Indian Markets Continue Bullish Run, Hit Fresh 52-Week High
Indian equity markets extended their gains for the second consecutive session on Thursday, with the Nifty 50 climbing 0.54% to close at 26,192.15 and the Sensex adding 0.52% to settle at 85,632.68. During the trading session, the Nifty 50 achieved a significant milestone by scaling a fresh 52-week high of 26,246.65, driven by positive global sentiment and substantial buying interest in heavyweight stocks including HDFC Bank and Reliance Industries.
Sectoral Performance and Market Breadth
On the sectoral front, Energy, Infrastructure, and Finance emerged as the top performers, reflecting growing confidence in domestic capital expenditure and credit growth. The broader market participation remained strong, as indicated by a robust advance-decline ratio. However, the Midcap and Smallcap indices showed some underperformance, suggesting a degree of caution and selective rotation among investors.
Macroeconomic optimism continues to fuel the market's strength, supported by healthy quarterly results and sustained foreign institutional investor (FII) inflows. While domestic factors remain positive, global cues continue to be a key monitorable for market direction.
MarketSmith India's Top Stock Recommendations
MarketSmith India, a leading stock research platform following William J. O'Neil's CAN SLIM methodology, has revealed its top stock picks for 21 November. Here are the detailed recommendations for investors seeking guidance in the current market environment.
Buy: Samvardhana Motherson International Ltd.
Current Price: ₹112
Buy Range: ₹111–113
Target Price: ₹129 in two to three months
Stop Loss: ₹105
The company presents a compelling investment case with its strong global client base across automotive original equipment manufacturers (OEMs). Its diversified product portfolio effectively reduces dependency risk, while the business demonstrates consistent revenue and profit growth with improving margins. The expanding footprint in electric vehicle (EV) and electronics segments, combined with a robust order book and strategic acquisitions for growth, positions the company well for future expansion.
Key metrics include a P/E ratio of 37.38, with the stock trading near its 52-week high of ₹116.38. The trading volume stood at ₹130.37 crore, indicating healthy investor interest. From a technical perspective, the stock has shown a trendline breakout on above-average volume.
However, investors should note the risk factors including high exposure to cyclical automotive demand trends, currency and geopolitical risks from global operations, integration challenges due to frequent acquisitions, escalating raw material and logistics costs, and revenue concentration risk from key OEM customers.
Buy: Central Depository Services (India) Limited
Current Price: ₹1,640
Buy Range: ₹1,630–1,650
Target Price: ₹1,840 in two to three months
Stop Loss: ₹1,580
This company benefits from its dominant market position in the depository services space. The growing financialization of savings in India, increasing IPO activity, and expanding mutual fund penetration are driving transaction volumes significantly. The stock is trading below its 52-week high of ₹1,829, with substantial trading volume of ₹728.42 crore recorded.
Technically, the stock has demonstrated a trendline breakout, suggesting potential upward momentum. The primary risk factors for this investment include high sensitivity to SEBI policies, transaction fee structures, and compliance norms that could impact earnings.
Technical Analysis and Market Outlook
Nifty 50 Performance and Technical Setup
The Indian equity market ended higher on 20 November, with Nifty 50 climbing 0.54% to close at 26,192.15, primarily driven by gains in Financials, Autos, and Oil & Gas stocks. The index opened flat but gathered momentum throughout the afternoon session, supported by steady global cues and buying interest in heavyweight banking stocks.
Sector-wise, Nifty Financial Services (+0.70%), Auto (+0.44%), and Oil & Gas (+0.55%) outperformed, while Consumer Durables (-0.53%) and Media (-1.54%) lagged behind. The broader market breadth, however, remained negative with 1,385 advances against 1,721 declines, reflecting selective participation despite index gains.
From a technical standpoint, Nifty 50 exhibited a constructive breakout above a medium-term consolidation pattern, supported by improving price action and volume confirmation. The index formed a strong bullish candle, closing near the day's high, signaling continuation of upward momentum. The price action remains well-aligned above the short- and medium-term moving averages, indicating a strengthening trend structure.
The Relative Strength Index (RSI) has edged higher and is currently hovering around 68, maintaining its position in the bullish zone without entering overbought territory, suggesting that momentum remains healthy. Meanwhile, the Moving Average Convergence Divergence (MACD) is trading in positive territory with a widening histogram, reinforcing the ongoing bullish bias.
Bank Nifty Shows Strong Momentum
Nifty Bank opened on a positive note but experienced intermittent profit booking, briefly pushing it into negative territory. However, renewed buying interest emerged after the intraday low, helping the index recover and close in positive territory. On the daily chart, the index formed a bullish candle, extending its gains and marking a fresh all-time high.
During the trading session, Bank Nifty opened at 59,308.20, recorded a high of 59,440.10, and a low of 59,125.25, before finally settling at 59,347.70, reflecting continued market strength and strong investor sentiment.
The momentum indicator, RSI, has advanced to 74, indicating robust market momentum despite approaching the overbought zone. Simultaneously, the MACD has registered a positive crossover, and its position above the zero line reinforces the prevailing upward bias.
According to the O'Neil methodology of market direction, both Nifty 50 and Bank Nifty remain in a Confirmed Uptrend, supported by strong technical setups and sustained buying on declines. The overall outlook remains bullish, with the potential for the indices to achieve new record highs, provided the current momentum is maintained above existing levels.
Nifty Bank continues to exhibit strong bullish momentum with no apparent signs of weakness. However, some near-term profit booking at higher levels cannot be ruled out. The index remains comfortably above all major moving averages, indicating robust underlying strength and sustained positive sentiment.
The overall outlook stays constructive as long as it holds above the 21-day moving average (currently near 58,254). Continued buying interest could propel the index toward 59,500–60,000 in the upcoming sessions. On the downside, immediate support is placed around 58,000–57,500, with a decisive break below this range potentially triggering a short-term correction.
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.
