Stocks to buy: Two stock recommendations from MarketSmith India for 11 December

On Tuesday, the index closed marginally lower, slipping 0.04% in a subdued trading session. It formed a bearish candle with a lower-high and lower-low price structure, reflecting continued cautious sentiment. The index traded within a tight range of 24,510–24,678 before settling 9 points lower at 24,610. The advance-decline ratio remained balanced at 1:1, indicating flat market breadth.

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The Nifty 50 index has retraced 50% of its recent decline and is currently encountering resistance near its 100-day moving average (100-DMA), positioned around 24,700. This level is likely to play a pivotal role in today’s trading session.

The momentum indicator, the 14-period Relative Strength Index (RSI), is trending upward and currently stands at approximately 58, signalling improving momentum. Additionally, the Moving Average Convergence/Divergence (MACD) is displaying a positive crossover and is trending above the central line, indicating bullish undertones in the near term.

The current trend reflects a bullish sentiment, but the index faces resistance near its 100-DMA, around 24,700. Fresh bullish positions should be considered only if the index decisively crosses and sustains above this level. A sustained move above 24,700 could pave the way for an upside toward 25,000–25,200. Conversely, failure to breach this resistance may lead to continued volatility.

As per O'Neil's market direction methodology, the market is currently in a “Rally Attempt." This status is confirmed when the index closes higher off its most recent bottom for three consecutive days, following a Correction (or Downtrend).

How Nifty Bank performed

The Nifty Bank index opened on a subdued note, experienced some intraday volatility, but ultimately closed near the day’s high. On Tuesday, the index formed a bullish candle on the daily chart, reflecting positive sentiment. It is trading comfortably above all its key moving averages, maintaining a positive bias. The index moved within a range of 53,302.65–53,624.05 before closing at 53,577.70.

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The momentum indicator, RSI, has flattened slightly and is trending upward, currently positioned around 65. Additionally, the MACD shows a positive crossover, reinforcing a bullish bias. The Average Directional Index (ADX), a trend strength indicator, also signals a strong bullish trend in the index.

At present, the upside appears capped at 53,900–54,000, a key resistance zone. A decisive breakout above this level could set the stage for a move toward 54,500 in the near term. Sustained trading above 54,500 may further accelerate the uptrend, propelling the index toward uncharted territory around 57,000 in the coming weeks. However, failure to breach and hold above this resistance could lead to choppy and range-bound trading.

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According to O'Neil's market direction methodology, the current market status is classified as a "Confirmed Uptrend." An uptrend is established either through a follow-through day, marked by a significant gain on higher volume, or when the index reclaims its prior uptrend high.

Two stocks to buy, recommended by MarketSmith India:

Poly Medicure Ltd: Current market price ₹ 2,968.45 | Buy at ₹ 2,900–3,000 | Profit goal ₹ 3,800 | Stop loss ₹ 2,690 | Timeframe 2–3 Months

Godrej Industries Ltd: Current market price ₹1,102.90 | Buy at ₹1,080–1,110 | Profit goal ₹1,330 | Stop loss ₹ 1,030 | Timeframe 3–4 Months