Stocks to buy: Two stock recommendations from MarketSmith India for 16 December
Subscribe to enjoy similar stories. The Nifty 50, India’s benchmark index, saw volatile trading on 13 December as it retested its breakout level—the downward-sloping trendline connecting the highs of 6 November and 27 November. Following a subdued opening, the index tumbled sharply to an intraday low of 24,180 during the first half of the session.
However, a strong rebound led by FMCG, BFSI, and Bharti Airtel stocks helped the index recover all its losses, closing 220 points higher at 24,768. Despite the recovery, the advance-decline ratio painted a bearish picture, with two stocks declining for every gainer. Read this | Market sees sharpest swing in 6 months before closing in green On the weekly chart, the Nifty 50 formed a bullish candle with a lower shadow, signalling support near the 24,200 level.
The Nifty 50 index has crossed its key resistance at the 100-day moving average (100-DMA) and retraced 50% of its recent decline, signaling strength. The 14-period Relative Strength Index (RSI) is trending upward, currently around 60, reflecting improving momentum. Additionally, the Moving Average Convergence/Divergence (MACD) indicator has displayed a positive crossover and hovers near its central line, further supporting the bullish narrative.
For the index to extend its rally, it must sustain above 24,700, paving the way for an upward move toward the 25,000–25,200 range in the coming days. However, failure to hold above this critical level could lead to continued volatility, keeping the index range-bound between 24,700 and 24,200. 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
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