10 hours Ago
How the benchmark index performed on 11 March India's benchmark index, Nifty 50, stayed strong despite the global market concerns and in Tuesday's trading session. Taking cues from the global market, the indices opened with a gap down at 22,345 after recession fears triggered a sell-off in the US and Asian markets. However, the index managed to pare all losses and closed near the day’s high at 22,498.
As a result, the index formed a bullish candle with a lower-high and lower-low price structure on the daily chart. Market breadth remained weak, with the advance-decline ratio settling at approximately 1:2. Among sectoral indices, Bank Nifty, IT, Auto, and FMCG closed in negative territory.
Nifty Realty, PSE, Financials, and Metal gained the most. From a technical standpoint, the 14-day relative strength index (RSI) remains in the bearish zone, with its slope turning sideways and currently positioned around 41-42. Additionally, the moving average convergence divergence (MACD) has exhibited a positive crossover; it continues to trend below the central line.
Following O'Neil's methodology of market direction, MarketSmith India shifted the market status to a ‘rally attempt’ from a ‘downtrend’ last Thursday. From here, we would prefer to see a follow-through day or Nifty scaling a new high before upgrading the market to a ‘confirmed uptrend’. On the flip side, if Nifty breaches its recent low of 47,841.
30, the market status will revert to a ‘downtrend’. Looking ahead, the 21-EMA is a critical level to monitor which is currently placed around 22,670. A sustained move above this level could pave the way for an upward trajectory toward 22,850–23,000 in the coming day(s).
However, failure to surpass and maintain above this threshold may lead to continued volatility. On the flip side, downside support is placed around 22,300. How did Nifty Bank perform? On Tuesday, Nifty Bank opened on a negative note and remained weak throughout the session.
The index maintained a bearish bias, forming a lower-high and lower-low price structure on the daily chart, indicating persistent selling pressure. In the previous session, it opened at 47,874.80, traded within a range of 48,029.
05–47,702.90, and closed at 47,853.95.
On the daily chart, the 14-day relative strength index (RSI) is trending in a negative trajectory in a downward direction, which is currently positioned around 35–36. Meanwhile, the moving average convergence divergence (MACD) is also trading with a negative crossover and remains below its central line, indicating continued weakness in momentum. Following O'Neil's methodology of market direction, we shifted the market status to a ‘downtrend’ yesterday as Nifty Bank breached its recent correction low of 47,844.
Looking ahead, the sectoral trend status will be shifted to a ‘rally attempt’ once Nifty Bank closes in the green or in the upper half of the day's range and sustains above that low for three consecutive sessions. A follow-through day would then be required to confirm a transition back to an ‘uptrend’. This major sectoral index is trending below all its key moving averages with a negative bias and breached its recent correction low, indicating fresh weakness in the trend.
From now onwards, 48,000-47,800 is a key level to watch as sustainable trading below these levels may open a fresh downside window toward 46,000. MarketSmith India's top stock recommendations for 12 March Current market price: 4,995.45 | Buy range: 4,850–5,050 | Profit goal: 6,200 | Stop loss: 4,650| Timeframe: 1–2 months Current market price: 379.
05 | Buy range: 370–382 | Profit goal: 430 | Stop loss: 349 | Timeframe: 1–2 months.
