Nifty 50 on 7 January
Nifty 50, India’s benchmark index, closed 92 points higher on Tuesday, ending its two-day losing streak to settle at 23,207.90. The index opened with a gap-up, tracking positive global cues, and traded within a narrow range of 23,637–23,795.
Except for IT, all major sectoral indices ended in the green, with the session forming a doji candle on the daily chart. The advance-decline ratio, however, remained weak, skewing toward decliners at approximately 3:1.
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Technically, the Nifty failed to sustain above its 200-day moving average (DMA) and hovers slightly above a key support level—an upward-sloping trendline connecting the lows of 21 November and 31 December 2024. The 14-day relative strength index (RSI) is trending sideways at around 43, while the moving average convergence/divergence (MACD) remains in negative territory.
According to O’Neil’s market direction methodology, the Nifty gained over 1.7% on Thursday with higher trading volumes, prompting an upgrade in market condition to a Confirmed Uptrend. However, the status could be downgraded to Uptrend Under Pressure if the distribution day count rises or the Nifty breaches a key support level.
At present, the index has slipped below its 200-DMA but is trading slightly above the critical support level of 23,400. A drop below 23,400 could trigger further downside, potentially pulling the index toward 23,000. On the upside, resistance is expected around the 24,000–24,200 range.
Nifty Bank’s performance
Nifty Bank rose 280 points on Tuesday, breaking its two-day losing streak to close at 50,202.15. The index opened with a gap-up at 50,061.20, traded within a narrow range of 49,969–50,447.60, and ended the session forming a small bullish candle with a long shadow, indicating profit booking at higher levels.
On the technical front, the RSI has rebounded from the oversold zone and is currently at 37. Meanwhile, the MACD remains in negative territory on the daily chart.
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According to O’Neil’s market direction methodology, the status has shifted to a Downtrend as the Nifty breached its 200-DMA and is trading below all key moving averages with a negative bias. To move the market condition to a Rally Attempt, the Nifty must establish a bottom and sustain above its recent low for three consecutive sessions.
Currently, the index remains below its 200-DMA. Immediate support is positioned at around 49,500, and a breach of this level could extend the downside to 48,500–48,000. On the upside, the 200-DMA, currently at 50,700, serves as a critical resistance level to watch.
Stocks to buy, recommended by MarketSmith India:
● Biocon Ltd: Current market price ₹ 382.35 | Buy range ₹ 370–385 | Profit goal ₹ 458 | Stop loss ₹ 348 | Timeframe 2–3 Months
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● Minda Corp.: Current market price ₹ 530.50 | Buy range ₹ 518–534 | Profit goal ₹ 640 | Stop loss ₹ 480 | Timeframe 2–3 Months
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.
