Stocks to buy: Three stock recommendations from MarketSmith India for Monday -18 November

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Subscribe to enjoy similar stories. The Indian stock market fell for the sixth successive session on Thursday, 14 November, due to weak global trends, a rise in the dollar index, a weakening rupee, and a sell-off from foreign investors. The Nifty50 index closed at 23,532.70 on Thursday, 0.11% lower than the previous close.

The index formed a bearish candle on a weekly timeframe chart with lower high lower and low price structure. Furthermore, on the daily timeframe chart, it has marginally closed below 200-day moving average (200-DMA) and formed a “doji" candlestick pattern, which indicates uncertainty among buyers and sellers. The Nifty50 has corrected sharply in the past few weeks and is currently trading near its 200-DMA which may act as a key support area.

Hence, 200-DMA, i.e. around 23,550, is a critical level watch in today’s trading session as any pullback in the index may help to bounce back towards 24,000, followed by 24,500 in coming days. On the flipside, sustainable trading below 200-DMA may open a fresh downside window towards 23,000-22,800 levels.

Also Read: Rising put option sales reflect market fears as supply of shares exceed demand Nifty Bank has corrected around 8.3% from its all-time high which was registered at 54,467.35 on 26 September, 2024. Since eight weeks, the index has been in the correction phase with negative bias. Currently, the index is trending 1% above its 200 DMA, and placed around 49,687 which could be retested on any day.