Stocks to buy: Two stock recommendations from MarketSmith India for 6 December

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Subscribe to enjoy similar stories. Nifty 50, India's benchmark stock market index, sustained its positive momentum for the fifth consecutive session. On 5 December, Thursday, the index opened with a gap-up and formed a bullish candle on the charts.

While it faced initial selling pressure, strong buying in sectors like IT, banking, and heavyweight Reliance Industries Ltd pushed it to an intraday high of 24,857 before closing at 24,708. Notably, Nifty 50 reclaimed both its 50- and 100-day moving averages (DMA), with nearly all sectoral indices ending in the green except for Nifty Realty, which slipped 0.25%. The advance-decline ratio favoured the bulls, settling above 1:1.

Read this | Nifty’s next move: What Reliance and HDFC Bank are signalling The index retraced 50% of its recent decline and is now hovering near its 100-DMA at around 24,700, which may act as a crucial level in today’s trading session. The momentum indicator, the 14-period Relative Strength Index (RSI), continued its upward trend and is currently positioned around 60, signalling strengthening momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator is trending with a positive crossover and currently holds above the central line, signalling bullish momentum.

The prevailing trend suggests that bullish sentiment is likely to persist. A sustained move above 24,700 could propel the index toward the 25,000–25,200 range in the coming days. According to O'Neil's methodology for market direction, the current market status is classified as a “rally attempt." This phase begins on the third day after the index closes higher than its recent bottom, following a period of correction (also referred to as a downtrend).