Copyright © HT Digital Streams Limited All rights reserved. Stock Recommendations: MarketSmith India recommends two stocks for December 18. Summary MarketSmith India reveals its top recommendations for today, December 18. Get expert insights on the best performing stocks to guide your investment decisions. Stock market roundup: Indian stock market benchmarks – the Sensex and the Nifty 50 – ended in losses for the third straight session on Wednesday, December 17, on continued concerns over the rupee’s weakness, foreign capital outflows and a delay in the India-US trade deal. The Sensex ended with a loss of 120 points, or 0.14%, at 84,559.65, while the Nifty 50 ended at 25,818.55, down 42 points, or 0.16%. The decline was steeper for the mid- and small-cap segments. The BSE Midcap index ended 0.53% lower, while the Smallcap index fell 0.85%. The overall sell-off dragged the overall market capitalization of BSE-listed firms to ₹466 trillion, causing investors to lose ₹1.6 lakh crore in a single session. Two stock recommendations by MarketSmith India for December 18: Buy: State Bank of India (current price: ₹976) Why it is recommended: Strong credit growth momentum, led by expansion of retail, SME and corporate loans, improved asset quality, with declining GNPA/NNPA ratios Key metrics: P/E: 11₹9, ₹₹ high: 52₹ crore Technical analysis: Regains its 21-DMA and also has given a trendline breakout. Risk factors: Exposure to large corporate lenders, creates potential stress, regulatory and macroeconomic sensitivity Buy at: ₹970–980 Target price: ₹1,050 in two to three months Stop loss: Tubes Ltd. ₹1,764) Why it is recommended: Market leadership in structural steel tubes, capacity expansion and technological upgrades Key Stats: P/E: 60; 52-week high: ₹1,936; volume: ₹ 132 crore Technical analysis: downward sloping trendline breakout Risk factors: High sensitivity to steel price volatility, dependence on cyclical sectors like construction and infrastructure Buy at: ₹ 1,750–1,770 Target price: ₹ 1,900 in two to three months Stop loss: ₹ 9ft: 5 Index that performed on Dec 17 Indian stocks were lower on Dec 17 ended, with the Nifty 50 down 0.16% to 25,818.55, weighed down by weakness across financials, FMCG and consumer durables. The index oscillated within a narrow range of 25,770-25,929, reflecting cautious sentiment ahead of global central bank commentary and lingering geopolitical uncertainties. Market breadth remained particularly weak, as the advance-decline ratio weakened to 1,055 advances versus 2,084 declines, indicating broad-based pressure across the broader market. On the sectoral front, IT (+0.29%), Metals (+0.25%), PSU Banks (+1.29%) and Oil and Gas (+0.23%) provided pockets of support. On the other hand, Financial Services, Auto, FMCG and Consumer Durables dragged down the benchmarks. Private Banks also underperformed, reflecting risk-off positioning. Nifty continued to trade within a narrower range, hovering between its 21- and 50-DMA, reflecting an indecisive yet controlled pullback within the broader bullish structure. Price action indicates that the index is consolidating below the upper boundary of its ascending channel. The RSI remains subdued and continues to drift lower within a descending trajectory, indicating continued bearish momentum divergence relative to recent price swings. This indicates waning upside, even as the index attempts to stabilize above intermediate moving averages. Meanwhile, the MACD has slipped into a negative crossover, with the histogram extending further into negative territory, reinforcing the current momentum cooling phase. According to O’Neil’s methodology of market direction, the market status shifted to a “Confirmed Uptrend” as it decisively surpassed its previous rally high of 25,670 to register a new 52-week. The index, after failing to move above its 21-DMA and facing renewed selling pressure, is now trading marginally above the 50-DMA. On the downside, 25,700 serves as the initial support, while 25,300 remains a critical demand area for sustaining the broader uptrend and preserving overall market stability. Conversely, a decisive close above 26,300 would substantially strengthen the technical setup and pave the way for a continuation of the move towards 26,500–26,700 in the near term. How has the Nifty Bank performed? Nifty Bank ended the session on a subdued note, falling 0.18% to 58,926.75, weighed down by weakness in selected large-cap lenders despite intraday efforts to stabilize near the 58,800 support zone. The index traded within a narrow band of 58,801-59,127, reflecting cautious sentiment ahead of key global macro cues. Market breadth was marginally positive with 8 advances and 4 declines, mainly supported by PSU Banks. State Bank of India (+1.58%), Bank of Baroda (+1.47%), Canara Bank (+2.06%) and Punjab National Bank (+1.73%) outperformed, extending their recent momentum as investors continued to turn to value-driven public sector names. Among private lenders, AU Bank (+1.01%) and Axis Bank (+0.52%) posted modest gains. However, heavyweights like ICICI Bank (-0.92%), HDFC Bank (-0.92%) and IndusInd Bank (-1.13%) dragged the index, keeping the overall sentiment subdued. Nifty Bank continues to show a mild consolidation phase, with today’s candle reflecting indecision that saw the prices of the short-term rate close to the October short-term rate. Despite intraday volatility, the index held above this trendline, indicating that buyers are still defending the structure even as momentum cools. RSI has slipped below its midline and is now following a short-term downtrend, reflecting weakening momentum and a shift to a more neutral-to-soft sentiment in the near term. MACD is also showing a bearish crossover with widening histogram bars, reinforcing signs of momentum loss after weeks of steady gains. The index continued to fall below 59,000. However, the pullback appears orderly and remains consistent with the prevailing uptrend. While some profit taking may persist in the short term, any move towards the 50-DMA around 58,300 is likely to attract new buying interest. A quick close above the 21-DMA will help reassert bullish momentum and confirm the broader positive structure. On the downside, 58,800–58,000 provides a meaningful cushion, supported by steady participation across key banking components. Improving sectoral breadth further strengthens the underlying tone, and a sustained move above key resistance markers could draw incremental institutional flows, potentially accelerating the index’s upward trajectory. MarketSmith India is an equity research platform and advisory service focused on the Indian stock market. It provides 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. Brand 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. It does not represent the views of Munt. We advise investors to check with certified experts before making any investment decisions. Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News app to get daily market updates. more topics #markets premium # stocks to buy # stock recommendations # stock recommendation # Stock Markets Read next story