On the sectoral front, Energy, Infrastructure, and Finance were the top performers, reflecting confidence in domestic capital expenditure and credit growth. Meanwhile, broader market participation was strong, as indicated by a robust advance-decline ratio. However, underperformance in the Midcap and Smallcap indices suggests a degree of caution and selective rotation. Macroeconomic optimism, fueled by healthy quarterly results and sustained FII inflows, continues to underpin the market’s strength, though global cues remain a key monitorable.
Two stock recommendations by MarketSmith India for 21 November
Buy: Samvardhana Motherson International Ltd. (current price: ₹112)
- Why it’s recommended: Strong global client base across automotive OEMs, diversified product portfolio reducing dependency risk, consistent revenue and profit growth with improving margins, expanding footprint in EV and electronics segments, robust order book, and strategic acquisitions for growth
- Key metrics: P/E: 37.38, 52-week high: ₹116.38, volume: ₹130.37 crore
- Technical analysis: given trendline breakout on above average volume
- Risk factors:
- High exposure to cyclical automotive demand trends, currency and geopolitical risks from global operations, integration challenges due to frequent acquisitions, escalating raw material and logistics costs, and revenue concentration risk from key OEM customers
- Buy: ₹111–113
- Target price: ₹129 in two to three months
- Stop loss: ₹105
Buy:Central Depository Services (India) Limited (current price: ₹1,640)
- Why it’s recommended: Dominant market position, growing financialization of savings, IPO activity, and mutual fund penetration driving transaction volumes.
- Key metrics: 68.82: NA; 52-week high: ₹1,829; volume: ₹728.42crore
- Technical analysis: trendline breakout
- Risk factors: Earnings are highly sensitive to SEBI policies, transaction fee structures, and compliance norms.
- Buy at: ₹1,630–1,1650
- Target price: ₹1,840 in two to three months
- Stop loss: ₹1,580
How the Nifty 50 performed on 20 November
The Indian equity market ended higher on 20 November, with Nifty 50 climbing 0.54% to close at 26,192.15, driven by gains in Financials, Autos, and Oil & Gas stocks. The index opened flat but gathered momentum throughout the afternoon, supported by steady global cues and buying interest in heavyweight banking names.
Nifty Financial Services (+0.70%), Auto (+0.44%), and Oil & Gas (+0.55%) outperformed, while Consumer Durables (-0.53%) and Media (-1.54%) lagged. The broader market breadth, however, remained negative with 1,385 advances against 1,721 declines, reflecting selective participation despite index gains.
From a technical standpoint, Nifty 50 exhibited a constructive breakout above a medium-term consolidation pattern, supported by improving price action and volume confirmation. The index formed a strong bullish candle, closing near the day’s high, signaling continuation of upward momentum. The price action remains well-aligned above the short- and medium-term moving averages, indicating a strengthening trend structure.
The RSI has edged higher and is currently hovering around 68, maintaining its position in the bullish zone without entering overbought territory, suggesting that momentum remains healthy. Meanwhile, the MACD is trading in positive territory with a widening histogram, reinforcing the ongoing bullish bias.
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 index ended on a positive note, closing above 26,150 after testing its 21-DMA and 25,700, before rebounding sharply—indicating renewed buying interest at lower levels. A sustained move above 26,150 could open the door for a further rally toward 26,300–26,500 in the near term. On the downside, immediate support is placed at 25,800, while a stronger base around 25,700 continues to reinforce the broader uptrend and maintain overall market stability.
How did Nifty Bank perform?
Nifty Bank opened on a positive note but experienced intermittent profit booking, briefly pushing it into negative territory. However, renewed buying interest emerged after the intraday low, helping the index recover and close in positive territory. On the daily chart, the index formed a bullish candle, extending its gains and marking a fresh all-time high. During the trading session, Bank Nifty opened at 59,308.20, recorded a high of 59,440.10, and a low of 59,125.25, before finally settling at 59,347.70, reflecting continued market strength and strong investor sentiment.
The momentum indicator, RSI, has advanced to 74, indicating robust market momentum despite approaching the overbought zone. Simultaneously, the MACD has registered a positive crossover, and its position above the zero line reinforces the prevailing upward bias. According to the O’Neil methodology of market direction, Bank Nifty remains in a Confirmed Uptrend, supported by a strong technical setup and sustained buying on declines. Overall, the outlook remains bullish, with the potential for the index to achieve new record highs, provided the current momentum is maintained above existing levels.
Nifty Bank continues to exhibit strong bullish momentum with no apparent signs of weakness. However, some near-term profit booking at higher levels cannot be ruled out. The index remains comfortably above all major moving averages, indicating robust underlying strength and sustained positive sentiment. The overall outlook stays constructive as long as it holds above the 21-DMA (currently near 58,254). Continued buying interest could propel the index toward 59,500–60,000 in the upcoming sessions. On the downside, immediate support is placed around 58,000–57,500, with a decisive break below this range potentially triggering a short-term correction. Overall, the trend remains positive, favoring a buy-on-dips strategy amid ongoing 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.
Sebi Registration No.: INH000015543
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.
