Stock recommendations for 28 November from MarketSmith India

Two stock recommendations by MarketSmith India: Buy: Eureka Forbes Ltd. (current price: ₹547) Why it’s recommended: Strong brand recognition, leadership in water/air purification, wide distribution network, recurring service/AMC revenue, growing demand for home wellness products, potential market expansion, and new product launches Key metrics: P/E: 68.11 | 52-week high: ₹655.50 | Volume: ₹36.63 crore Technical analysis: Trendline breakout on the daily chart Risk factors: High competition from global/local players, dependence on AMC/service quality, margin pressure from rising input costs, slowdown in consumer discretionary spending, technology disruption risk, execution challenges post business restructuring Buy: ₹607-620 Target price: ₹695 in two to three months Stop loss: ₹570 Buy: Ather Energy Ltd (current price: ₹710) Why it’s recommended: Strong brand positioning in India’s EV two-wheeler, expanding distribution and service network across multiple cities Key metrics: N/A | 52-week high: ₹790 | Volume: ₹227.21 crore Technical analysis: Trendline breakout Risk factors: High capital intensity and cash burn, dependence on raw materials Buy at: ₹705-715 Target price: ₹815 in two to three months Stop loss: ₹ 665 How the Nifty 50 perform yesterday Indian equities ended the session on a subdued but steady note, with the Nifty 50 closing marginally higher at 26,215.55, up 0.04% (≈10 points), after fluctuating in a narrow band through the day. Markets showed a lack of clear directional cues as investors balanced profit-taking with selective buying in Financials and IT. On the sectoral front, the Nifty Financial Services (+0.46%) and Private Banks (+0.34%) provided key support, while IT (+0.22%) and FMCG (+0.05%) contributed modest gains. On the downside, pressure persisted in Consumer Durables (-0.65%), Oil & Gas (-0.73%), Realty (-0.72%), and PSU Banks (-0.58%), signalling broad-based caution. The overall market breadth remained slightly negative, with 1,488 stocks advancing versus 1,602 declining, reflecting underlying softness beyond the headline indices. Today, the Nifty 50 extended its consolidation phase, 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. Meanwhile, 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 signalling 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 wait for 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. 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 touched a new all-time high before closing the session flat, holding firmly above 26,200. A sustained close above 26,250 could pave the way for a fresh rally toward 26,300-26,500 in the near term. On the downside, immediate support is placed at 25,850, while a stronger base near 25,700 remains essential for preserving the broader uptrend and overall market stability. How did the Nifty Bank perform yesterday? The Nifty Bank opened on a positive note and stayed in the green for most of the session. It formed a second consecutive bullish candle on the daily chart and continued its strong momentum by registering a fresh all-time high. The index opened at 59,605.30, climbed to an intraday high of 59,866.60, and slipped to a low of 59,523 before finally closing at 59,737.30. With this move, the index entered uncharted territory, reinforcing the prevailing bullish trend and signalling sustained strength in the broader market structure. The RSI continues to be firm and now stands at 72, indicating strong momentum. The MACD has generated a positive crossover and remains above the signal line, further reinforcing bullish sentiment. In alignment with O’Neil methodology, Bank Nifty maintains a Confirmed Uptrend, supported by a solid technical structure and consistent buying on dips. Overall, the technical setup remains highly constructive, with scope for additional upside as long as the index sustains above key support levels. The 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 58,400-58,000, 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. Trade name: William O’Neil India Pvt. Ltd. Sebi Registration No.: INH000015543