Indian equity benchmarks retreated from their recent peaks on Tuesday, setting a cautious tone as investors await the Reserve Bank of India's monetary policy decision. Against this backdrop of consolidation, research platform MarketSmith India has identified two stocks for potential investment on Wednesday, 3 December 2025.
Market Snapshot: Indices Pare Gains Ahead of RBI Meet
The trading session on 2 December concluded with notable losses. The Nifty 50 index fell by 143.00 points, or 0.55%, to close at 26,032.75. Similarly, the Sensex dropped 414.71 points, representing a 0.48% decline, to finish at 85,233.87. This pullback was primarily driven by profit-booking in heavyweight financial and energy stocks, which erased the gains from the previous session's record highs.
Sectoral performance was largely weak, with financial services and banking indices bearing the brunt of the selling. Minor support came from select IT and FMCG stocks. The overall market breadth was negative, indicating widespread selling pressure beyond just the major indices. Investor focus is now squarely on the RBI's Monetary Policy Committee (MPC) meeting, which begins on 3 December, for cues on the interest rate trajectory following strong recent GDP data.
MarketSmith India's Top Stock Picks for 3 December
Here are the two stocks recommended by MarketSmith India for consideration on Wednesday.
1. Asian Paints Ltd
The current market price of Asian Paints is ₹2,954. The recommendation is based on the company's dominant market leadership, formidable brand equity, and extensive distribution network spanning over 70,000 dealers. From a technical perspective, the stock is showing a bullish flag breakout pattern.
Key metrics for Asian Paints include a Price-to-Earnings (P/E) ratio of 73.31 and a 52-week high of ₹3,500. The trading volume for the day stood at ₹615.16 crore. MarketSmith suggests a buy zone between ₹2,930 and ₹2,970, with a target price of ₹3,200 over a two to three-month horizon. Investors are advised to place a stop loss at ₹2,840 to manage risk.
Potential risk factors for the stock include rising competition, notably from Grasim's entry into the paints sector, and a possible slowdown in housing and real estate cycles.
2. Siemens Ltd
Siemens is currently trading at ₹3,361. The recommendation highlights the company's strong positioning to benefit from India's ongoing industrial and infrastructure capital expenditure cycle. Its leadership in automation and digitalization solutions is a key strength. Technically, the stock has broken out of a downward-sloping trendline.
The company's P/E ratio is 57.94, and its 52-week high is ₹4,153. The day's trading volume was ₹249.65 crore. The advisory recommends buying in the range of ₹3,330 to ₹3,390. The set target price is ₹3,800 within two to three months, with a stop loss at ₹3,150.
Risks associated with Siemens include a high dependence on government policy and capex cycles, along with competitive pressures in several of its business segments.
Technical Outlook for Key Indices
The Nifty 50's decline formed a second consecutive subdued candle, signaling a loss of momentum after the recent rally. Momentum indicators reflect this shift. The Relative Strength Index (RSI) has rolled over from elevated levels and is trending lower, while the Moving Average Convergence Divergence (MACD) has triggered a bearish crossover. Despite the pullback, the broader market status is classified as a "Confirmed Uptrend" per O'Neil's methodology.
Immediate support for the Nifty is seen at the 25,850 level, with a stronger demand zone near 25,700. A decisive close above 26,300 would be constructive for a renewed rally towards 26,500-26,700.
The Nifty Bank index also faced profit-booking, closing at 59,681.35 after touching an all-time high of 60,114.30 in the previous session. Its momentum indicators show similar signs of fatigue, with the RSI trending lower from near overbought territory. The index finds strong support in the 58,500-58,400 range, while the recent high near 60,114 acts as a resistance.
MarketSmith India is a stock research and advisory platform focusing on the Indian market, utilizing the CAN SLIM investment methodology founded by William J. O'Neil. It is registered with SEBI as William O’Neil India Pvt. Ltd. (Registration No.: INH000015543).
Disclaimer: The views and recommendations expressed are those of the individual analyst and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
