Best stock recommendations for 27 March by MarketSmith India

2. Varun Beverages Ltd: Current market price: ₹528 | Buy range: ₹510–532 | Profit goal: ₹615 | Stop loss: ₹488 | Timeframe: 2–3 months.

Nifty 50: How the benchmark index performed on 26 March

India’s benchmark index, Nifty 50, declined 0.77% on 26 March, Wednesday, as investors booked profits ahead of key events, including the March-end closing pressure, the US tariff deadline, and the Reserve Bank of India's policy announcement.

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After a muted opening, the index trended lower throughout the session, closing at the day’s lowest point. This price action formed an “Evening Star" candlestick pattern on the daily chart, signaling a potential reversal.

However, trading volume was lower than in the previous session. On the sectoral front, all indices ended lower except Auto, while market breadth remained weak, with an advance-decline ratio of 1:5, indicating a broad-based selloff.

Nifty technical indicators

The Nifty 50 faced resistance near its 50-week moving average (50-WMA) at 23,850 and saw profit booking, closing slightly below the 100-day moving average (100-DMA). The 14-day Relative Strength Index (RSI) edged lower to 65, indicating weakening momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) showed a positive crossover but remained below the central line, suggesting that bullish momentum is yet to gain strength.

Key levels

Following O’Neil methodology, MarketSmith India had upgraded the market status to a ‘Confirmed Uptrend’ from a ‘Rally Attempt’ after a follow-through day on 18 March, when Nifty surged 1.5% on higher volume, signaling renewed strength. However, if the distribution day count rises or Nifty breaches key support levels, the market status could be downgraded to ‘Uptrend Under Pressure’, reflecting increased risk.

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The index extended its profit-booking momentum into Wednesday, struggling to hold 23,850 resistance. In the near term, immediate support lies at 23,400, while a decisive breakout above 23,850 could trigger fresh upside. A breach below support, however, could lead to further weakness.

Nifty Bank's performance on 26 March

The Nifty Bank index opened on a positive note on 26 March, Wednesday, but faced profit booking at higher levels, closing in negative territory for the second consecutive session. It formed a bearish candle on the daily chart, characterized by a lower-high and lower-low structure, indicating near-term weakness.

The index opened at 51,640.05, hit an intraday high of 51,875.80, and slipped to a low of 51,069.15, before closing at 51,209. It is currently trading near its 200-DMA, a key support zone around 51,000–50,900.

Technical indicators

The RSI has edged lower but remains in the overbought zone at 68, suggesting that bullish momentum is still intact. The MACD has maintained a positive crossover and continues to trend above the central line, reinforcing underlying bullish strength.

Key levels

As per O’Neil methodology, the market status shifted from a Downtrend to a Rally Attempt on 17 March. A follow-through day would be required to confirm an uptrend.

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For now, immediate support lies at 51,000–50,900 (200-DMA). A breakdown below this range could trigger increased selling pressure and heightened volatility. However, if the index rebounds from current levels, it could head toward 52,300–52,500 in the near term.

About MarketSmith India:

Trade name: William O'Neil India Pvt. Ltd.

Sebi Registered Research Analyst Registration No.: INH000015543

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.