Stocks to buy: Two stock recommendations from MarketSmith India for Friday-22 November
Subscribe to enjoy similar stories. The benchmark index, Nifty50, continued to slide due to rising geopolitical concerns and news regarding Adani Group stocks. Adani stocks were in the limelight following bribery allegations from the US Department of Justice and Securities and Exchange Commission against Gautam Adani and other group executives.
The index started the session with a gap-down opening at 23,488.45, continued to slide lower, and made a new low at 23,263.15. However, after touching an intraday low, the index continued to trade in a range above 23,300 throughout the session and closed at 23,349.90. Today, the market action formed a bearish candle with a lower-high and lower-low price structure on the daily chart, along with a comparitive higher volume.
On the daily chart, the momentum indicator, RSI, is trending downward in an oversold trajectory and is currently placed around 28, along with a negative crossover on MACD below the central line. The index has protected the 50-WMA on a closing basis. Hence, moving forward, the 50-WMA and the previous day’s low will be the key levels to watch for immediate strong support.
Furthermore, a sustainable fall below the previous day’s low may open a fresh downside window toward 23,000, followed by 22,700 in the coming days. However, on the flip side, some bounce back cannot be denied from the current level, and in case of bounce back, the index may retest 23,600, followed by 26,800. As per O’Neil methodology of market direction, this sectoral index is currently in a “downtrend", having made a new low of 23,263.15.
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