Indian equity markets have kicked off the week with a historic surge, as the benchmark Nifty index shattered a significant 14-month resistance barrier to close at a fresh all-time high. This bullish momentum has set a confident tone, prompting leading brokerages to issue specific stock recommendations for investors.
Nifty's Record Run and Broader Market Caution
According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, the Nifty not only achieved a new peak but also registered its strongest-ever weekly and monthly close. The rally was broad-based among leading sectors, with Nifty Bank, Nifty Private Bank, Nifty Financial Services, Nifty Auto, and Nifty Infra all scaling record highs simultaneously.
However, Shah points out a note of caution beneath the headline optimism. While the Nifty Midcap 100 also reached a new high, the move was driven by select stocks, indicating narrow participation. More concerning is the performance of the small-cap segment. The Nifty Smallcap 100 index declined for the second consecutive week and continues to trade below its key moving averages (20, 50, and 100-day EMAs), reflecting a lack of momentum.
"Based on current chart structures, meaningful participation from small caps appears unlikely in the near term," Shah observed. He expects the uptrend to remain selective, driven by sector rotation and stock-specific actions. For Nifty, the immediate upside targets are placed at 26500 and 26800. On the downside, the zone of 25950–25900 (20-day EMA) is expected to act as a crucial support.
Bank Nifty Leads the Charge with Bullish Strength
The banking index continues to be the powerhouse of the current market rally. Bank Nifty posted gains for the fourth straight week, hitting a fresh record high and closing above the upper Bollinger Band on the weekly chart—a rare and potent bullish signal.
Shah notes that the momentum is exceptionally solid, with the Relative Strength Index (RSI) across timeframes in a super-bullish zone. All key technical indicators align to confirm the prevailing strength. The index is now poised to test 60300 and 61000 in the short term. The 58800–58700 zone, coinciding with the 20-day EMA, is identified as a key support level for any potential pullback.
SBI Securities' Top Stock Picks for the Week
Amid this environment, Sudeep Shah has identified two stocks for accumulation in the week starting December 1, 2025.
360 ONE WAM: The stock has shown a steady recovery after finding strong support near its 200-day EMA (₹1,060–1,050). It is now trading above key short-term averages and has closed above the upper Bollinger Band for two consecutive sessions. A breakout on the weekly chart, supported by rising volumes, and a bullish MACD signal further upside. Accumulation is recommended in the ₹1185-1175 zone with a stop loss at ₹1140. The stock is likely to test ₹1260 in the short term.
Mahindra & Mahindra (M&M): After consolidating around its 20-day EMA, the stock witnessed strong buying on Friday with higher volumes, confirming the short-term uptrend remains intact. The ADX indicator shows strengthening directional momentum, and the RSI has moved above 60, signaling increasing bullish strength. Accumulation is advised in the ₹3760-3730 range with a stop loss at ₹3600. The near-term target for the stock is ₹4020.
Disclaimer: The recommendations and views expressed are those of the individual analyst and do not represent the views of The Times of India. Investors are advised to consult certified experts before making any investment decisions.
