Stock recommendations for 4 November from MarketSmith India
MarketSmith India reveals its top stock recommendations for today, 4 November. Get expert insights into the best-performing stocks to guide your investment decisions.
The Indian benchmark indices ended Monday's session marginally positive, consolidating at elevated levels after a sharp rally last month. The Nifty 50 closed 0.16% higher at 25,763, and the Sensex gained 0.05% at 83,976. A lack of fresh decisive domestic cues and mild profit booking at higher levels kept the market range-bound for most of the day. Sectoral performance was mixed, though the broader market outperformed, with the Nifty Midcap 100 rising 0.77% and the Nifty Smallcap 100 advancing 0.72%. The positive market breadth was evident with the advance-decline ratio favouring gainers. PSU Banks led the charge, continuing their momentum on healthy quarterly earnings and improving asset quality, while IT stocks faced pressure, easing amid fading expectations of an immediate US Fed rate cut.
Two stock recommendations by MarketSmith India:
Buy: Multi Commodity Exchange of India (current price: ₹9,526)
Why it’s recommended: Market leader in India’s commodity derivatives with strong network effects, and new product launches (electricity futures, index-based contracts) to boost volumes.
Key metrics: P/E: N/A | 52-week high: ₹9,624 | Volume: ₹746 crore
Technical analysis: Downward-sloping trendline breakout
Risk factors: High dependence on bullion and energy segments, sensitive to Sebi regulations and compliance norms.
Buy: ₹9,450-9,550
Target price: ₹10,400 in two to three months
Stop loss: ₹8,960
Buy: India Glycols Ltd (current price: ₹1,015)
Why it’s recommended: Diversified portfolio in green and speciality chemicals, and strong demand for bio-based and sustainable products.
Key metrics: P/E: 31.67 | 52-week high: ₹1,066 | Volume: ₹68.11 crore
Technical analysis: Downward sloping trendline breakout
Risk factors: High working capital and debt requirements, exposure to volatile raw material and feedstock prices.
Buy at: ₹1,000-1,020
Target price: ₹1,150 in two to three months
Stop loss: ₹950
How Nifty 50 perform yesterday
Indian equities ended on a steady note on 3 November, with benchmark indices posting modest gains amid range-bound trade. The Nifty 50 advanced 41 points, or 0.16%, to close at 25,763.35, after oscillating between 25,645.50 and 25,803.10 during the session. The Sensex edged higher in tandem as well. Market breadth was mildly positive, with 1,798 stocks advancing, 1,313 declining, and 101 unchanged, reflecting selective buying across sectors.
On the sectoral front, Nifty Pharma (+1.2%), PSU Banks (+1.9%), and Realty (+2.2%) led the gains, while Consumer Durables (-0.29%), IT (-0.17%), and FMCG (-0.10%) saw limited weakness. Broader indices outperformed, supported by strength in mid-cap healthcare and financial services.
On the daily chart, the index continues to trade above all its key moving averages (20-, 50-, and 200-day EMAs), reinforcing a medium-term bullish structure. However, the index is currently encountering resistance near 26,000-26,100, aligned with a long-term descending trendline visible from the previous swing highs. Sustained trade above this level would signal a potential continuation of the breakout. Failure to hold could invite near-term profit booking. The RSI has cooled slightly to around 59, down from overbought levels, suggesting consolidation rather than reversal. Momentum remains constructive as long as RSI holds above 55. Meanwhile, the MACD remains in positive territory, though the histogram shows narrowing bars, indicating slowing momentum and the possibility of sideways movement in the short term.
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 rebounded from key support levels, reaffirming underlying market strength. On the technical front, the Nifty now faces a crucial resistance zone between 26,000 and 26,300. A decisive breakout above this range could open the door to new all-time highs. On the downside, immediate support lies at 25,400, while a stronger base near 25,000 continues to provide stability for the broader uptrend. Overall, the market structure remains constructive as long as the index sustains above 25,400, a key breakout zone aligned with the downward-sloping trendline.
How did Nifty Bank perform yesterday?
The Nifty Bank concluded the session at 58,101.45, registering a moderate gain of 0.56% amid a mix of stock-specific momentum and broad-based consolidation. The outperformance was distinctly driven by the public sector undertaking (PSU) banking space, which continued its multi-week rally on improving asset quality and market speculation regarding a potential hike in the foreign institutional investor (FII) limit.
Key stock performances saw Canara Bank and Punjab National Bank (PNB) surge more than 2-3%, leading the charge, supported by strong buying in other PSU names. Conversely, the index's overall advance was tempered by profit booking in core private banking giants like ICICI Bank and HDFC Bank, which ended marginally in the red, contributing to the choppy intraday move.
The index has successfully broken out above a descending trendline drawn from the August highs, reaffirming a medium-term reversal pattern. The price is comfortably holding above all its key moving averages, indicating a well-established uptrend with strong underlying momentum. On the momentum front, the RSI has eased slightly to around 65, retreating from the overbought zone near 70, suggesting mild consolidation rather than trend exhaustion. This cooling-off phase could offer a healthy setup for further upside if the RSI sustains above 60.
Meanwhile, the MACD remains in positive territory, with the signal line indicating a bullish crossover, though the histogram suggests a flattening slope, implying potential short-term consolidation. From a technical standpoint, immediate support lies near 57,000, with a stronger base around 56,900, aligning with the 21-DMA.
However, recent profit booking may trigger further downside pressure in the coming days. A break below key support could accelerate weakness. On the upside, only a sustained move above 58,550 may revive bullish momentum toward 60,000. While the broader structure remains positive, traders should stay cautious and watch for signs of selling pressure before initiating fresh long positions. Volatility is expected to rise, and risk management will be crucial in the near term.
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
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.
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