Stocks to buy: Two stock recommendations from MarketSmith India for 8 January

livemint.com:

Subscribe to enjoy similar stories. Nifty 50, India’s benchmark index, closed 92 points higher on Tuesday, ending its two-day losing streak to settle at 23,207.90. The index opened with a gap-up, tracking positive global cues, and traded within a narrow range of 23,637–23,795.

Except for IT, all major sectoral indices ended in the green, with the session forming a doji candle on the daily chart. The advance-decline ratio, however, remained weak, skewing toward decliners at approximately 3:1. Read this | Viral fear, growth blues stalk Street Technically, the Nifty failed to sustain above its 200-day moving average (DMA) and hovers slightly above a key support level—an upward-sloping trendline connecting the lows of 21 November and 31 December 2024.

The 14-day relative strength index (RSI) is trending sideways at around 43, while the moving average convergence/divergence (MACD) remains in negative territory. According to O'Neil's market direction methodology, the Nifty gained over 1.7% on Thursday with higher trading volumes, prompting an upgrade in market condition to a Confirmed Uptrend. However, the status could be downgraded to Uptrend Under Pressure if the distribution day count rises or the Nifty breaches a key support level.

At present, the index has slipped below its 200-DMA but is trading slightly above the critical support level of 23,400. A drop below 23,400 could trigger further downside, potentially pulling the index toward 23,000. On the upside, resistance is expected around the 24,000–24,200 range.