Stock recommendations for 9 April from MarketSmith India

Stock market recap: The markets opened with a sharp gap-up and closed significantly higher on Wednesday, owing to a two-week ceasefire between the United States and Iran. The geopolitical de-escalation triggered a sharp 14% decline in the price of crude oil, which fell below $95 a barrel, easing inflation concerns and improving India’s macro outlook.Domestic sentiment was further bolstered by the RBI Monetary Policy Committee’s decision to maintain the repo rate at 5.25%, ensuring policy stability.

The Nifty 50 surged nearly 4%, reclaiming 24,000, led by strong gains in auto, realty, and banking.The Nifty 50 opened on a positive note at 23,855.15, driven by favorable global cues. The index extended its gains to an intraday high of 24,025.15, while the day’s low was recorded at 23,828.50.

Buying interest remained intact throughout the session, and the index closed near the day’s high at 23,997.35, registering a robust gain of 3.78%.The recovery from recent lows appears decisive, with the index reclaiming its 21-DMA, indicating short-term strength. The price structure suggests early signs of a pullback rally within a broader corrective phase.

Sustained follow-through buying will be critical to confirm trend reversal.From a momentum perspective, RSI has rebounded sharply to 53.89, moving above the neutral 50 mark, indicating improving bullish momentum after a prolonged weak phase. The indicator shows a positive slope, suggesting increased participation.

Meanwhile, MACD remains in negative territory but is witnessing a bullish crossover, with histogram bars turning positive, signaling early trend reversal cues. However, the crossover is still at a nascent stage, and confirmation through sustained price strength is essential.