Stocks to buy on 12 February: MarketSmith India recommends two stocks for today
Subscribe to enjoy similar stories. Nifty50 continued its losing streak for a fifth consecutive session on Tuesday, closing 310 points lower at 23,071.80 amid US trade tensions, continued FII selling, and weak Q3FY25 earnings. The index had a muted start to the session, opening at 23,383.55, but saw continued selling pressure as the day progressed.
As a result, Nifty has formed five consecutive bearish candles with a lower-high and lower-low price structure on the daily chart. All major sectoral indices closed in the negative. Realty (-3.07%), auto (-2.33%) and FMCG (-1.94%) lost the most.
The advance-decline ratio was heavily inclined toward decliners. Also read: Eicher Motors bet on volume over margin dampens confidence From a technical perspective, the index breached its 21-day moving average (DMA) and fell below 23,000 intraday. The index is now trading below all its key moving averages, with a negative bias.
The 14-day relative strength index (RSI) is currently declining, positioned at about 41. The moving average convergence divergence (MACD) indicator has shown a positive crossover but remains below its central line, signaling a cautious market outlook. Based on O'Neil's methodology of market direction, we downgraded the market status to an ‘uptrend under pressure’ yesterday as Nifty breached its 21-DMA and the distribution day count increased to two.
Moving forward, we may change the status to ‘downtrend’ if the distribution day count increases or if Nifty fails to hold above the correction low of 22,787. On the flip side, the market status will be changed back to ‘confirmed uptrend’ if Nifty retakes 23,807.30 (its recent rally high). Looking ahead, the 23,000–22,800 range may serve as an immediate support zone.
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