Top stock picks for December 18 by Religare Broking; check key levels here

Market View 

Markets remained volatile on Wednesday and ended with a marginal decline, in line with the ongoing corrective phase. After an initial uptick, the Nifty quickly resumed its downward trajectory and gradually drifted lower through the session, eventually closing at 25,818.55, down 0.16 per cent. Sectoral performance was largely negative, with realty, FMCG and financials emerging as the key laggards. In contrast, IT and metals managed to buck the broader trend and closed flat to marginally higher. Continued pressure in the broader market weighed on sentiment, with the midcap and smallcap indices declining in the range of 0.66 per cent–0.83 per cent. 

Early optimism faded as the session progressed, despite some easing in currency pressure. Selling in heavyweight stocks across sectors led to broad-based weakness, while muted cues from global markets further dampened investor sentiment.

  Looking ahead, choppy price action is likely to persist amid ongoing currency swings and mixed global signals. The prevailing trend points to continued consolidation around key levels, with the next support placed near the recent swing low of 25,700. A decisive break below this level could intensify selling pressure toward 25,450, while immediate resistance is seen in the 25,950–26,050 zone. Participants are advised to adopt a stock-specific approach, keep position sizes in check, and remain mindful of risk management in the current volatile environment.

 

Stocks Recommendations

 

Britannia Industries Limited | LTP: ₹ 6096 | Recommendation: Buy | Target: ₹ 6470 | Stop-loss: ₹ 5880

  The FMCG space continues to witness a mixed trend, with Britannia emerging as a relative outperformer, gradually trending higher over the past nine months. After breaking out of a Cup & Handle continuation pattern, the stock saw a mild retracement and has since formed a fresh base, indicating healthy consolidation. The broader structure remains firmly placed within a strong uptrend, and the recent range breakout suggests potential for further upside. Additionally, the weekly RSI has

registered a fresh bullish crossover, pointing to a revival in positive momentum. In view of the supportive technical structure, traders may consider initiating long positions in the stock within the specified parameters.

 

Infosys Limited | LTP: ₹ 1602 | Recommendation: Buy | Target: ₹ 1710 | Stop-loss: ₹1550

  The IT index is showing early signs of a trend reversal following a prolonged corrective phase, aided by sustained weakness in the rupee, which remains supportive for the sector. In line with this broader trend, Infosys has demonstrated resilience after breaking out of an ascending triangle pattern formed near the base of its prior decline, signaling a potential reversal. The stock has established a firm pivot while holding above its moving averages ribbon, reflecting improving price strength. Given the favorable sectoral backdrop and positive technical structure, the stock is likely to witness continuation of buying interest.

 

One 97 Communications Limited | LTP: ₹ 1270.50 | Recommendation: Sell Futures | Target: ₹ 1180 | Stop-loss: ₹ 1320

  After a strong rally since March 2025, Paytm is showing early signs of exhaustion. On the technical front, it has been displaying a clear negative divergence between price action and the RSI indicator and is now drifting toward its previous swing low. Adding to the bearish bias, the price has slipped below its short-term moving averages, namely the 20-day and 50-day EMAs, confirming emerging weakness. As long as the stock remains below ₹1,320, the downside bias is expected to persist. Traders may therefore consider initiating short positions as per the mentioned levels.

 

Disclaimer: Ajit Mishra is senior vice president of research at Religare Broking. Views expressed are his own.