
Stocks to buy today: Two stocks recommendations by MarketSmith India for 6 March
Subscribe to enjoy similar stories. India’s benchmark stock market index, Nifty 50, ended its 10-day losing streak with a broad-based rebound, closing up 1.2% at 22,337. All sectoral indices posted gains, signalling widespread buying interest.
Read this | Chasing bets, dodging risks: Why Chris Wood of Jefferies is bargain hunting in India with a cautionary eye After a subdued start at 22,073, the index maintained an upward trajectory throughout the session, forming a bullish candlestick pattern on the daily chart—an early signal of potential trend reversal. Market breadth was notably strong, with an 8:1 advance-decline ratio, highlighting a decisive shift in sentiment. Nifty 50 held firm above the key psychological level of 22,000, climbing toward 22,400 before settling just below.
The 14-day Relative Strength Index (RSI) rebounded from the oversold region, now trending upward around 34, while the moving average convergence divergence (MACD) remains negative below the zero line, indicating lingering caution. Under O’Neil’s market direction methodology, the index entered a Downtrend from a Rally Attempt on 21 February, after breaching its recent correction low of 22,725. For the market to shift back to a Rally Attempt, Nifty must either close in positive territory or in the upper half of the day's range and hold above its latest low for three consecutive sessions.
A follow-through day is required to confirm a return to an uptrend. The index faces immediate resistance at 22,400–22,500. A sustained breakout above this range could open the door for further upside toward 22,700–22,800 in the near term.
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