Stocks to buy: Two stock recommendations from MarketSmith India for Friday - 24 January
Subscribe to enjoy similar stories. Nifty50, India's benchmark index, ended higher on Thursday at 23,205.35 in a range-bound session. The index started the session on a muted note at 23,128.30 and traded sideways within a range-bound zone of 23,270.80–23,090.65, supported by IT, pharma, and auto stocks.
The index continued to trade in a consolidation range of 22,976–23,426. The broader market snapped its two-day losing streak as the advance-decline ratio was inclined toward advancers and settled around 3:2. From a technical perspective, the index is trading below all its key moving averages and technical support levels.
The 14-day relative strength index (RSI) slope is trending sideways and is currently positioned around 41. Another technical indicator, the moving average convergence/divergence (MACD), is still trending negative below its central line. According to O'Neil's methodology of market direction, we have shifted the market status to a ‘downtrend’ as Nifty breached its recent correction low of 23,047.
Looking forward, we will shift the market to a ‘rally attempt’ when Nifty closes in the green for the first time or closes in the upper half of the day's range and stays above that low for three straight sessions. From there, we would prefer to see a follow-through day before shifting the market back to a ‘confirmed uptrend’. Also Read: Nifty options activity hints at positive market close today Technically, the overall market sentiment has been negative for the past couple of weeks.
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