Stocks To Buy Today, Dec 31: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday

After three straight months of gains, the Nifty index ended its monthly expiry on a somber note with a negative finish. Throughout the session on Tuesday, the Nifty mostly oscillated inside its recent band and ended nearly unchanged. At 25,938.85, the index saw a modest decline of 3.25 points. After three straight months of advances, the Nifty Bank index concluded its monthly expiry on a sad note with a negative finish. The index showed fragile resiliency on Tuesday, rising rapidly from lower levels, but there wasn't much significant follow-through buying. Nifty Bank managed to close above the highs of the preceding two sessions, closing higher by 238.90 points at 59,171.25. With the India VIX climbing slightly by 0.44 percent to 9.67, volatility increased barely while being within a low-volatility regime.

Nifty Outlook Today

"Nifty remains devoid of a clear directional bias and continues to trade firmly within its broader range. Declines are consistently being absorbed near support zones, preventing sharp corrections, while rallies are facing rejection amid the prevailing lower-high structure. This ongoing tug of war underscores a prolonged consolidation phase, where buyers are defending key supports but sellers are effectively capping upside near the 26,200-26,250 resistance band. On the downside, the 25,800-25,700 zone has emerged as a crucial demand area and will be pivotal in maintaining short-term stability," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"Aggressive option writing near at-the-money strikes on both sides reflects heightened uncertainty and a lack of conviction regarding the next decisive move. A sustained breakout and close above 26,250 could trigger short covering, potentially propelling the index towards fresh all-time highs near the 26,400 zone. Conversely, any dips towards 25,700 are likely to attract buying interest, keeping the broader range-bound structure intact in the near term," he further added.

Bank Nifty Outlook Today

"Nifty Bank continues to trade without a clear directional bias through the December series, keeping the near-term structure delicate. The broader outlook remains cautious amid an extended consolidation phase, with sellers firmly guarding the 59,500-59,700 resistance band. On the downside, the 58,700-58,800 region has emerged as a crucial demand zone and will be vital for preserving short-term stability," Dhupesh Dhameja commented.

"The heavy concentration of call writing near at-the-money strikes, coupled with the gradual shifting of put positions to lower levels, reinforces the prevailing sideways bias. A decisive and sustained move above 59,500 could reignite bullish momentum and open the door toward the 60,100 zone. Conversely, a breach below 58,800 may weaken the structure, trigger fresh selling pressure, and drag the index toward the 58,500 level-thereby prolonging the ongoing consolidation phase," the analyst further recommended.

Stocks To Buy Today

On Wednesday, December 31, technical analyst Riyank Arora of Mehta Equities Ltd. recommended buying two stocks after the Nifty index created a classic doji on the daily chart, indicating uncertainty after the short-term pullback from higher levels.

NMDC

Buy CMP: Rs 83.41 | SL: Rs 80 | Target: Rs 88 / Rs 92

NMDC is holding well above its support zone near ₹80, indicating strong demand at lower levels. The stock is forming a base after consolidation and RSI is gradually turning upward. A breakout above ₹85 may trigger the next leg of the rally toward ₹88 and ₹92. Traders may hold long positions with a stop-loss at ₹80.

Hero MotoCorp

Buy | CMP: Rs 5,711 | SL: Rs 5,550 | Target: Rs 5,900 / Rs 6,050

Hero MotoCorp is maintaining a strong bullish structure after a healthy consolidation. The stock is trading above key averages with improving momentum. RSI remains positively placed, supporting further upside. A sustained move above ₹5,750 can lead to targets of ₹5,900 and ₹6,050. Keep SL at ₹5,550.

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