Copyright © HT Digital Streams Limited All rights reserved. Stock Recommendations: MarketSmith India recommends two stocks for December 2. Summary MarketSmith India reveals its top recommendations for today, December 2. Get expert insights on the best performing stocks to guide your investment decisions. Indian equity benchmarks ended Monday’s volatile session marginally lower, giving up strong morning gains that propelled both Nifty 50 and Sensex to new all-time highs. Nifty 50 closed at 26,170.80, registering a modest decline of 32.15 points or -0.12%. Sensex settled at 85,533.70, down 172.97 points or -0.20%. The initial rally was driven by strong sentiment following better-than-expected 8.2% GDP growth in the second quarter before earnings talk at higher levels sent the indices lower. Market breadth was clearly negative, with the advance-decline ratio across the BSE 500 standing at around 0.68:1 (200 advances vs. 294 declines), indicating caution in the broader market, particularly in the mid- and large-cap segments. On the sectoral front, Auto and PSU banks fared better, while Realty and IT faced selling pressure. Overall sentiment remained cautious ahead of key global data releases later in the week, with investors opting to lock in gains amid a lack of fresh domestic triggers. Two stock recommendations for today by MarketSmith India Buy: Bank of Baroda (Current price: ₹295.50) Why it is recommended: Broad branch and customer network + scale, diversified product and service offerings Key metrics: P/E: 7.79, 52-week high: ₹300, volume: ₹2000 factor equal analysis: R2-405 factor. Economic slowdown/credit risk, margin pressure/net interest margin (NIM) volatility Buy: ₹293–297 Target price: ₹330 in two to three months Stop loss: ₹280 Buy: Varroc Engineering Limited (current price: ₹670) Why it is recommended: Position in the automotive customer sector, (strong focus on the auto parts sector) segment benchmarks: 43.04; 52-week high: ₹717; volume: ₹94.20 crore Technical analysis: Flat base breakout Risk factors: Dependence on a few big customers/OEMs, industry cyclicality and auto sector slowdown risk Buy at: ₹660–675 Target price: ₹760 in two to three months Stop loss: ₹6300 Indian end December 1 How the Indian end 6300 performs slightly lower on Monday, with Nifty 50 which fell 0.10% to 26,175, following a muted global risk tone and selective profit-taking after last week’s gains. The index traded in a narrow band but failed to maintain its early strength, weighed down by weakness in defensive and rate-sensitive sectors. Sector performance was mixed. Nifty Auto, IT and Metal fared better with modest gains, while Healthcare, Consumer Durables, Realty and Pharma saw the sharpest declines. Broader market breadth remained soft. The advance-decline ratio stood at 1,384:1,728, indicating selling pressure across mid-cap and small-cap segments. PSU Banks held firm, supported by steady credit growth expectations, while Financial Services and FMCG declined slightly. Nifty 50 extended its consolidation phase today, with price action showing modest positive close but limited directional conviction. The index continues to trade above its short-term moving averages, reflecting a continued upward bias, while the broader structure suggests a steady series of higher lows over the past few weeks. Recent candles indicate mild indecision near the top of the current range, indicating a cooling of momentum after the sharp November climb. Momentum indicators point to moderation. Currently hovering in the low 60s, the RSI remains in bullish territory but has flattened, suggesting a possible pause in strength as traders await clearer clues. Meanwhile, the MACD is still holding above its signal line, but the histogram has narrowed, suggesting a slowdown in bullish momentum, but not yet a reversal. According to O’Neil’s market direction methodology, 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 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, although the histogram is showing signs of narrowing, indicating a possible slowdown in upward momentum. The index ended the session largely unchanged, having briefly touched an intraday high of 26,326 before closing below 26,200. A decisive close above 26,300 would be a constructive development and could open the door for a fresh upswing to 26,500–26,700 in the near term. On the downside, immediate support is seen at 25,850, while a stronger demand base around 25,700 remains critical to maintain a broader uptrend and maintain overall market stability. How did Nifty Bank perform? Nifty Bank showed continued resilience and managed to end the session on positive territory despite broader market consolidation and profit booking at higher levels. The index marked a historic milestone by opening above the psychological 60,000 mark for the first time and hitting an all-time high of 60,114.05 in morning trade. Finally, Bank Nifty closed at 59,752.70, registering a marginal gain of 15.40 points or +0.03%. The day’s strength was supported by continued institutional interest in the financial sector, fueled by strong domestic growth prospects and ongoing expectations of a potential RBI rate cut cycle following the better-than-expected Q2 GDP data. The rally was notably led by Public Sector Banks (PSU Banks), with key performers being Bank of Baroda (+2.28%), Kotak Mahindra Bank (+1.47%) and State Bank of India (SBI) (+0.57%). Selling pressure was observed in some private banking heavyweights, preventing a more decisive breakout. The index extended its steady uptrend today, with price action building on its recent series of higher highs and higher lows. It closed near 59,681, maintaining momentum above its short- and medium-term moving averages, reflecting sustained buying interest on minor declines. From a momentum point of view, the RSI remains firmly in the bullish zone, hovering near the 70 mark. While elevated, it did not show any sharp reversal signal, indicating that the continued strength is still supported by improving trend conviction rather than overextension. The MACD is still trading above its signal line, and the histogram remains positive, reinforcing the continuation of upward momentum. Nifty Bank moved into uncharted territory, boosting the overall market sentiment. Continued buying interest suggests that the index may rise to 60,000–60,500 in the near term. Immediate support is placed at 58,500-58,400, and any minor decline towards this band is likely to attract renewed accumulation from market participants. Momentum remains strong, and the broader trend remains constructive. Hence, the buy-on-dip approach remains 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 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