The Nifty 50 rallied more than 140 points, or 0.55%, settling near 25,900, while Sensex advanced 427 points, or 0.51%, to close at 84,818.13.
The recovery was broad-based, with Nifty Midcap 100 and Smallcap 100 also gaining nearly 1% and 0.8% respectively, pointing to renewed risk appetite. On the sectoral front, Auto and Metal stocks were the top performers, rising more than 1% each.
The session exhibited a favorable advance-decline ratio, with significantly more stocks moving upward than downward, reflecting strong market breadth.
Two stock recommendations by MarketSmith India for 12 December
Buy: Sai Life Sciences Limited (current price: ₹903)
- Why it’s recommended: Strong presence in CRDMO/CDMO segment, diversified global pharma client base, expansion of manufacturing and R&D capabilities, consistent revenue growth visibility in outsourcing services, regulatory approvals across key markets (US/EU), and focus on high-value chemistry and niche capabilities
- Key metrics: P/E: 91.91, 52-week high: ₹943, volume: ₹33.46 crore
- Technical analysis: Reclaimed its 21-DMA on above average volume
- Risk factors: Dependence on global pharma spending cycles, margin pressure due to competitive CDMO landscape, regulatory compliance risks across multiple geographies, client concentration risk in key contracts, currency fluctuation impact on export revenue, and high capital expenditure requirements for expansion
- Buy: ₹890–910
- Target price: ₹1050 in two to three months
- Stop loss: ₹845
Buy: TVS Motor Company Limited (current price: ₹3,637)
- Why it’s recommended: Strong product portfolio across scooters, motorcycles, and premium bikes, rapid growth in electric two-wheelers (iQube)
- Key metrics: P/E: 330.27; 52-week high: ₹3,720; volume: ₹ 161.67 crore
- Technical analysis: Downward sloping trendline breakout
- Risk factors: High dependence on the cyclical two-wheeler industry, Intensifying competition in the EV segment
- Buy at: ₹3,600–3,640
- Target price: ₹4,000 in two to three months
- Stop loss: ₹ 3,640
How the Nifty 50 performed on 11 December
Indian equities closed higher on December 11, with Nifty 50 advancing 0.55% to end at 25,898.55, supported by broad-based buying and firm global cues. The index sustained gains through the session after an initial dip, with intraday support emerging near 25,700 and resistance visible around 25,920.
On the sectoral front, Nifty IT, Auto, Pharma, Consumer Durables, and Financials led the uptrend, with IT and Auto particularly strong amid improved risk sentiment. FMCG and Healthcare also posted steady gains, while Media and Oil & Gas were mild laggards.
Market breadth was constructive, reflecting a healthy undertone: of the traded stocks, 1,921 advanced, 1,187 declined, and 99 remained unchanged, indicating a robust advance–decline ratio of ~3:2. Banking indices, including Private Bank and PSU Bank, contributed meaningfully, reinforcing support at lower levels.
Nifty 50 a constructive rebound in today’s session, with price action showing a decisive recovery from the 50-DMA (red line), which acted as an intraday dynamic support. After slipping below the short-term trendline in the previous sessions, the index reclaimed upward momentum, forming a higher intraday low, indicating buyers are defending the medium-term structure.
Momentum indicators offered confirming signals. The RSI (14), which had been sliding toward the lower neutral band, turned higher from 48–50, suggesting loss of selling pressure and early signs of momentum stabilization. Meanwhile, the MACD continues to trade below its signal line but shows signs of flattening, hinting that bearish momentum may be tapering off.
According to O’Neil’s methodology of market direction, the market status has shifted to a “Confirmed Uptrend” as it decisively surpassed its previous rally high of 25,670 to register a new 52-week.
The index extended its decline for the third consecutive session, signaling continued near-term weakness. On the downside, initial support is placed at 25,700, while the 25,300 zone remains a key area for sustaining the broader uptrend and preserving overall market stability. On the upside, a decisive close above 26,300 would improve the technical structure and open the way for a continuation of the rally toward 26,500–26,700 in the near term.
How did Nifty Bank perform?
Nifty Bank concluded the session on a resilient note, aided by broader market optimism driven by the U.S. Fed rate cuts. Technically, the index has reclaimed its 21-DMA, indicating renewed short-term strength following a brief consolidation phase and snapped a three-day losing streak.
According to the daily chart, Nifty Bank opened at 58,966.20, registered a high of 59,423.35, touched a low of 58,799.90, and closed firmly at 59,209.85. The price structure highlights consistent buying interest around key support levels. Overall, the technical setup maintains a positive undertone, with further upside likely should momentum persist above the short-term moving averages.
The RSI has moved slightly higher and is currently positioned at 56. The MACD has generated a bearish crossover but remains above the zero line, indicating underlying strength despite near-term caution.
According to O’Neil’s methodology of market direction, Bank Nifty remains in a Confirmed Uptrend, reinforcing a constructive broader tone. These signals collectively suggest a favorable setup in which select banking names may be positioned for potential breakouts. However, ongoing monitoring is essential to evaluate follow-through strength and short-term stability.
The index concluded the session on a positive note, sustaining trade above its 21-DMA and reinforcing short-term bullish sentiment. If the current buying momentum persists, the index may advance toward 59,700–60,000 in the coming sessions. Conversely, immediate support is positioned around 58,800–58,000.
Additionally, the improving breadth within banking constituents further strengthens the near-term outlook. A sustained close above resistance levels could attract incremental institutional buying, potentially extending the ongoing upward trajectory.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
