Stock market recap: The Indian stock market ended lower for the third consecutive session on Wednesday, 10 December, amid mixed global cues ahead of the US Federal Reserve policy outcome later today.
Market benchmark Sensex rose as much as 354 points to hit an intraday high of 85,020.34 during the session, but failed to hold gains and dropped 629 points from the day's high. Eventually, the 30-share pack ended 275 points, or 0.32%, lower at 84,391.27, while the Nifty 50 settled at 25,758, down 82 points, or 0.32%.
The BSE Midcap and Smallcap indices fell 1.08% and 0.58%, respectively.
Two stock recommendations by MarketSmith India for 11 December:
Buy: ICICI Prudential Life Insurance Co. Ltd (current price: ₹643)
- Why it’s recommended: Strong brand equity and distribution backed by ICICI ecosystem, diversified product mix (ULIPs, Protection, Savings), growing protection business improving margin profile, consistent value of new business (VNB) growth drivers, healthy solvency ratio and capital position, improving persistency ratios across key cohorts, expanding bancassurance and digital channels, operating leverage potential as scale increases.
- Key metrics: P/E: 71.51, 52-week high: ₹700, volume: ₹119.19 crore
- Technical analysis: Reclaimed its 21-DMA on above average volume
- Risk factors: High dependence on capital-market performance (ULIP-heavy mix), regulatory changes impacting products, commissions, or capital norms, competitive industry pressure affecting margin growth, slower-than-expected VNB and APE growth, persistency deterioration in volatile markets, interest-rate cycles affecting demand for savings products, execution risk in shifting toward higher-margin segments.
- Buy at: ₹835–645
- Target price: ₹740 in two to three months
- Stop loss: ₹600
Buy: Hindustan Zinc Ltd (current price: ₹513)
- Why it’s recommended: Market leadership in zinc, lead, and silver production, ongoing capacity expansion, and mine development projects
- Key metrics: P/E: 20.15; 52-week high: ₹808; volume: ₹1,077 crore
- Technical analysis: Downward sloping trendline breakout
- Risk factors: High dependence on global metal prices, single-sector concentration risk
- Buy at: ₹505–515
- Target price: ₹580 in two to three months
- Stop loss: ₹ 481
Nifty 50: How the index performed on 10 December
India’s equity benchmarks ended lower on December 10th, with Nifty 50 closing at 25,758, down 0.32% (-81.65 points), after failing to sustain early gains. Sensex also eased, tracking cautious global sentiment ahead of key macro data releases.
Market breadth remained weak, with 1,353 stocks advancing against 1,753 declining, indicating broad-based selling pressure. On the sectoral front, IT led the drag with a sharp decline as global tech cues softened. Meanwhile, Consumer Durables, Financial Services, and Private Banks also weighed on the indices. In contrast, Metals, Pharma, and Oil & Gas showed modest resilience, aided by selective buying.
Nifty 50 continued its corrective phase, slipping further within the upper portion of its rising broadening structure. Price action indicate a clear loss of momentum as the index has moved below the short-term moving averages. Recent candles reflect sustained selling pressure after repeated rejections near the upper trendline of the pattern.
RSI has softened to the mid-40s, indicating waning bullish strength and a drift toward neutral-to-weak territory without yet entering oversold conditions. The MACD has extended its bearish crossover, with the histogram deepening into negative territory, signalling a continuation of downside momentum.
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 third 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 positive note but soon faced volatility and sustained selling pressure, pulling the index into negative territory. It formed three consecutive negative candles on the daily chart and continues to trade below its 21-DMA, signalling weakness. The index opened at 59,281.55, touched an intraday high of 59,440.90, slipped to 58,853.90, and closed at 58,917. The price action reflects cautious sentiment among participants, with resistance remaining intact. Overall bias remains muted, and traders may prefer selective positions. A decisive move above resistance levels is needed to revive momentum.
The RSI has moved sideways and is currently at 52, while the MACD has generated a bearish crossover but remains above the zero line, indicating underlying strength despite near-term caution. According to O’Neil’s methodology of market direction, Bank Nifty remains in a Confirmed Uptrend, reinforcing a constructive broader tone. These signals collectively suggest a favourable setup in which select banking names may be positioned for potential breakouts. However, ongoing monitoring is essential to assess the strength of follow-through day and short-term stability.
The index ended the session on a negative note for the third consecutive day, warranting caution and close monitoring. It is currently trading below its 21-DMA, which is set at 59,138, with the next key support level near 57,958, approximately 2% below the current levels and aligned with the 50-DMA. Selling pressure has been evident since the index registered a new all-time high of 60,114, followed by mild profit-taking. On the upside, 60,114 remains a critical resistance zone, and a sustained move above 60,000 would reinforce the bullish structure and potentially trigger the next upward leg. Continuous assessment of price action will be essential 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.
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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.