Stocks to buy: Two stock recommendations from MarketSmith India for 1 January

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Subscribe to enjoy similar stories. Nifty50 ended flat on the last day of 2024, a year in which Indian equity markets experienced a roller-coaster ride and gained more than 8.75%. The index had a strong first half of the year, driven by strong earnings and macroeconomic indicators, and hit a new all-time high of 26,277.

However, in the second half of the year, especially in Q4 (October to December) the index gave up some of its gains. Taking cues from global markets, the index had a gap-down opening at 23,560 on Tuesday and fell to 23,460 in the first hour of trading. However, it then made a smart comeback, supported by oil and gas, pharma, metal, and FMCG stocks, and closed at 23,644.

The advance-decline ratio was inclined toward advancers and settled around 2:1. Technically, the index remained traded below the 200-DMA and traded around 1% below its 200-DMA. The momentum indicator, 14-day relative strength index (RSI), is trending in the flat zone with a negative bias and is placed around 37 on the daily chart, along with a negative crossover on moving average convergence/divergence (MACD).

Also read: Motown’s 2025 growth hinges on rural demand According to O'Neil's methodology of market direction, the current market status is a “rally attempt". A rally attempt begins on the third day when the index closes higher off the most recent bottom after being in a correction. The index is hovering below its 200-DMA and traded in the range of 23,600–23,900 on Tuesday.