Top stock picks today: MarketSmith India's stock recommendations for 10 March
Summary
- Two stocks to buy today, 10 March, as recommended by MarketSmith India.
Nifty 50: How the benchmark index performed on 7 March
On Friday, Nifty 50 was range-bound amid a volatile trading session. Taking cues from global markets, the index closed flat after rising for two days. Market action formed a Doji candle with a long upper wick, indicating intraday resistance at the day’s high.
On the weekly chart, the index took support around the 100-week exponential moving average (EMA) and formed a ‘bullish harami’ candlestick with a higher volume than the previous week.
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Among the major sectoral indices, Nifty Realty (-1.19%) and IT (-0.85%) were the biggest losers, while metal and auto gained around 0.25% each. Market breadth remained positive, and the advance-decline ratio settled around 3:2, reflecting positive buying interest in select pockets.
From a technical perspective, the 14-day relative strength index (RSI) bounced back from the oversold region over the past couple of days and is currently positioned around 41. Te moving average convergence divergence (MACD) indicator is trending negatively below the zero line.
Following O'Neil's methodology of market direction, MarketSmith India shifted the market status to ‘rally attempt’ from ‘downtrend’ on Wednesday. From here, we would prefer to see a follow-through day or Nifty scaling a new high before upgrading the status to ‘confirmed uptrend’.
If this occurs, the focus will be on stocks that show the best relative strength with strong accumulation. Stocks that recover the quickest often lead the next run. On the flip side, if Nifty breaches its recent low of 21,965, the market status will revert to ‘downtrend’.
Looking ahead, the ongoing bounce-back may drive the index toward 22,800, followed by 23,000 in the coming few days. On the flip side, immediate support is placed around 22,250–22,200.
How did Nifty Bank perform?
On Friday, Nifty Bank opened on a negative note and remained in negative territory for most of the session. The index ended its three-day winning streak and closed in the red. Despite attempting to recover and move into positive territory, it failed to sustain its gains. In the previous session, the index opened at 48,464, fluctuated within 48,709.05–48,359.35, and eventually closed at 48,497.50.
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On the weekly chart, the index took support around the 100-week moving average (WMA), forming a Doji candlestick pattern in the past week. It gained 152.80 points (+0.32%) over this period.
The 14-day relative strength index (RSI) on the daily chart has slightly bent downward and is currently positioned around 42-43. The moving average convergence divergence (MACD) is trading with a negative crossover and remains below its central line, indicating continued weakness in momentum.
According to O'Neil's methodology of market direction, the market status shifted to ‘rally attempt’ from ‘downtrend’ on Thursday. From here, we would prefer to see a follow-through day before shifting the status to ‘confirmed uptrend’. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run.
Nifty Bank index is trending below all its key moving averages in the range of 48,000–50,000. Moving forward, 49,000 is a key level to watch for as crossing and holding above this level may lead the index toward 50,000–50,500 in the coming days. On the downside, strong support is placed around 48,000–47,900.
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MarketSmith India's top stock recommendations for 10 March
1. ITD Cementation India Ltd
Current market price: ₹535.1 | Buy range: ₹525–540 | Profit goal: ₹590 | Stop loss: ₹510 | Timeframe: 1-2 months
2. Sarda Energy & Minerals Ltd.
Current market price: ₹471.05 | Buy range: ₹465–476 | Profit goal: ₹540 | Stop loss: ₹435 | Timeframe: 2-3 months
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.
