Best stock recommendations for 28 March by MarketSmith India

Best stocks to buy today, MarketSmith India's recommendations for 28 March:

1. Gujarat Fluorochemicals Ltd: Current market price: ₹ 4,004 | Buy range: ₹ 3,960-4,040 | Profit goal: ₹4,850 | Stop loss: ₹3,750 | Timeframe: 2-3 months

2. Trent Ltd: Current market price: ₹ 5,415 | Buy range: ₹5,340 -5,440 | Profit goal: ₹6,100 | Stop loss: ₹ 5,040 | Timeframe: 2-3 months

Nifty 50: How the benchmark index performed on 27 March

India’s benchmark index, the Nifty 50, opened lower on Thursday but rebounded within the first hour of trading, closing 0.45% higher. Despite this recovery, it formed a green candle with a "lower high and lower low" price structure on the daily chart, reflecting continued market caution ahead of the fiscal year-end, the US tariff deadline, and the Reserve Bank of India policy announcement next week.

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Most sectoral indices ended in positive territory, except Auto (-1.04%) and Pharma (-0.40%). PSU, Energy, and FMCG stocks outperformed, while overall market breadth remained neutral, with an advance-decline ratio of 1:1.

Technical indicators

The Nifty encountered resistance around its 50-week moving average (50-WMA) on Tuesday, leading to a sideways trading phase. On Thursday, it found support at its 100-DMA and bounced back from the day’s low. The 14-day Relative Strength Index (RSI) remains in bullish territory at 67, supported by a positive MACD crossover, signaling strong momentum.

According to MarketSmith India, the market status has been upgraded to a 'Confirmed Uptrend' from a 'Rally Attempt' following a follow-through day on 18 March, when the Nifty gained around 1.5% on higher volume than the previous session. Sensex also surged 1.53% on 18 March under similar conditions.

However, if distribution days increase or the Nifty breaks key support levels, the market could be downgraded to 'Uptrend Under Pressure,' signaling heightened risk.

Key levels

The index remains range-bound, facing resistance at 23,850 (50-WMA) and immediate support at 23,400. A decisive breakout above or breakdown below these levels will likely set the next directional move.

Nifty Bank's performance on 27 March

The Nifty Bank index opened on a weak note but quickly rebounded from the day’s low, finding support at its 200-DMA. It turned positive within the first hour of trade, forming a bullish candle with a "lower high and lower low" price structure on the daily chart.

The index opened at 51,084.70, fluctuated between a high of 51,714.35 and a low of 51,050.85, before closing at 51,575.85. Strong buying interest in stocks like HDFC Bank, SBI, ICICI Bank, and Bank of Baroda lifted market sentiment.

The RSI edged higher to 70, signaling that the index remains in a strong bullish phase. Additionally, the MACD has confirmed positive momentum with a bullish crossover, trading above its signal line.

According to O'Neil’s methodology for evaluating market direction, Nifty Bank remains in a Confirmed Uptrend. However, if the distribution day count rises or the index breaks key support levels, the market status could be downgraded to Uptrend Under Pressure, reflecting increased risk.

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The index has demonstrated resilience by bouncing off its 200-DMA. If it sustains above this level, it could potentially rise toward the 52,300–52,500 range in the coming days. On the downside, key support is placed around 51,000–50,900 (its 200-DMA).

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.