Stocks to buy today: Two stocks recommendations by MarketSmith India for 6 March

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After a subdued start at 22,073, the index maintained an upward trajectory throughout the session, forming a bullish candlestick pattern on the daily chart—an early signal of potential trend reversal. Market breadth was notably strong, with an 8:1 advance-decline ratio, highlighting a decisive shift in sentiment.

Stock market technicals

Nifty 50 held firm above the key psychological level of 22,000, climbing toward 22,400 before settling just below. The 14-day Relative Strength Index (RSI) rebounded from the oversold region, now trending upward around 34, while the moving average convergence divergence (MACD) remains negative below the zero line, indicating lingering caution.

Under O’Neil’s market direction methodology, the index entered a Downtrend from a Rally Attempt on 21 February, after breaching its recent correction low of 22,725. For the market to shift back to a Rally Attempt, Nifty must either close in positive territory or in the upper half of the day’s range and hold above its latest low for three consecutive sessions. A follow-through day is required to confirm a return to an uptrend.

Key levels to watch

The index faces immediate resistance at 22,400–22,500. A sustained breakout above this range could open the door for further upside toward 22,700–22,800 in the near term. However, failure to breach 22,500 may keep Nifty rangebound between 22,000 and 22,400 in the coming sessions.

Nifty Bank’s performance

On Tuesday, Bank Nifty opened on a muted note but displayed resilience on Wednesday, forming two consecutive bullish candles on the daily chart—an early sign of potential upward momentum. The index opened at 48,241.30, fluctuated between 48,657.65 and 48,190.25, and closed at 48,489.95, indicating sustained buying interest.

Technical indicators

The 14-day RSI has edged higher, currently hovering around 41–42.

The MACD remains in negative crossover territory, trading below its central line, signaling continued weakness in momentum.

Under O’Neil’s market direction methodology, Bank Nifty downgraded to a Downtrend from an Uptrend Under Pressure on Monday, as the distribution day count rose to seven, retesting its correction low of 47,898.35. To shift back to a Rally Attempt, the index must either close in positive territory or in the upper half of the day’s range and hold above this low for three consecutive sessions. 

A follow-through day would then be necessary to confirm a return to an uptrend, with a focus on stocks breaking out of early-stage bases with strong relative strength and accumulation.

Key levels to watch

The index is currently trading below all key moving averages, maintaining a negative bias within a broader range of 47,500–50,000. A breakout or breakdown beyond this range could determine the next directional move. Immediate support is at 47,800, followed by 47,500, which aligns with the 100-week moving average.

Stocks to buy today, as recommended by MarketSmith India:

Sundaram Finance Ltd: Current market price: ₹4,689.70 | Buy range: ₹4,600-4,720 | Profit goal: ₹5,570 | Stop loss: ₹4,280 | Timeframe: 2–3 months

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Narayana Hrudayalaya Ltd: Current market price: ₹1,367.80 | Buy range: ₹1,340-1,380 | Profit goal: ₹1,630 | Stop loss: ₹1,250 | Timeframe: 2–3 weeks