Markets
Two stock recommendations for today: MarketSmith India's top picks for 26 March
Summary
- Expert stock picks: MarketSmith India recommends two stocks to buy on 26 March.
How Nifty 50 performed on 25 March
Nifty 50 snapped its winning streak and closed flat at 23,668 on Tuesday. Taking cues from global markets, the index opened on a positive note but faced resistance around 23,850, which aligns with the 50-week moving average (WMA). As a result, it erased all its gains within the first couple of hours. Following this, the index moved sideways in a range.
This price action led to the formation of another bullish candle on the daily chart, characterised by a higher high and a higher low structure. All indices closed lower except for IT and financial. Meanwhile, market breadth remained weak, with the advance-decline ratio at 1:5.
From a technical standpoint the index closed above the 100-day moving average (DMA) as well as a 38.2% retracement level of the entire decline from the September 2024 highs to the recent March low.
However, the index faced resistance around its 50-WMA and saw profit-booking. The 14-day RSI is trending upward and is currently positioned at 71. Although the MACD has exhibited a positive crossover, it remains below the central line.
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Following the O'Neil methodology of market direction, MarketSmith India has upgraded the market status to ‘confirmed uptrend’ from ‘rally attempt’ after witnessing a follow-through day. On 18 March, Nifty advanced about 1.5% on higher d/d volume, signaling renewed market strength. Similarly, Sensex rose around 1.53% on higher d/d volume.
However, if the distribution day count increases or Nifty breaches its key support levels, we may downgrade the market status to 'uptrend under pressure' to reflect heightened risk.
From here, 23,850 is a critical level to watch as trading below this may cause the index to remain volatile between 23,800 and 23,400. However, crossing and holding above this level may push the index toward 24,100–24,200 range in the coming days.
How did Nifty Bank perform?
Nifty Bank opened on a positive note but soon experienced a pullback as profit-taking emerged at higher levels. The index formed a bearish candle on the daily chart, marking a pause after eight consecutive days of gains. However, it continues to trade comfortably above all key moving averages. The index opened at 51,874.20, moved between 52,063.95 and 51,429.60, and closed at 51,607.95.
The RSI has turned down slightly but remains in the overbought zone, indicating that the index is still in a strong bullish phase. The MACD shows a positive crossover and is trending above its central line, suggesting sustained bullish momentum.
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Based on O'Neil’s method for assessing market direction, the market’s status shifted from ‘downtrend’ to ‘rally attempt’ on 17 March. From here, we would prefer to see a follow-through day before shifting the market status to ‘confirmed uptrend’.
At this point, the index successfully reclaimed its 200-DMA on Monday and is currently trading comfortably above it, showing no signs of weakness. This suggests a structurally bullish trend. If the prevailing momentum continues, the index is likely to target 52,300–52,500 in the coming days. On the downside, immediate support is located around the 200-DMA, near 50,985.
MarketSmith India's top stock recommendations for 26 March
SBI Cards and Payment Services
Current market price: ₹859.50 | Buy range: ₹825-870 | Profit goal: ₹1,010 | Stop loss: ₹790 | Timeframe: 2-3 months
Coforge
Current market price: ₹7,958.20 | Buy range: ₹7,800-8,000 | Profit goal: ₹8,890 | Stop loss: ₹7,490 | Timeframe: 2-3 months
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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.
