Stock recommendations for 10 December from MarketSmith India

The Sensex closed 436 points, or 0.51%, lower at 84,666.28, while the Nifty 50 ended the day with a loss of 121 points, or 0.47%, at 25,839.65. The mid- and small-cap segments, however, erased losses and ended higher, outperforming the benchmarks. The BSE Midcap index ended 0.60% higher, while the Smallcap index jumped 1.27%.

Thanks to gains in the mid- and small-cap segments, the overall market capitalization of BSE-listed firms rose to ₹465 trillion from ₹464.2 trillion in the previous session.

Two stock recommendations by MarketSmith India for 10 December:

Buy: Aether Industries Ltd (current price: ₹849)

• Why it’s recommended: Strong presence in specialty chemicals with differentiated product portfolio, long-term contracts and sticky customer relationships with global clients, expansion capacity and capex pipeline supporting future volume growth, high entry barriers due to complex chemistries and process expertise
• Key metrics: P/E: 61.65, 52-week high: ₹938.50, volume: ₹43.62 crore
• Technical analysis: Bounce back from its 50-DMA on above average volume
• Risk factors: Revenue concentration with limited large customers, margin pressure from raw-material price volatility, prolonged capex cycles that may impact return ratios, regulatory and environmental compliance risks, and competitive pressure from global specialty chemical players
• Buy at: ₹845–860
• Target price: ₹960 in two to three months
• Stop loss: ₹795

Buy: Anupam Rasayan India Ltd (current price: ₹1,294)

• Why it’s recommended: Strong long-term contracts with global agrochemical and specialty chemical leaders and expanding high-value CRAMS/Custom Synthesis portfolio
• Key metrics: 72; 52-week high: ₹1,310; volume: ₹71.20 crore
• Technical analysis: 21-EMA Bounce
• Risk factors: High client concentration risk, dependence on global agrochemical demand cycles
• Buy at: ₹1,275–1,300
• Target price: ₹1,420 in two to three months
• Stop loss: ₹ 1,220

Nifty 50: How the index performed on 9 December

Indian equities ended lower on 9 December, with Nifty 50 slipping 0.47% to 25,839.65, weighed down by weakness in IT, Auto, and Pharma stocks. The index moved within a narrow band of 25,728–25,923, failing to reclaim its previous close of 25,960, indicating near-term consolidation.

Broader market sentiment, remained constructive, reflected in a strong advance–decline ratio of 1,989 advances to 1,128 declines, signalling healthy participation despite headline index softness. On the sectoral front, IT (-1.19%), Auto (-0.72%), and Pharma (-0.52%) dragged the market, while Consumer Durables (+1.31%), PSU Banks (+1.29%), and Realty (+0.95%) outperformed. Mid- and small-cap segments also saw modest gains.

Nifty 50 extended its corrective phase with a decisive bearish candle, slipping below the rising short-term trendline that supported the index over the past several weeks. Today’s price action indicates a breakdown from the narrow ascending channel, suggesting waning momentum after multiple failed attempts to sustain higher-highs.

The index also closed below the 21-DMA, reinforcing short-term pressure, though medium-term averages continue to slope upward, keeping the broader trend structurally intact. Momentum indicators further validate the weakening setup. The RSI has slipped to approximately 47, trending lower and showing a clear loss of bullish strength without entering oversold territory, reflecting continued distribution.

Meanwhile, the MACD histogram has turned deeper into negative territory, and the MACD line remains below the signal line, indicating that bearish momentum is gradually strengthening.

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 index extended its decline for the second consecutive session, signalling continued near-term weakness. On the downside, initial support is placed at 25,700, while 25,300 remains a key demand area for sustaining the broader uptrend and preserving overall market stability. On the upside, a decisive close above 26,300 would improve the technical structure and open the way for a continuation of the rally toward 26,500–26,700 in the near term.

How did the Nifty Bank perform?

Nifty Bank opened on a weak note and traded with heightened volatility. After touching its intraday low, the index staged a partial recovery, offsetting most of its losses and ultimately closing nearly flat, down just 16 points.

On the daily chart, it formed a bearish candlestick pattern characterized by a lower-high and lower-low structure, indicating continued selling pressure. The index opened at 58,918.85, moved to an intraday high of 59,358.25, slipped to a low of 58,878.45, and finally closed near the upper band of the day’s range at 59,222.35.

The price action suggests cautious sentiment among market participants, with resistance remaining intact. Sustained movement above its 21-DMA will be critical for a meaningful trend reversal.

The RSI momentum indicator has moved sideways and is currently positioned at 56.67. At the same time, the MACD has produced a bearish crossover, although it remains above the zero line, indicating underlying strength despite near-term caution.

In line with O’Neil’s market direction framework, Bank Nifty remains in a Confirmed Uptrend, supporting the broader constructive market tone. Collectively, these signals suggest a favorable setup in which select banking names may be poised for potential breakouts. Nevertheless, ongoing monitoring is warranted to assess the strength of follow-through and short-term stability.

The index ended the session on a negative note, warranting a cautious trading stance. After briefly marking a new all-time high of 60,114, Nifty Bank experienced mild profit-taking. In the near term, 58,500–58,400 is likely to act as a strong support area, where pullbacks could attract renewed buying interest. On the upside, 60,114 remains a critical resistance level, and a sustained move above 60,000 would strengthen the existing bullish structure and potentially initiate the next upward leg. Ongoing assessment of price action will be important to gauge momentum and trend durability.

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.

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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.