Stocks to buy today: MarketSmith India’s top stock picks for 27 February
Subscribe to enjoy similar stories. Nifty 50 ended flat on Tuesday after a lackluster trading session. After a muted opening at 22,516.45, the index moved higher toward 22,600 in the initial hour.
However, it quickly erased all the gains and traded sideways for the rest of the session, closing almost flat at 22,547. Consequently, the index formed a Doji candle on the daily chart, indicating a fight between bulls and bears. Barring consumer durables, auto and FMCG, all the major sectoral indices closed lower to flat.
The advance-decline ratio was skewed toward decliners, at about 1:2. From a technical perspective, the index closed below its crucial support zone of 22,700–22,800. The 14-day relative strength index (RSI) is trending downward and is currently positioned around 30.
The moving average convergence divergence (MACD) indicator recently witnessed a negative crossover below the zero line. Also read | Trumped: FIIs abandon Asian equities, unnerved by US tariffs, stronger dollar Based on O'Neil's methodology of market direction, we shifted the market status to ‘downtrend’ on Friday, as Nifty breached its recent correction low of 22,725. Looking forward, we will shift the market to ‘rally attempt’ when Nifty closes in the green for the first time or closes in the upper half of the day’s range and stays above that low for three straight sessions.
From there, we would prefer to see a follow-through day before shifting the market back to ‘confirmed uptrend’. The index has breached its crucial support zone of 22,700–22,800. The overall bias of the market remains weak, and immediate support is placed at 22,000–21,800.
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