Top stock picks for today: MarketSmith India's stock recommendations for 19 March

ITC Hotels Ltd

Current market price: ₹178.88 | Buy range: ₹175–180 | Profit goal: ₹220 | Stop loss: ₹163| Timeframe: 2–3 months

Godrej Agrovet Ltd

Current market price: ₹ 767.05 | Buy range: ₹ 750–775 | Profit goal: 895 | Stop loss: ₹ 710| Timeframe: 2–3 months

How the benchmark index performed on Tuesday:

India's benchmark index, Nifty 50, ended on a strong note above 22,800. The index started the day on a gap-up opening at 22,662, taking strong cues from the global market. After trading in a narrow range for the last seven trading sessions, the index witnessed a strong upside breakout. As a result, it formed a large bullish candle on the daily chart. Among the sectoral indices, all the major indices closed positive. Nifty Realty, Consumer Durables, Auto, and PSU Banks gained the most. Market breadth remained strong, with the advance-decline ratio settling at approximately 5:1.

From a technical standpoint, the index managed to close above the 21-DMA and 22,800, which had been a strong resistance. The 14-day relative strength index (RSI) is trending upward and is currently positioned at 54. Additionally, the moving average convergence divergence (MACD) has exhibited a positive crossover. It continues to trend below the central line.

Following O'Neil's methodology of market direction, MarketSmith India has upgraded the market status to a 'Confirmed Uptrend' from a 'Rally Attempt' after witnessing a follow-through day. Nifty advanced approximately 1.5% on higher volume versus the March 17 session, signalling renewed market strength. Similarly, Sensex is up around 1.53% on higher volume than the March 17 session. However, if the distribution day count increases or Nifty breaches its key support levels, we may downgrade the market status to an 'Uptrend Under Pressure' to reflect heightened risk.

The index has successfully surpassed the 21-DMA and 22,800, reinforcing its upward momentum. If it sustains above 22,600, it is well-positioned to advance toward the 23,000–23,400 range in the coming days. On the downside, key support is established between 22,600 and 22,550, which will be crucial in maintaining the ongoing bullish trend.

How did Nifty Bank perform?

On Tuesday, Bank Nifty opened with a gap up and maintained a bullish trajectory throughout the session. In the previous session, the index formed a bullish candle with a higher-high and higher-low price structure on the daily chart. Additionally, it is reclaiming its 50-DMA, reinforcing positive momentum. Bank Nifty opened at 48,792.90, fluctuated within a range of 49,400.30–48,629.45, and ultimately closed at 49,314.50, reflecting sustained buying interest.

The 14-day relative strength index (RSI) has shown a sharp upward movement, currently positioned at 57, indicating strengthening momentum. Simultaneously, the moving average convergence divergence (MACD) has turned positive, signalling a potential shift in trend. However, it remains below its central line.

According to O'Neil's methodology of market direction, the market status was shifted to a Rally Attempt from a Downtrend on Monday. Last week, Wednesday’s session was considered day one of an attempted rally, as Nifty Bank closed in the green. The index did not breach the correction low of 47,702.90 since day one. Hence, yesterday’s action qualifies as day three of an attempted rally. From here, we would prefer to see a follow-through day before shifting the market to a confirmed uptrend.

The index reclaimed its 21- and 50-DMA, indicating a positive bias. Going forward, the 21-DMA will serve as a key support level, as a breach below it could introduce weakness and heightened volatility. If the bullish momentum sustains, the index has the potential to reach 50,000–50,500 in the coming days.

About MarketSmith India: Trade name: William O'Neil India Pvt. Ltd. Sebi-registered research analyst registration number is 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.