
Stocks to buy: Two stock recommendations from MarketSmith India for 13 January
Subscribe to enjoy similar stories. India's benchmark index, Nifty 50, extended its losing streak to three consecutive sessions, closing at 23,431.50. The index opened the session on a muted note at 23,551.90, tracking global market cues, and remained range-bound for most of the day.
However, selling pressure in the final hour dragged it closer to 23,400. On the daily chart, Nifty formed a bearish candle with a lower-high and lower-low price structure. Sector-wise, IT was the only major index to end in the green, while others closed lower.
The weekly chart also reflected weakness, with the index forming a bearish candle featuring a lower-high and lower-low structure. Importantly, it closed below the 50-week moving average (WMA). The market breadth was notably weak, with the advance-decline ratio heavily skewed toward decliners, settling at approximately 1:5.
From a technical perspective, the Nifty 50 failed to sustain above its 50-week moving average and breached a critical support level today—an upward-sloping trendline connecting the lows of 21 November and 31 December 2024. The 14-day Relative Strength Index (RSI) is trending downward, currently positioned around 38 on the daily chart, while the Moving Average Convergence/Divergence (MACD) indicator continues to signal negativity. According to O'Neil's market direction methodology, the Nifty gained over 1.7% with higher volumes last Thursday, prompting an upgrade of the market condition to a Confirmed Uptrend.
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