Best stock recommendations today: MarketSmith India's stock picks for 9 April

Best stock recommendations today: Two stock picks by MarketSmith India:

Buy: Rainbow Children's Medicare Ltd (current price: ₹1,160)

• Why it’s recommended: Niche focus on pediatric and perinatal care, pan-india expansion strategy
• Key metrics: P/E: 59.79, 52-week high: ₹ 1,710, volume: ₹ 10.62 crore.
• Technical analysis: Gap-up with 100-DMA retake
• Risk factors: Dependence on key specialists, geographically concentrated in South India.
• Buy at: ₹ 1,480
• Target price: ₹ 1,750 in three months
• Stop loss: ₹ 1,360

Buy: ITC Ltd (current price: ₹ 412.55)

• Why it’s recommended: Dominant position in cigarette business, paper, and packaging segment
• Key metrics: P/E: 25.14, 52-week high: ₹ 499, volume: ₹ 186.01 crore.
• Technical analysis: Possible tight-range breakout
• Risk factors: Intense FMCG competition, slow growth in the core segment
• Buy at: ₹ 412.55
• Target price: ₹ 450 in three months
• Stop loss: ₹ 397

Also Read: Can India dodge Trump’s trade tariff bullet? Depends on the sector and trade pact talks

How the Nifty performed on Tuesday

The index rebounded and rose 1.69%, closing above 22,500. Following positive cues from global markets, it opened with a gap-up at 22,447 and traded within a broad range of 22,270–22,700 throughout the session. This price action led to the formation of a bullish candle on the daily chart. All sectoral and broader market indices ended in positive territory. Market breadth was strong, with the advance-decline ratio at 7:1, indicating a broad-based participation in the rally.

Technically, the index is still trading below all its key moving averages on the daily chart. It managed to retake its 100-week moving average (WMA). The RSI and MACD indicators are showing a downward trend on the daily and weekly charts, signalling ongoing weakness. The daily RSI is near 42, and the MACD remains below the central line.

Following O'Neil's methodology of market direction, MarketSmith India has downgraded the market status to a 'Downtrend'.

The index took support around the 100-week moving average and gained on Tuesday. Going forward, the 100-WMA will act as a key support while immediate upside resistance is placed in the range of 22,700–22,800, followed by 23,000.

Also Read: Mint Explainer: Global and Indian markets crack under Trump’s tariff shock—what this means for investors

How did Nifty Bank perform?

Nifty Bank index started the session with a gap-up opening and maintained positive momentum throughout the day. It formed a bullish candle, reflecting a higher-high and higher-low price structure on the daily chart, and reclaimed its 100 DMA, indicating strong buying interest in this sector. The index opened at 50,388.55, reached an intraday high of 50,793.70, a low of 50,030, and closed at 50,511.

The relative strength index (RSI) has shown a slight upward movement, currently at 52.58. However, the moving average convergence divergence (MACD) has exhibited a negative crossover during today’s trading session, indicating an increase in selling pressure.

According to O'Neil’s methodology for evaluating market direction, the current market status is in an "Uptrend Under Pressure." This shift indicates an increase in distribution signals and heightened volatility, signaling caution as the index exhibits signs of weakening momentum.

The major sectoral index has notably reclaimed its 100-day moving average (DMA), currently positioned around 50,300 and trading approximately 200 points above this. A sustained rally above this level could generate increased buying interest, thereby propelling the index toward the 51,000–51,500 range. Conversely, a breach below the 100 DMA could introduce heightened volatility, potentially leading to more pronounced market fluctuations within this sector.

Additionally, the index may experience a trigger from the upcoming RBI policy announcement scheduled for the next day, which could significantly influence market sentiment and price movement.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market.

Trade name: William O'Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543)"

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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."