Stocks to buy: Two stock recommendations from MarketSmith India for 28 January
Subscribe to enjoy similar stories. The Nifty 50, India's benchmark index, extended its losing streak for a second consecutive session on Monday, 27 January, closing below 22,829.15. The index opened the day with a gap-down at 22,940 and remained range-bound between 22,786 and 23,007.
The broad-based selloff was driven by uncertainty surrounding US trade policy and persistent selling by foreign institutional investors (FIIs). All major sectoral indices ended in the red, with the advance-decline ratio heavily tilted towards decliners, settling at approximately 1:10. On the technical front, the index breached its 10-session consolidation range with the gap-down opening, closing below the key 23,000 mark—the lower boundary of the consolidation zone.
The 14-day Relative Strength Index (RSI) continued its bearish trajectory, currently hovering around 34. Additionally, the Moving Average Convergence Divergence (MACD) indicator remains negative, trending below its central line. Read this | Market may hit a pre-budget bottom at 22,800 points According to O'Neil's methodology of market direction, today, we shifted the market status to a Downtrend, as Nifty breached its recent correction low of 22,976.
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. The market sentiment has remained broadly negative over the past few weeks.
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