Stocks to buy: Two stock recommendations from MarketSmith India for 14 January

MarketSmith India recommends two stocks for 14 January.
MarketSmith India recommends two stocks for 14 January.

Summary

  • Here are the two stock recommendations from MarketSmith India for Tuesday, 14 January.

Nifty50 on 13 January 

Nifty50 closed lower for the fourth consecutive session at 23,085.95. Taking cues from the global market, the index started the session with a gap-down opening of 23,195.40 and continued to trade lower as the day progressed. Selling pressure intensified in the second half of the session. As a result, the index formed a bearish candle with a lower-high and lower-low price structure on the daily chart. All major sectoral indices and the broader market indices closed lower. The advance-decline ratio leaned toward decliners.

From a technical perspective, Nifty breached its key support level, i.e., an upward-sloping trendline connecting the low of November 2021 to that of December 2024, last Friday. It also breached the November 2024 low. The 14-day relative strength index (RSI) is trending downward, positioned around 32 on the daily chart, while the moving average convergence/divergence (MACD) indicator remains negative.

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Based on O'Neil's methodology of market direction, we changed the market status to ‘downtrend’ yesterday as Nifty breached its recent low of 23,263, a key support level.

The index has breached its 200-week moving average (WMA) and is trading marginally above its key support level of 23,400. A fall below 23,400 may open up fresh downside, pushing the index further toward 23,000, followed by 22,800–22,700 in the coming few days. On the flip side, the index may face resistance around 23,600–23,700.     

How Nifty Bank performed

Nifty Bank closed lower for the fourth consecutive session at 48,041.25. The index had a gap-down opening and remained in negative territory throughout the day. It formed another bearish candle with a lower-high and lower-low price structure on the daily chart, with a negative bias. The index opened at 48,264.25, traded within 47,879.35–48,606.35, and closed at 48,041.25.

The technical indicator, RSI, has been trending downward and is currently placed at 25, while the MACD remains in negative territory on the daily chart.

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According to O'Neil's methodology of market direction, the market status has shifted to ‘downtrend’ as it has breached its 200-DMA. It is currently trending below all its key moving averages with a negative bias. Looking ahead, we will shift the market status to a rally attempt if Nifty establishes a bottom and remains above its recent low for three straight sessions.

At present, the index is comfortably trending below the 200-DMA with a negative bias. Sustainable trading below 48,000 may open a fresh downside window toward 47,000 in the coming few days. 

Stocks to buy, recommended by MarketSmith India

  • Reliance Industries Ltd.: Current market price ₹1,239.85 | Buy range ₹1,230–1,250 | Profit goal ₹1,400 | Stop loss ₹1,192 | Timeframe 1–2 months
  • Marico: Current market price ₹668.40 | Buy range ₹646–670 | Profit goal ₹800 | Stop loss ₹612 | Timeframe 3–4 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.

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