Best stock recommendations today: MarketSmith India's top picks for 16 April

Easing concerns over global trade tensions and expectations of potential rate cuts by major central banks lifted overall market mood. Buying interest across key sectors, particularly in banking, metal, energy, and auto, contributed to the day’s gains.

Also Read: Mayhem for IT stocks as FIIs pull out big. What lies ahead?

Best stock recommendations today | Two stock picks by MarketSmith India:

Lux Industries (current price: ₹1,435.50)

● Why it is recommended: Robust domestic economy tailwind, strong core operating performance, stable asset quality, focused loan growth.

● Key metrics: P/E: 23.70 | 52-week high: ₹2,493 | Volume: ₹21.15 crore

● Technical analysis: Reclaimed 50 DMA after forming a rectangular base

● Risk factors: Intense competition in the innerwear segment, raw material price volatility.

● Buy at: ₹1,400–1,440

● Target price: ₹1,686 in three months

● Stop loss: ₹1,290

Axis Bank (current price: ₹ 1,114.05)

● Why it’s recommended: Rising coal demand, government support and monopoly advantage

● Key metrics: P/E: 11.73 | 52-week high: ₹1,339.65 | Volume: ₹1,032 crore

● Technical analysis: Bullish flag continuation pattern, 100-DMA support

● Risk factors: Sluggish deposit growth, margin pressure, external economic challenges.

● Buy at: ₹1,114

● Target price: ₹1,255 in three months

● Stop loss: ₹1,040

Nifty 50: How the benchmark index performed on 15 April

On Tuesday, the Nifty 50 index extended its recovery and surged 2.19%, closing at 23,328. The session began with a strong gap-up opening and maintained a steady uptrend throughout the day, trading within a range of 23,207–23,368. A bullish candle was formed on the daily chart, reflecting improved market sentiment. All sectoral indices ended in the green, with the advance-decline ratio at a solid 6:1, indicating broad-based buying support.

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From a technical perspective, the index retested its 100-day moving average (DMA) but struggled to decisively close above it, ending the session around that key level. The RSI is trending higher with a positive slope, while the MACD has shown a bullish crossover on the daily chart, suggesting strengthening momentum in the near term.

The Indian market has been shifted from a Downtrend to a Rally Attempt on Friday as the Nifty held above the recent low of 21,744 for three sessions. A follow-through day or a new high is needed to confirm an uptrend. However, if the Nifty breaches 21,744, the market will revert to a Downtrend.

The index has recently tested its 100-DMA, positioned around 23,390, which may act as a resistance level. If the index manages to reclaim and sustain trading above this 100-DMA, it could potentially drive the index toward 23,800, followed by 24,200 level in the coming days. On the downside, immediate support is near 22,900–22,800 levels.

How did Nifty Bank perform?

The Nifty Bank continued its bullish momentum on Tuesday, surging 2.70% and closing near the day’s high after a strong gap-up opening. Heavyweight stocks like HDFC Bank and ICICI Bank led the rally. The index formed a bullish candle on the daily chart and is now trading well above all its key moving averages, reflecting strong positive sentiment.

Momentum indicators support this strength, with the RSI trending upward around 64 and the MACD turning positive and trading above the central line.

In accordance with O'Neil’s methodology for assessing market direction, Nifty Bank has transitioned from an "Uptrend Under Pressure" to a “Confirmed Uptrend" status.

Also Read: The market recovery offers little solace. Ask India’s fear gauge.

Moving forward, the index faces immediate resistance near 52,500. A decisive breakout and sustained trade above this level could drive further upside towards 53,500–54,000. However, failure to surpass 52,500 may lead to consolidation in the near term.

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)"

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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.