ₹2,050 and ₹2,120. Stop-loss is placed at ₹1,930.

LIC Housing Finance

Buy | CMP: Rs 531.45 | SL: Rs 510 | Target: Rs 555 / Rs 575

LIC Housing Finance is attempting a recovery after holding firmly near the ₹510 support zone. The stock is showing signs of base formation, with RSI gradually turning upward from lower levels. A sustained move above ₹535 could strengthen bullish momentum and push the stock toward ₹555 and ₹575. Traders can consider fresh longs with a stop-loss at ₹510.

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