Stock recommendations for 2 December from MarketSmith India

Indian Equities End Marginally Lower on Monday

The Nifty 50 slipped 0.10% to 26,175 on Monday, following a subdued global risk tone and selective profit-taking after last week's gains.

Market Breadth Negative, Sector Performance Mixed

The advance-decline ratio across the BSE 500 stood at roughly 0.68:1, indicating caution in the broader market, particularly in the mid- and large-cap segments.

• Auto and PSU Banks outperformed, while Realty and IT faced selling pressure.
• 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, with the advance-decline ratio standing at 1,384:1,728.

Two Stock Recommendations for Today

Buy: Bank of Baroda

Current price: ₹295.50

• 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 at: ₹293–297

Target price: ₹330 in two to three months

Stop loss: ₹280

Buy: Varroc Engineering Limited

Current price: ₹670

• Key metrics: 43.04; 52-week high: ₹717; volume: ₹94.20 crore.
• 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

Nifty Bank Demonstrates Continued Resilience

Nifty Bank ended 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.
• Nifty Bank closed at 59,752.70, registering a marginal gain of 15.40 points or +0.03%.

Key Outperformers in Nifty Bank

• Public Sector Banks (PSU Banks) led the rally, with key outperformers being Bank of Baroda (+2.28%), Kotak Mahindra Bank (+1.47%), and State Bank of India (SBI) (+0.57%).

Momentum Indicators Suggest Moderation

The Relative Strength Index (RSI) remains in bullish territory but has been flattening, suggesting a potential pause in strength.

• The Moving Average Convergence Divergence (MACD) continues to hold above its signal line, but the histogram has been narrowing, suggesting a slowdown in bullish momentum.

Buy-On-Dips Approach Remains Valid

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.

About MarketSmith India

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