Stocks to buy: Two stock recommendations from MarketSmith India for 22 January
Subscribe to enjoy similar stories. Nifty 50, India’s benchmark index, closed lower at 23,024.65 after a volatile trading session. The index opened at 23,421.65 but remained in the red for most of the day.
Selling pressure escalated in the final hour as investors reacted cautiously to US President Donald Trump’s tariff decisions and disappointing Q3 earnings, which dragged the index to multi-month lows. The day’s market movement erased gains from the previous five sessions, forming a large bearish marubozu candlestick pattern on the daily chart. All major sectoral indices closed in the red, and the broader market experienced a sharp correction.
The advance-decline ratio favoured decliners, settling at around 1:3. Read this | Tepid Q3 outlook spells more pain for India Inc. earnings From a technical perspective, Nifty is trading below all its key moving averages and support levels.
The 14-day relative strength index (RSI) is on a downward trajectory, currently at 35, while the moving average convergence/divergence (MACD) remains negative, trading below its central line. Based on O'Neil's methodology for market direction, we have downgraded the market status to a Downtrend after Nifty breached its recent correction low of 23,047. Going forward, we will shift the market status to a Rally Attempt if Nifty closes in the green for the first time, or closes in the upper half of the day’s range and holds above that low for three consecutive sessions.
At that point, we would look for a follow-through day before returning to a Confirmed Uptrend. Currently, the index is trading below all its key moving averages, coupled with negative market sentiment. On the downside, immediate support is at 23,000, which is a crucial level to
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