Best stock recommendations today: MarketSmith India's stock picks for 8 April

Two stock recommendations by MarketSmith India:

Buy: Godrej Consumer Products (current price: ₹1,160)

• Why it’s recommended: Defensive sector, strong brand portfolio, rural & tier-2/3 market penetration
• Key metrics: P/E: 61.24, 52-week high: ₹ 1,542, volume: ₹ 51.14 cr.
• Technical analysis: Possible horizontal trendline breakout
• Risk factors: High dependency on the insecticides segment, emerging market volatility
• Buy at: ₹ 1,160
• Target price: ₹ 1,350 in 3 months
• Stop loss: ₹ 1,080

Buy: Hindustan Unilever Ltd (current price: ₹ 2,249)

• Why it’s recommended: Strong brand portfolio, extensive distribution network, domestic consumption-facing sector
• Key metrics: P/E: 50.85, 52-week high: ₹ 3,035, volume: ₹ 34.35 cr.
• Technical analysis: Possible horizontal trendline breakout and 50-DMA retake
• Risk factors: Raw material price volatility, currency, and geopolitical risks
• Buy at: ₹ 2,249
• Target price: ₹ 2,500 in 3 months
• Stop loss: ₹ 2,150

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Nifty 50: How the benchmark index performed on Monday

The index declined 3.24% on Monday, forming a bearish setup on the daily chart, following a sharp gap-down opening. It opened nearly 1,150 points lower but recovered about 400 points from the day’s low. All sectoral and broader market indices closed in the red. The market breadth was extremely weak, with the advance-decline ratio heavily favoring decliners at 1:8.

Technically, the index is now trading below all its key moving averages on the daily chart. It breached the 100-week moving average (WMA) during intraday trades but closed near 22,150. Both RSI and MACD indicators are showing a downward trend on the daily and weekly charts, signaling ongoing weakness. The daily RSI is currently near 35, and the MACD remains below the central line.

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

The index recovered nearly 400 points from the day’s low and closed above 22,000 and the 100-week moving average (22,150). Going forward, the 100-WMA will act as a key support. A sustained move below it may trigger further downside toward the 21,000–22,000 zone, while holding above it could lead to a short-term rebound toward 22,700–22,800.

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How did the Nifty Bank perform yesterday?

Nifty Bank commenced the session with a gap-down opening and remained under sustained selling pressure throughout the day. After a gap-down opening, the index took support around its 50-DMA and recovered around 700 points from the day's low. It declined 1,642.60 points (-3.19%) sharply on Monday, forming a bearish candle on the daily chart, characterized by a lower-high and lower-low price structure. Today, the index opened at 49,336.10, recorded an intraday high of 50,426.25, a low of 49,156.90, and eventually settled at 49,860.10.

The relative strength index (RSI) has turned downward with a negative slope, currently positioned at 47.19, indicating a shift toward bearish momentum. Meanwhile, the moving average convergence divergence (MACD) is nearing a potential negative crossover, reflecting growing selling pressure.

According to O'Neil’s methodology for assessing market direction, the current market status for Nifty Bank has been downgraded to an "Uptrend Under Pressure" from a "Confirmed Uptrend." This shift reflects growing distribution signals and increasing volatility, suggesting caution as the index shows signs of weakening momentum.

This major sectoral index has been trading within a broad range of 48,000–52,000 over the past three months, with all key moving averages also lying within this zone. From a medium-term perspective, the index is likely to continue moving within this range. In the short term, immediate support is around 49,300, while resistance is seen near 50,700.

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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)

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 certifiedexperts before making any investment decisions.