The Bank Nifty also remained subdued, easing 15.05 points (0.03%) to settle at 58,820.30, reflecting continued weakness in financial stocks.
Top three stock picks by Ankush Bajaj for 26 November
Buy: Aditya Birla Capital Ltd — Current Price: ₹345.45
- Why it’s recommended: Aditya Birla Capital is showing a bullish recovery after a brief consolidation phase. The stock is trading firmly above short-term moving averages, with rising volumes and improving price action. The daily RSI is trending near 60, indicating steady momentum, while the MACD has turned positive, supporting a continued up-move toward ₹358. The financial services space is witnessing rotation, and the stock’s technical setup favors near-term outperformance.
- Key metrics: RSI (14-day): ~60 — rising momentum
- MACD (12,26): Positive crossover — trend reversal signal
- Support (stop loss): ₹339
- Technical view: Sustaining above ₹339 will keep the bullish bias intact, with short-term upside potential toward ₹358. The breakout above ₹343 has seen strong follow-through, increasing conviction in this move.
- Risk factors: Being part of the financial sector, the stock is sensitive to interest rate expectations, liquidity outlook, and fund flow dynamics.
- Buy at: ₹345.45
- Stop loss: ₹339.00
- Target price: ₹358.00
Buy: Eicher Motors Ltd — Current Price: ₹7218.50
- Why it’s recommended: Eicher Motors has resumed its uptrend following a clean bounce from the ₹7120 support zone. The stock has formed a higher base on the daily chart, while momentum indicators like RSI (near 63) and MACD (positive crossover) suggest further upside potential. The auto sector remains resilient, and Eicher is well-positioned to gain from ongoing two-wheeler demand and strong operating metrics.
- Key metrics: RSI (14-day): ~63 — bullish momentum intact
- MACD (12,26): Positive and rising
- Support (stop loss): ₹7120
- Technical view: Sustaining above ₹7120 will confirm the strength of the base, with the stock likely to approach ₹7415 in the short term. Price action has been clean, and strength in auto names adds to the tailwind.
- Risk factors: Exposed to rural demand sentiment, regulatory changes in emission norms, and input cost pressures.
- Buy at: ₹7218.50
- Stop loss: ₹7120.00
- Target price: ₹7415.00
Buy: Hero MotoCorp Ltd — Current Price: ₹6081.50
- Why it’s recommended: Hero MotoCorp is showing signs of consolidation breakout with a tight risk-reward setup. The stock has taken support near ₹6048 multiple times and is now showing signs of strength with RSI near 58 and MACD holding above the zero line. A move toward ₹6150 looks likely as the stock attempts to reclaim higher levels in a stabilizing auto market.
- Key metrics: RSI (14-day): ~58 — improving momentum
- MACD (12,26): Positive but flat — early signs of uptick
- Support (stop loss): ₹6048
- Technical view: Holding above ₹6048 keeps the short-term bullish breakout setup valid. The stock could gain traction toward ₹6150, provided it sustains above ₹6060 during intraday dips.
- Risk factors: Linked to festival season sales, demand in the entry-level two-wheeler segment, and pricing strategy.
- Buy at: ₹6081.50
- Stop loss: ₹6048.00
- Target price: ₹6150.00
Market Wrap
On Tuesday, the market witnessed a mild corrective phase as the Nifty 50 slipped 74.70 points or 0.29% to close at 25,884.80, while the Sensex fell 313.70 points or 0.37% to end at 84,587.01. The Bank Nifty also remained subdued, easing 15.05 points (0.03%) to settle at 58,820.30, reflecting continued weakness in financial stocks.
Sectoral performance was mixed during the session. The Realty Index ended firmly higher, gaining 1.62%, followed by the PSU Bank index, which advanced 1.44%, and the Metal index, which added 0.55%. On the downside, the Services Sector index emerged as the biggest drag, declining 0.36%, while the PSE index slipped 0.34%. Toward the close, the FMCG index also eased 0.32%, adding to the list of underperformers.
Stock-specific action offered brief support, with Hindalco rising 1.90%, Bharat Electronics Limited up 1.60%, and SBIN gaining 1.34%. However, profit booking dominated sentiment as Adani Enterprises fell 1.34%, TMPV dropped 1.63%, and Trent slid 1.55%, limiting any meaningful recovery during the session.
Nifty Technical Outlook
The Nifty 50 declined for the second straight session, falling 74.70 points or 0.29% to close at 25,884.80. After a failed attempt to sustain above 26,000 in earlier sessions, the index is now displaying signs of short-term fatigue, drifting lower amid lackluster participation and weakening momentum.
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From a technical standpoint, the index is still trading above its key medium-term moving averages. The 20-day simple moving average is placed at 25,848, and the 40-day exponential moving average is at 25,641. Despite closing above these levels, momentum indicators are beginning to flash early warning signs. The daily RSI has cooled to 54, suggesting fading bullish strength, while the MACD, although still positive at 145, is losing traction — signaling a slowdown in upward momentum.
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On the hourly chart, the weakness is more evident. Nifty is now trading below both the 20-hour and 40-hour moving averages, which are placed at 26,033 and 26,006 respectively. The hourly RSI has dipped sharply to 36, nearing oversold territory, while the MACD has turned negative at –35. This breakdown on intraday indicators suggests growing intraday pressure and a possible extension of the pullback unless the index regains 26,000 swiftly.
Looking at the derivatives data, the overall positioning still leans cautious. The total call open interest stands at 18.60 crore against 13.95 crore in Puts, resulting in a PE–CE differential of –4.65 crore, confirming a bearish OI trend. However, the change in open interest tells a slightly different story — call OI dropped by 3.18 crore while Put OI declined marginally by 20.49 lakh, resulting in a net positive shift of 2.97 crore in favor of Puts. This suggests short covering in calls and fresh put writing, reflecting a mildly bullish shift in the intraday OI trend.
The 25,900 strike now holds the highest Call OI as well as the most active additions, establishing it as immediate resistance. On the flip side, the 25,850 strike has emerged as the key support level, with the highest Put open interest and fresh additions, making it a critical pivot for the next session.
The put-call ratio (PCR) stands at 0.75, reinforcing the presence of more call writers than put writers — a typically bearish signal unless reversed.
Summary & Outlook: Nifty’s medium-term trend remains positive as long as it holds above 25,640–25,700, but short-term indicators are signalling a pause or mild corrective phase. Immediate resistance is now seen near 25,900–25,950, while support lies at 25,850, followed by a stronger cushion around 25,700.
A sustained close above 25,950 is needed to revive bullish momentum, while a breach below 25,850 could trigger further downside toward 25,700–25,640.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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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.
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