Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday

The Nifty index ended Wednesday mostly muted, falling 41.55 points to settle at 26,818.55 while being firmly positioned between the 20- and 50-day exponential moving averages (DEMA), a configuration that highlights ongoing volatility in the near future. On Wednesday, however, the Bank Nifty index closed at 58,926.75, down 107.85 points, almost flat. The India VIX finished at 9.84, indicating muted volatility; but, given that the index has bounced from this range several times, volatility may increase in the days to come.

NIfty Outlook Today

"Nifty continues to face selling pressure on every rebound attempt, keeping the index in a fragile state. The broader structure remains delicate amid the ongoing lower-high formation, with sellers firmly entrenched near the 26,100-26,200 zone. On the downside, the 25,800-25,700 band has emerged as a critical demand area and will be pivotal in maintaining near-term stability," commented Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"The shift of call writing closer to at-the-money strikes, along with the partial migration of put writing toward lower levels, reinforces the prevailing range-bound bias. A decisive and sustained move above 26,200 could revive bullish momentum and open the door for a move toward the 26,350 zone. Conversely, a breakdown below 25,800 would weaken the broader structure and may trigger fresh selling pressure, potentially dragging the index toward 25,700 and extending the ongoing consolidation phase," Dhupesh Dhameja added.

Bank Nifty Outlook Today

"Nifty Bank continues to encounter resistance on every rebound attempt, keeping the index in a fragile state. The broader structure remains delicate amid the persistent lower-high formation, with sellers actively defending the 59,500-59,700 supply zone. On the downside, the 58,700-58,600 band has emerged as a crucial demand pocket and will be instrumental in preserving near-term stability," Dhupesh Dhameja stated.

"The shift of call writing toward at-the-money strikes, coupled with the partial migration of put writing to lower levels, further reinforces the prevailing range-bound bias. A decisive and sustained breakout above 59,700 could revive bullish momentum and open the door for a move toward the 60,100 zone," he added.

"Conversely, a breakdown below 58,600 would weaken the broader setup and may trigger fresh selling pressure, potentially dragging the index toward 58,000 and extending the ongoing consolidation phase," Dhupesh Dhameja further commented.

Stocks To Buy Today

Technical analyst Riyank Arora of Mehta Equities Ltd. recommended buying two equities on Thursday, December 18, after the Nifty dropped below the 9-day average at 26,000 and remained trapped below the middle Bollinger Band, suggesting a lack of short-term momentum.

Muthoot Finance

Buy | CMP: Rs 3,766.60 | SL: Rs 3,620 | Target: Rs 3,900 / Rs 4,020

Muthoot Finance has corrected from higher levels but continues to trade above its major support zone near ₹3,620. The long-term trend remains intact, and the current dip appears corrective in nature. Momentum indicators are easing, suggesting a potential rebound. A sustained move above ₹3,800 may lead to targets of ₹3,900 and ₹4,020. SL at ₹3,620.

Reliance Industries

Buy | CMP: Rs 1,544.40 | SL: Rs 1,505 | Target: Rs 1,585 / Rs 1,620

Reliance is forming a stable base after consolidation and is holding above its crucial support at ₹1,505. The stock is gradually showing signs of accumulation, with RSI turning upward from neutral levels. A breakout above ₹1,555 could trigger a fresh move toward ₹1,585 and ₹1,620. Maintain SL at ₹1,505.

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