The session was supported by positive domestic sentiment, driven by stronger-than-expected Q2 corporate earnings and prospects of an India-US trade deal, effectively outweighing mixed global cues. On the sectoral front, Banking and Consumer Durables were the key drivers, with the PSU Bank index being a top gainer.
The broader market also saw significant participation, with the advance-decline ratio remaining positive throughout the day, suggesting robust internal strength beyond the large-cap indices.
Two stock recommendations by MarketSmith India for 18 November
Buy: Kotak Mahindra Bank Ltd.(current price: ₹2,100)
- Why it’s recommended: Strong and diversified retail and corporate banking franchise, robust capital adequacy and healthy balance sheet, consistent profitability and stable asset quality, effective risk management and conservative lending approach, expanding digital and fintech initiatives, experienced management team, and strong governance framework
- Key metrics: P/E: 2.80, 52-week high: ₹2,301.90, volume: ₹1,058.26 crore
- Technical analysis: Bounced from its 200-DMA on above average volume
- Risk factors: Rising competition in retail and digital banking segments, margin pressure from interest rate fluctuations, potential asset quality stress in economic slowdown, regulatory changes impacting profitability, dependence on key management personnel, and slower loan growth compared to peers
- Buy: ₹2,090–2,120
- Target price: ₹2,350 in two to three months
- Stop loss: ₹1,990
Buy: Garuda Construction and Engineering Limited (current price: ₹238)
- Why it’s recommended: Strong position in India’s infrastructure and real estate development segment, high operating margins (30–35%), and low debt ensure financial stability.
- Key metrics: P/E: 30.86; 52-week high: ₹249.30; volume: ₹97.52crore
- Technical analysis: trendline breakout
- Risk factors: Revenue concentration from promoter-linked entities, working capital intensity may pressure liquidity in large projects.
- Buy at: ₹236–240
- Target price: ₹280 in two to three months
- Stop loss: ₹219
How the Nifty 50 performed on 17 November
Indian equities extended their gains on Monday, with the Nifty 50 rising 103 points or 0.40% to close at 26,013.45 amid broad-based buying across key sectors. The Sensex advanced in tandem, supported by strength in Auto, Consumer Durables and Banking stocks.
The broader market reflected a mildly positive breadth as 1,651 stocks advanced while 1,523 declined and 79 remained unchanged, indicating a balanced but slightly bullish undertone.
Nifty Auto (+0.85%), Consumer Durables (+0.83%), and Private Bank (+0.79%) led the gains, while Metal and Media indices were largely flat. PSU Banks also outperformed with a more than 1% uptick, owing to continued optimism over credit growth and improving asset quality.
On the daily chart, price action shows a decisive breakout above a short-term consolidation zone, supported by sustained buying interest and rising volumes. The index is now trading comfortably above all its key moving averages.
The RSI, currently near 65, is trending higher after rebounding from the midline, suggesting strengthening momentum without entering overbought territory. This upturn in RSI aligns with improving market breadth and a pickup in cyclical sector participation.
Meanwhile, the MACD has generated a bullish crossover above the signal line, confirming a shift in momentum toward buyers. The histogram has also turned positive, reflecting increasing upside traction.
According to O’Neil’s methodology of market direction, the market status has been shifted to a “Confirmed Uptrend” as it decisively surpassed its previous rally high of 25,670 to register a new 52-week high.
The index ended on a positive note, closing above the 26,000 psychological mark after testing its 21-DMA and 25,700, before rebounding sharply—signaling renewed buying interest at lower levels. A sustained move above 26,100 could pave the way for an advance toward 26,200–26,300 in the near term. On the downside, immediate support is seen at 25,700, while a stronger base around 25,300 continues to underpin the broader uptrend and maintain overall market stability.
How did Nifty Bank perform?
Nifty Bank opened with a gap-up and maintained a positive trajectory throughout the session. It formed its seventh consecutive bullish candle on the daily chart, reflecting sustained upward momentum. The index continues to trade well above all its key moving averages, indicating a robust trend with no visible signs of weakness. It opened at 58,696.30, touched an intraday high of 59,001.55, and closed at 58,962.70, reflecting persistent strength in the banking sector. Overall sentiment remains optimistic, supported by consistent buying interest.
The RSI has inched higher to around 71, highlighting steady and resilient bullish sentiment. While nearing overbought territory, it continues to signal underlying market strength. Meanwhile, the MACD has shown a minor negative crossover. However, it is on the verge of turning positive again as its position above the zero line reaffirms sustained upward momentum.
According to the O’Neil methodology, Nifty Bank remains in a Confirmed Uptrend, supported by a strengthening technical setup and consistent buying on dips. Overall, the outlook remains bullish, with the potential for new highs if momentum holds above current levels.
The index continues to trade well above all its key moving averages, reflecting strong underlying momentum and bullish market sentiment. Having entered uncharted territory, the outlook remains constructive as long as it sustains above the 21-DMA, currently positioned near 58,050.
A decisive breakout above this level could fuel an extended rally toward 59,000–59,500, with a potential move to 60,000 in the near term. On the downside, immediate support lies around 57,600–57,000, and a breach below this range may trigger a short-term corrective phase. Overall, the trend remains positive, favouring a buy-on-dips approach amid persistent market strength.
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.
