Nifty50 – 23,518.50
The benchmark index, Nifty50, took support around its 50-week moving average, which is around 23,300, and witnessed a strong bounce-back move in Tuesday’s trading session. The index opened with a gap-up and advanced to 23,780.65. However, it witnessed profit booking at higher levels and erased all its intraday gains after 2 pm, due to a sharp fall in Reliance Industries, L&T, and Nifty Metal. The benchmark index recorded a day’s low of 23,477 and closed near 23,518.50.
The market action formed a ‘gravestone doji’ candle with a higher-high and higher-low price structure. The momentum indicator RSI on the daily chart is trending downward in the oversold trajectory, currently placed at around 30, along with a negative crossover on MACD below the central line. Moving forward, 23,300 will be a key level to watch in the coming days.
As per O’Neil methodology of market direction, the current trend in this sectoral index is a “downtrend,” as it breached its recent correction low of 23,350.40.
Also Read: Why are stock market ‘experts’ reluctant to accept uncertainty?
Nifty Bank – 50,625.50
This major sectoral index opened with a gap-up on Tuesday morning and reached a high of 50,983.50. However, it witnessed sharp profit booking near the day’s high, erasing substantial intraday gain. The index reached a low of 50,440.85 and closed near the day’s low at 50,625.50, reflecting a minor gain of 0.52%. The market action during the day formed a ‘gravestone doji’ candle with a higher-high and higher-low price structure.
As per O’Neil methodology of market direction, the current trend in this sectoral index is a “downtrend,” as it breached its recent correction low of 50,194.
Apart from the above technical parameters, domestic factors like the state elections in Maharashtra and Chhattisgarh and international factors like the recent missile attack by the Ukrainian army near the Russian border pose serious concern. The market may remain volatile ahead of the state election outcomes and geo-political instability.
Two stocks buy recommendations from MarketSmith India:
Aditya Birla Sun Life AMC: Current market price ₹ 819.75 | Buy at ₹ 800–825| Profit goal ₹ 920 | Stop loss ₹ 777| Timeframe 3-4 weeks
Hyundai Motor India Ltd: Current market price ₹ 1,829.80 | Buy at ₹ 1,800–1,840 | Profit goal ₹ 2,150 | Stop loss ₹ 1,690 | Timeframe 2–3 months
Also read: How to turn stock market losses into tax savings
