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Nifty Outlook & Top Stock Picks for 2026 | IPO Wave Set to Expand

As 2025 comes to a close, the Nifty 50 has been under pressure, falling 0.4% on December 29, marking its third consecutive session of losses ahead of the December F&O expiry. The index has slipped below short-term moving averages, with momentum indicators turning bearish, signaling caution for traders.

Key Support & Resistance Levels:

  • Immediate support: 50-day EMA around 25,830
  • Critical support zone: 25,726 – a decisive break below this could negate the higher-high higher-low structure, favoring the bears.
  • Upside scenario: A sustained rebound above these levels could revive the uptrend, opening a target toward 26,300.

Global & Domestic Sentiment:

  • Global cues remain subdued on the penultimate trading day of 2025.
  • GIFT Nifty signals a weak start, reflecting muted investor confidence.

Top Stock Bets for 2026:
Experts suggest focusing on stocks with:

  • Strong earnings visibility
  • Large-cap stability
  • Sector tailwinds, particularly in technology, metals, and financials

IPO Wave Continues:

  • 2025 was a record year for IPOs, and 2026 is expected to be even bigger.
  • Investors may need to balance the excitement with caution, analyzing valuation levels and business fundamentals before subscribing.

In short, while short-term pressure persists, Nifty’s best-case scenario could see a recovery toward 26,300 if key supports hold. Investors should remain selective in stock picking and stay alert to the broader market cues as 2026 begins.

If you want, I can also create a simple table of Nifty’s key levels and top sector bets for 2026 to make this outlook blog-ready. Do you want me to do that?

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