The weakness was broad-based, reflected in a negative advance-decline ratio as significantly more stocks declined than advanced—signalling caution beyond the frontline indices. Among sectors, heavyweight IT, FMCG, and select financial stocks dragged the market lower, while PSU banks, metals, and realty names displayed notable resilience.
On the geopolitical front, a drop in crude oil prices, driven by optimism around potential Ukraine-Russia peace talks, offered some relief. But selling pressure from foreign funds continued to weigh on sentiment.
Two stock recommendations by MarketSmith India for 26 November
Buy: Ethos Ltd (current price: ₹3,060)
- Why it’s recommended: Market leader in India’s organized luxury watch retail space, expanding store network and entry into tier-2/3 cities, increasing share of high-margin exclusive and luxury brands, diversification into other luxury categories like jewellery and accessories, low debt and healthy liquidity position, strong brand partnerships with global watchmakers, growing contribution from online sales channel, and improving customer loyalty through membership and service programs.
- Key metrics: P/E: 84.04, 52-week high: ₹3202.07, volume: ₹21.14 crore
- Technical analysis: Reclaimed its 21-DMA on above average volume
- Risk factors: Dependent on discretionary luxury spending — cyclical in nature, high working capital and inventory requirements, margin pressure from new store costs and rentals, exposure to foreign exchange fluctuations due to imports, limited domestic manufacturing — reliant on global brands, premium valuation relative to peers, competition from new luxury entrants and online players, and risk of slowdown in high-income consumer demand.
- Buy at: ₹3,030–3,090
- Target price: ₹3,450 in two to three months
- Stop loss: ₹2,880
Buy: Coforge Ltd (current price: ₹1,832)
- Why it’s recommended: Diversified vertical mix and digital transformation momentum
- Key metrics: 55.10; 52-week high: ₹2,005; volume: ₹275.67 crore
- Technical analysis: trendline breakout
- Risk factors: High client concentration, currency volatility
- Buy at: ₹1,820–1,840
- Target price: ₹2,000 in two to three months
- Stop loss: ₹ 1,760
How the Nifty 50 performed on 26 November
Indian equities ended lower on Tuesday, snapping a brief recovery as profit-booking emerged in late trade amid weak global cues.
Nifty 50 slipped 0.29% to close at 25,884.8 after touching an intraday high of 26,032, while Sensex also eased in tandem. Market breadth remained modestly positive with 1,642 stocks advancing and 1,476 declining, indicating selective buying interest.
On the sectoral front, weakness in IT (-0.6%), FMCG (-0.2%), and Consumer Durables (-0.6%) offset gains in PSU Banks (+1.4%), Pharma (+0.4%), and Realty (+1.6%), reflecting a rotation toward defensives and value counters. Nifty Financial Services ended nearly flat, while Metal and Healthcare names added mild support.
Price action indicates that the index is retreating from the upper end of a short-term consolidation channel, signalling hesitation after a sharp upward movement in prior sessions. The candle structure suggests mild profit-booking, though the broader trend remains positive with prices holding above key moving averages. Momentum indicators imply cooling strength. The RSI has eased from overbought territory to around 54, suggesting a pause in bullish momentum without indicating a reversal. Meanwhile, the MACD line is flattening just above the signal line, reflecting diminishing buying pressure and a possible near-term consolidation phase.
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 RSI has eased slightly to around 62, indicating a cooling of momentum while still remaining in bullish territory. This reflects a healthy pullback within an uptrend. Meanwhile, the MACD remains in positive alignment, though the histogram shows signs of narrowing, hinting at a potential slowdown in upward momentum.
The index ended lower but managed to hold marginally above its 21-DMA, suggesting a near-term pause in momentum. On the downside, immediate support is placed at 25,850, while a stronger base near 25,700 remains pivotal for sustaining the broader uptrend.
A decisive break below 25,700 could trigger further downward movement toward the 25,500–25,450 zone in the coming sessions. On the upside, 26,250 will serve as a key resistance, and a sustained move above this level could spark a fresh rally toward 26,300–26,500 in the near term.
How did Nifty Bank perform?
Bank Nifty opened on a positive note but witnessed volatility as the session progressed, eventually closing in negative territory. On the daily chart, it formed a third consecutive bearish candle, indicating ongoing profit booking after the recent upward movement.
The index opened at 58,925.65, touched an intraday high of 59,166.15, and slipped to a low of 58,746.20 before settling at 58,820.30. This price action highlights selling pressure at higher levels and points to mild consolidation within the broader uptrend, suggesting a healthy pause before the next potential leg higher.
The momentum indicator RSI has remained range-bound and is currently positioned at 63, suggesting a brief consolidation in the ongoing momentum. The MACD has registered a negative crossover. However, its placement above the zero line continues to indicate an underlying positive bias. In line with the O’Neil methodology, Bank Nifty maintains its Confirmed Uptrend, supported by a resilient technical structure and consistent buying interest on declines. Overall, the trend remains constructive, with potential for further upside as long as the index remains above its key support levels.
Despite the index closing flat for the third consecutive session, Bank Nifty continues to exhibit strong resilience, showing no signs of weakness. The index remains comfortably above its key moving averages, with the 21-DMA near 58,384 serving as a strong support zone. As long as it remains above this level, the broader outlook stays firmly positive. Persistent buying momentum could propel the index toward 59,500–60,000. Immediate support is placed around 58,000–57,500, and any minor dip toward this zone is likely to attract fresh buying, keeping the buy-on-dips strategy intact.
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.
