Stock market today: A recap
The Nifty 50 ended flat on Thursday, 13 February, after a volatile session, closing at 23,031.40, down 0.06%. The index opened muted at 23,055.75, briefly rallied on the back of gains in Pharma, Realty, and Metal stocks, but failed to sustain momentum, facing resistance at its 21-day moving average (DMA). A doji candle with a long upper wick signals profit booking at higher levels.
Sector-wise, Realty, Metal, and BFSI were the only gainers, while others ended flat to negative. The advance-decline ratio stood at 2:1, favoring decliners.
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From a technical perspective, the index rebounded after finding crucial support near its previous swing low of 22,786. However, it faced strong resistance at the 21-DMA in the last session. The index remains below all key moving averages, indicating a negative bias.
Momentum indicators reflect weak sentiment. The 14-day Relative Strength Index (RSI) is trending sideways around 40. The MACD has formed a negative crossover below the central line, reinforcing bearish momentum.
Under O’Neil’s market direction methodology, Nifty’s status was downgraded to ‘Uptrend Under Pressure’ on Tuesday after breaching its 21-DMA, with the distribution day count rising to two. If distribution days increase further or Nifty fails to hold above 22,787, the market could shift to a Downtrend. On the other hand, a rebound past 23,807.30—the recent rally high—would restore it to a Confirmed Uptrend.
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Looking ahead, 22,800 remains a crucial support level, and a breach could deepen the downside. A sustained move above 23,000, however, may trigger a recovery toward the 23,350–23,400 range.
How Nifty Bank performed
On Thursday, Bank Nifty opened flat but saw buying interest in the first half, trading positively before turning volatile post-noon and closing slightly lower. Despite the decline, it remained above its 21-DMA. The index formed a gravestone doji candlestick pattern on the daily chart, signaling profit booking at higher levels. It opened at 49,469.35, fluctuated between 49,836.10 and 49,276.10, and closed at 49,359.85, marking a modest 0.15% gain.
The 14-day RSI remained sideways at around 46, while the MACD showed a positive crossover near its central line. Under O’Neil’s market direction methodology, Bank Nifty was upgraded to a Confirmed Uptrend last Tuesday after crossing 49,650.60, its recent rally high. However, a rise in distribution days or a breach of key support could downgrade it to an Uptrend Under Pressure.
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The index is currently hovering around its 21-DMA at 49,300. A sustained move above this level could drive it toward the 50,000–50,500 range if buying interest persists. Conversely, failure to hold above this support may keep the index volatile, with immediate downside support at 48,700–48,500.
Two stocks to buy, recommended by MarketSmith India:
● Muthoot Finance Ltd: Current market price ₹ 2,317.8 | Buy range ₹ 2,270–2,330 | Profit goal ₹ 2,730 | Stop loss ₹ 2,120 | Timeframe 2–3 Months
● Sun Pharmaceutical Industries Ltd.: Current market price ₹ 1,746 | Buy range ₹ 1,720–1,760 | Profit goal ₹ 1,890 | Stop loss ₹ 1,680 | Timeframe 2–4 Weeks
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.
