Best stock recommendations today: MarketSmith India's top picks for 22 April
Summary
- Best stock recommendations today: Discover MarketSmith India's expert top picks for Tuesday, 22 April. Get insights into top-performing stocks and make informed investment decisions.
The Nifty 50 gained 1.15% on Monday and closed above 24,100. The rally was driven by strong earnings from major banks like HDFC Bank and ICICI Bank, boosting investor sentiment. The financial sector led the rally, with the Nifty Bank hitting a record high. Broad-based buying was observed across sectors, barring FMCG, all the sectors closed in green. Foreign institutional investors (FIIs) continued their buying streak, supporting market momentum. Here are the best stock recommendations for today:
Two stock recommendations by MarketSmith India for 22 April:
Astral Ltd (current price: ₹1336.7)
- Why it’s recommended: Diversified product portfolio and segment expansion, dealer-friendly policies, and distribution strength
- Key metrics: P/E: 67.21 | 52-week high: ₹2,454.00 | Volume: ₹6.10 lakh
- Technical analysis: Reclaimed its 21-DMA
- Risk factors: Raw material price volatility, supplier concentration risk
- Buy at: ₹1,336.7 | Target price: ₹1,710 in three months | Stop loss: ₹1,228
ICICI Lombard General Insurance Co. Ltd (current price: ₹ 1,841)
- Why it’s recommended: Strong market position, expanding health insurance segment
- Key metrics: P/E: 72.06 | 52-week high: ₹ 2,302 | Volume: ₹5.46 crore
- Technical analysis: horizontal trendline breakout
- Risk factors: Competition and price wars, dependence on motor segment
- Buy at: ₹1,841 | Target price: ₹ 2,080 in three months | Stop loss: ₹1,720
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How the Nifty 50 performed on 21 April
On Monday, the Nifty 50 extended its rally for the fifth consecutive session, gaining around 1.15% and forming a strong bullish candle with a higher-high and higher-low on the daily chart. Broader market indices and most major sectoral indices, except FMCG, also posted gains. The Nifty IT and Metal sectors contributed to the rally, witnessing notable short covering. The advance-decline ratio strongly favoured the bulls at 3:1, reflecting broad market participation.
From a technical perspective, the index retook its 200-DMA and managed to close above it. The relative strength index (RSI) continues to trend upward with a positive slope on both the daily and weekly charts, indicating strengthening momentum. The MACD on the daily chart is also rising and remains above the central line, reinforcing the prevailing bullish sentiment. However, on the weekly chart, MACD is still trading below the central line.
In accordance with O'Neil’s methodology of market direction, the Nifty Bank has transitioned from a "Rally Attempt" to a “Confirmed Uptrend" status.
Looking ahead, the bias remains positive in the coming days. However, some consolidation cannot be ruled out. The index has reclaimed its 200-DMA and closed above it with strong bullish sentiment, making the 200-DMA an immediate support level, followed by 23,500. On the upside, immediate resistance is placed near 24,200. For the index to turn more bullish, it must decisively cross and sustain above 24,200, which could open the path toward 24,700–24,900 in the coming sessions.
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How did the Nifty Bank perform?
On Monday, the Nifty Bank rallied 1.87%, extending its bullish momentum and closing at a fresh all-time high of 55,304.50, strongly outperforming the broader market. The rally was fueled by robust earnings from major private banks, including HDFC Bank and ICICI Bank, which lifted overall sentiment in the financial sector. Nifty Financial Services index also scaled a new high, reflecting broad-based participation and strength across financial names.
The index formed another bullish candle on the daily chart and closed at a fresh all-time high, continuing its move in uncharted territory with strong momentum. Momentum indicators, RSI and MACD, are trending firmly in a bullish trajectory across multiple timeframes, reinforcing the prevailing strength. Additionally, this major sectoral index has outperformed both the broader market and other sectoral peers, indicating strong sector-specific leadership and sustained buying interest.
According to O'Neil’s methodology of market direction, the Nifty Bank has transitioned from an "Uptrend Under Pressure" to a “Confirmed Uptrend" status.
Also Read: Why an airline is building a hotel empire in India
The bias remains positive in this space as long as it continues to trade above the previous pivot level of 54,500. The current momentum may drive the index toward 58,500–60,000 in the coming weeks. However, a failure to hold above the 54,500–54,000 support range could trigger profit booking and lead to short-term consolidation.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
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Website: https://marketsmithindia.com
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.
