Stocks to buy: Two stock recommendations from MarketSmith India for 3 January

livemint.com:

Subscribe to enjoy similar stories. Nifty50 reclaimed 24,150 on the weekly F&O expiry sessions and gained around 446 points on Thursday. The index started the session on a muted note at 23,783.

As the day progressed, it drew buying interest and closed near the day’s high at 24,188. The rally extended across sectors, with significant interest in auto, IT and BFSI stocks, driven by strong business updates and earnings optimism for Q3FY25. The broader market delivered a strong performance, with the advance-decline ratio favouring advancing stocks and settling at 2:1.

Also read: A sombre December manufacturing PMI curbs enthusiasm From a technical perspective, the index reclaimed its 50- and 200-day moving average (DMA) in a single move. The 14-day relative strength index (RSI) is trending upward, positioned around 52 on the daily chart, while the moving average convergence/divergence (MACD) indicator is on the verge of a positive crossover. According to O'Neil's methodology of market direction, Nifty staged a follow-through day as it advanced more than 1.5% on higher volume than the previous day.

Hence, we are upgrading the market status to “confirmed uptrend". Also read: At Maruti Suzuki, small cars are back in the driver’s seat The index reclaimed its 200-DMA and the psychologically important 24,000 level. Sustainable trading above this is likely to drive the index toward 24,450–24,500, followed by 24,800 in the coming sessions.

But failure to hold above 24,000–23,900 may push the index to a broader range of 23,400–24,000. Nifty Bank opened on a positive note and traded in a volatile manner in the first hour. Later, the index saw buying interest at lower levels, which helped it to close on a higher note.