Investors lost more than ₹7 trillion in a single session as the cumulative market capitalization of the firms listed on the BSE dropped to nearly ₹463.6 trillion from ₹471 trillion in the previous session.
Two stock recommendations by MarketSmith India for 9 December:
Buy: Coromandel International Ltd (current price: ₹2,314)
- Why it’s recommended: Strong market position in phosphatic fertilizers, diversified product mix: fertilizers, crop protection, specialty nutrients, stable demand driven by India’s agricultural sector, backward integration reducing raw-material dependency, healthy balance sheet and consistent cash flows, strong distribution network and dealer reach, government support for agriculture boosting volumes, and strategic capex in value-added and specialty products.
- Key metrics: P/E: 23.87, 52-week high: ₹879.80, volume: ₹216.74 crore
- Technical analysis: Reclaimed 100 DMA on above-average volume
- Risk factors: High dependence on imported raw materials (phosphate, ammonia). Vulnerability to global commodity and freight price volatility, regulatory risk due to fertilizer subsidy policies, seasonal and monsoon-dependent demand, competitive pressure from domestic and global players, forex risks due to import reliance, margin pressure during adverse subsidy delays, and execution risks in expansion and diversification projects.
- Buy at: ₹2,300–2,330
- Target price: ₹2,510 in two to three months
- Stop loss: ₹2,220
Buy: Fiem Industries Ltd (current price: ₹2,266)
- Why it’s recommended: Strong OEM relationships with major two-wheeler manufacturers, expansion into LED lighting, and new technology products
- Key metrics: 28.14; 52-week high: ₹2,378; volume: ₹14.89crore
- Technical analysis: 21-EMA Bounce
- Risk factors: High revenue dependence on a few large OEMs, slower-than-expected EV transition, or two-wheeler demand weakness
- Buy at: ₹2,250–2,300
- Target price: ₹2,450 in two to three months
- Stop loss: ₹ 2,180
Nifty 50: How the index performed on 8 December
Indian equities ended sharply lower on 8 December, with Nifty 50 closing at 25,960.55, down 0.86%, after slipping steadily through the session amid weak global cues and broad-based selling pressure. The market breadth was deeply negative, with only 580 stocks advancing, while 2,580 declined and 87 remained unchanged, reflecting pronounced risk aversion.
On the sectoral front, selling was widespread, led by FMCG, Consumer Durables, Healthcare, PSU Banks, and Metals, each losing between 1–3%. IT and Financials also contributed to the fall, though with relatively milder declines. Profit booking in heavyweights and caution ahead of upcoming macroeconomic data releases added to the downside. The weak advance-decline ratio underscores deteriorating market breadth and signals potential near-term consolidation unless buying interest revives at lower levels.
Nifty 50 extended its corrective tone, slipping below the mid-range of its rising wedge structure, indicating waning upside momentum within the broader uptrend. Price action shows repeated upper-trendline rejections over the past week, followed by today’s decisive bearish candle with higher volume. This reflects a shift toward short-term distribution.
The index continues to hover around the rising lower trendline, suggesting that buyers are defending the structure but with noticeably reduced strength. RSI has rolled over from 60 and now trends downward, signalling a loss of momentum and a mild bearish divergence from recent swing highs. MACD has also flattened and crossed marginally into a negative histogram, reinforcing the view that upside momentum is weakening.
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 index failed to sustain above its 21-DMA and slipped below the psychological 26,000 mark, indicating near-term weakness. On the downside, initial support is placed at 25,850, while 25,700 remains a critical demand area for preserving the broader uptrend and maintaining overall market stability. On the upside, a decisive close above 26,300 would strengthen the technical setup and pave the way for a continuation of the rally toward 26,500–26,700 in the near term.
How did the Nifty Bank perform?
Nifty Bank opened on a weak note and traded in negative territory for most of the session. The index briefly moved into positive territory but encountered profit booking at higher levels. On the daily chart, it has formed a bearish candle, with a lower-high and lower-low price structure. The index opened at 59,672.05, registered an intraday high of 59,713.15, declined to 59,030.60, and ultimately closed near the day’s high at 59,238.55.
The momentum indicator RSI has turned lower and is currently positioned at 57. Meanwhile, the MACD has generated a bearish crossover but remains above the zero line, indicating underlying strength despite near-term caution. According to O’Neil’s market direction methodology, Bank Nifty remains in a Confirmed Uptrend, reinforcing the broader positive sentiment. This combination of signals suggests a constructive setup in which select banking stocks may present breakout opportunities. However, continued monitoring is essential to assess follow-through strength and near-term stability.
The index closed on a negative note, signaling the need for a cautious trading approach. After briefly touching a new all-time high of 60,114, Nifty Bank witnessed mild profit-taking. In the near term, 58,500–58,400 is expected to serve as a strong support area, where pullbacks may attract renewed buying interest. On the upside, 60,114 remains a key resistance level, and a sustained move above 60,000 could reinforce the prevailing bullish structure and pave the way for the next upward leg. Continual monitoring of price action will be essential to gauge momentum and trend strength.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
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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.