Market breadth was clearly negative, with the advance-decline ratio across the BSE 500 standing at roughly 0.68:1 (200 advances vs. 294 declines), indicating caution in the broader market, particularly in the mid- and large-cap segments.
On the sectoral front, Auto and PSU Banks outperformed, while Realty and IT faced selling pressure. Overall sentiment remained cautious ahead of key global data releases later in the week, with investors preferring to lock in gains amid a lack of fresh domestic triggers.
Two stock recommendations for today by MarketSmith India
Buy: Bank of Baroda(current price: ₹295.50)
- Why it’s recommended: Broad branch and customer network + scale, diversified product & service offerings
- Key metrics: P/E: 7.79, 52-week high: ₹300, volume: ₹405.28 crore
- Technical analysis: flat base breakout
- Risk factors: Economic slowdown/credit risk, margin pressure/net interest margin (NIM) volatility
- Buy: ₹293–297
- Target price: ₹330 in two to three months
- Stop loss: ₹280
Buy: Varroc Engineering Limited (current price: ₹670)
- Why it’s recommended: Position in the auto components sector, diversified OEM customer base, strong focus on the EV (electric vehicle) segment
- Key metrics: 43.04; 52-week high: ₹717; volume: ₹94.20crore
- Technical analysis: Flat base breakout
- Risk factors: Dependence on a few major clients/OEMs, industry cyclicality & auto-sector slowdown risk
- Buy at: ₹660–675
- Target price: ₹760 in two to three months
- Stop loss: ₹ 630
How the Nifty 50 performed on 1 December
Indian equities ended marginally lower on Monday, with Nifty 50 slipping 0.10% to 26,175, tracking a subdued global risk tone and selective profit-taking after last week’s gains. The index traded in a narrow band but failed to hold its early strength, weighed down by weakness in defensives and rate-sensitive sectors.
Sector performance was mixed. Nifty Auto, IT, and Metal outperformed with modest gains, while Healthcare, Consumer Durables, Realty, and Pharma saw the sharpest declines. Broader market breadth remained soft. The advance-decline ratio stood at 1,384:1,728, indicating selling pressure across mid- and small-cap segments. PSU Banks held firm, supported by steady credit growth expectations, while Financial Services and FMCG slipped mildly.
Nifty 50 extended its consolidation phase today, with price action showing a modest positive close but limited directional conviction. The index continues to trade above its short-term moving averages, reflecting an ongoing upward bias, while the broader structure suggests a steady sequence of higher lows over the past several weeks. Recent candles indicate mild indecision near the upper end of the current range, hinting at a cooling of momentum after the sharp November climb.
Momentum indicators are signaling moderation. The RSI, currently hovering in the low 60s, remains in bullish territory but has been flattening, suggesting a potential pause in strength as traders await clearer cues. Meanwhile, the MACD continues to hold above its signal line, but the histogram has been narrowing, suggesting a slowdown in bullish momentum, though not yet a reversal.
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 high.
The RSI has eased slightly to around 62, indicating cooling momentum but still holding in bullish territory, reflecting a healthy pullback within an uptrend. Meanwhile, the MACD remains in positive alignment, though the histogram shows signs of narrowing, hinting at a potential slowdown in upward momentum.
The index ended the session largely unchanged, after briefly touching an intraday high of 26,326 before closing below 26,200 . A decisive close above 26,300 would be a constructive development and may open the door for a fresh upswing toward 26,500–26,700 in the near term.
On the downside, immediate support is seen at 25,850, while a stronger demand base around 25,700 remains critical for sustaining a broader uptrend and maintaining overall market stability.
How did Nifty Bank perform?
Nifty Bank demonstrated continued resilience, managing to end the session in positive territory despite broader market consolidation and profit booking at higher levels.
The index marked a historical milestone by opening above the psychological 60,000 mark for the first time and hitting an all-time high of 60,114.05 in morning trade. Ultimately, Bank Nifty closed at 59,752.70, registering a marginal gain of 15.40 points or +0.03%.
The day’s strength was underpinned by sustained institutional interest in the financial sector, fueled by strong domestic growth prospects and ongoing expectations of a potential RBI rate-cut cycle following the better-than-expected Q2 GDP data.
The rally was notably led by Public Sector Banks (PSU Banks), with key outperformers being Bank of Baroda (+2.28%), Kotak Mahindra Bank (+1.47%), and State Bank of India (SBI) (+0.57%). Selling pressure was observed in a few private banking heavyweights, preventing a more decisive breakout
The index extended its steady upward structure today, with price action continuing to build on its recent series of higher highs and higher lows. It closed near 59,681, maintaining momentum above its short- and medium-term moving averages, reflecting sustained buying interest on minor dips.
From a momentum standpoint, the RSI remains firmly in the bullish zone, hovering near the 70 mark. While elevated, it has not shown any sharp reversal signal, indicating that the ongoing strength is still being supported by improving trend conviction rather than overextension. The MACD continues to trade above its signal line, and the histogram stays positive, reinforcing the continuation of upward momentum.
Nifty Bank has moved into uncharted territory, strengthening overall market sentiment. Persistent buying interest suggests the index could advance toward 60,000–60,500 in the near term. Immediate support is placed at 58,500–58,400, and any minor decline toward this band is likely to attract renewed accumulation from market participants.
Momentum remains strong, and the broader trend continues to be constructive. Consequently, the buy-on-dips approach stays valid as long as the index holds above key support levels. With bullish undertones intact, the index is well-positioned for further upside unless a decisive break below support emerges.
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.
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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.
