MarketSmith India’s top stock recommendations for 11 March
Aavas Financiers
Current market price: ₹1,752.35 | Buy range: ₹1,700–1,760 | Profit goal: ₹1,890 | Stop loss: ₹1,670 | Timeframe: 1–2 months
Orient Cement
Current market price: ₹340.25 | Buy range: ₹330–342 | Profit goal: ₹381 | Stop loss: ₹323 | Timeframe: 1–2 months
Nifty 50: How the benchmark index performed on 10 March
Nifty 50 opened on a mildly negative note and experienced volatility throughout the trading session. The index tested its 21-day exponential moving average (EMA), currently positioned around 22,682. However, it faced resistance at this level, leading to profit-booking. As a result, the market formed a bearish candle with a long upper shadow, indicating selling pressure at higher levels. Market breadth remained weak, with the advance-decline ratio settling around 1:4.
Nifty FMCG was the sole gainer among sectoral and broader market indices. Nifty Realty, Energy, Auto, and Metal were the worst performers, each declining more than 1%.
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From a technical standpoint, the 14-day relative strength index (RSI) remains in the bearish zone, with its slope turning negative and currently positioned around 38-39. The moving average convergence divergence (MACD) exhibited a positive crossover and continued to trend below the central line.
Following O’Neil’s methodology of market direction, MarketSmith India shifted the market status to ‘rally attempt’ from ‘downtrend’ last Thursday. From here, we would prefer to see a follow-through day or Nifty scaling a new high before upgrading the status to ‘confirmed uptrend’. On the flip side, if Nifty breaches its recent low of 47,841, the market status will revert to ‘downtrend’.
Looking ahead, the 21-EMA remains a critical level to monitor. A sustained move above this level could pave the way for an upward trajectory toward 22,850–23,000 in the coming days. However, failure to surpass and maintain above this threshold may lead to continued volatility.
How did Nifty Bank perform?
On Monday, Bank Nifty opened on a negative note and remained in negative territory for most of the session. The index continued to trade with a negative bias and closed near the day’s low. In the previous session the index opened at 48,312, fluctuated from 48,600–48,124 and closed at 48,217. Market action during the day formed a bearish candle with a long upper shadow, indicating profit booking at higher levels.
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On the daily chart, the 14-day RSI is trending with a negative trajectory, currently positioned around 38–39. Meanwhile, the MACD is also trading with a negative crossover and remains below its central line, indicating continued weakness in momentum.
According to O’Neil’s methodology of market direction, the market status was shifted from ‘downtrend’ to ‘rally attempt’ last Thursday. From here, we would prefer to see a follow-through day before shifting the status to ‘confirmed uptrend’. On the flip side, if Nifty breaches its recent low of 21,965, the market status will revert to ‘downtrend’
Nifty Bank index is trending below all its key moving averages, in the range of 48,000–50,000. Moving forward, 48,000–47,800 is a key support zone on the downside. Falling below these levels may open a downside window in this major sectoral index.
Also read: Bharat Electronics needs booster shot of order inflow pick-up
About MarketSmith India:
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registered Research Analyst Registration No.: INH000015543
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.
