Stocks to buy: Two stock recommendations from MarketSmith India for Thursday-28 November
Subscribe to enjoy similar stories. The Nifty 50, the Indian stock market's benchmark index, has continued to consolidate within the range of 24,125–24,350 points for the last three trading sessions. The session on Wednesday started on a muted note at 24,204 and saw a sideways movement during the first half.
However, post-noon buying in auto, metal, and BFSI stocks lifted the index to close above 24,250 points. Once again, the index was traded within the previous session, and a bullish candle was formed on the daily chart. It continues to hold above 21-EMA, currently placed around 24,100, which may act as a crucial short-term support zone for today's trading session.
The 14-period Relative Strength Index (RSI) remains sideways and is currently placed at 52. Another technical indicator, moving average convergence/divergence (MACD), is trending positive. Currently, the Nifty 50 has support around 24,100 (i.e., 21-EMA).
A fall below this level may turn the trend negative toward 24,000. However, on the upside the index is facing resistance in the range of 24,350–24,400. A sustainable close above this level may move the index toward 24,550–24,700.
According to O'Neil's methodology of market direction, the current market status is in a “Rally Attempt". A Rally Attempt begins on the third day when the index closes higher off the most recent bottom after being in a correction (also known as downtrend). This major sectoral index opened on a muted note on Wednesday and traded sideways for a couple of hours.
However, the index witnessed some buying interest, which brought the index to positive territory. The market action during the day formed a bullish candle on the daily chart. The momentum indicator RSI is trending sideways and
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