Stocks to buy: Two stock recommendations from MarketSmith India for 31 December

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Subscribe to enjoy similar stories. The Nifty 50, India's benchmark index, continued to struggle in surpassing and sustaining above its 200-day moving average (DMA), remaining range-bound between 23,600 and 23,900. On Monday, the index opened lower at 23,796, climbed to an intraday high of 23,915 in the first half, but faced selling pressure in the latter half, sliding to 23,599 before closing near its day’s low at 23,644.90.

The index declined by 0.71%, forming a bearish candle on the daily chart. Except for Pharma and FMCG, all major sectoral indices ended in the red, with Realty, Auto, Metal, and Banking stocks taking the hardest hits. The advance-decline ratio was skewed toward decliners at approximately 1:3.

Read this | Sebi’s meds do the trick in slowing retail options frenzy. Next dose in January. From a technical perspective, the index has remained below its 200-DMA for six consecutive sessions, trading in a range-bound zone with a negative bias. The 14-day Relative Strength Index (RSI) is trending flat with a negative bias at around 38, while the Moving Average Convergence/Divergence (MACD) shows a negative crossover.

Under O'Neil's methodology of market direction, the index is currently in a “Rally Attempt" phase, which begins on the third day after the index closes higher from its most recent bottom following a Correction (or Downtrend). The Nifty is hovering below its 200-DMA, with strong technical support at the 50-week moving average (WMA) around 23,600–23,400. A sustained break below 23,600 could open the door for further downside to 23,400.

On the upside, the index faces significant resistance at 23,900. A decisive breakout above this level could propel the index toward 24,200 in the near term. Nifty Bank