Stocks to buy: Two stock recommendations from MarketSmith India for 12 December

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Subscribe to enjoy similar stories. The Nifty50 continued to consolidate around its 50- and 100-day moving average (DMA) and traded in a narrow range for a fourth consecutive day. On Wednesday the index ended 0.13% higher in a lackluster trading session and formed a doji candle with a higher-high and higher-low price structure, indicating indecisiveness among buyers and sellers.

It continued to trade in the range of 24,584–24,691 and closed 32 points higher at 24,642. The advance decline ratio was also flat at 1:1. Technically, Nifty has retraced 50% of its recent fall and is currently facing resistance around its 100-DMA, placed around 24,700.

This level may be a crucial factor in today’s trading session. The momentum indicator, 14-period relative strength index (RSI), was trading in an upward direction and is currently placed around 58. Another technical indicator, the moving average convergence/divergence (MACD), is trending with a positive crossover and is currently placed above the central line.

Also read: Pipeline expansion, tariff revision could be game-changers for Gail The ongoing trend indicates a bullish sentiment in the market. However, the index faces resistance around its 100-DMA (i.e., around 24,700). Fresh bullish calls can only be taken if the index crosses and holds above this.

Sustainable trading above 24,700 may open an upside window toward 25,000-25,200. However, failure to cross and hold above it may result in volatility. According to O'Neil's methodology of market direction, the market’s current status is a ‘rally attempt’.