Top stock picks for today: MarketSmith India's stock recommendations for 20 March

2. Indian Hotels Co. Ltd: Current market price: ₹810.6 | Buy range: ₹795–820 | Profit goal: ₹960 | Stop loss: ₹740 | Time frame: 2–3 months

Nifty 50: How the benchmark index performed on 19 March 

India's benchmark index, Nifty 50, ended higher for the third consecutive session and closed above 22,900. The index started the day with a muted opening at 22,875 and continued to trade in a range of 22,800–22,940. As a result, the index formed a bullish candle on the daily chart with a higher-high and higher-low price structure. Barring IT and FMCG, all the major indices closed positive. Market breadth remained strong, with the advance-decline ratio settling at approximately 5:1.

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From a technical standpoint, the index managed to close above its 21-DMA and 22,800, which had been facing strong resistance. The 14-day relative strength index (RSI) is trending upward and is currently positioned at 56. Additionally, while the moving average convergence divergence (MACD) has exhibited a positive crossover, it continues to trend below the central line.

Following O'Neil's methodology for market direction, MarketSmith India has upgraded the market status to a 'Confirmed Uptrend' from a 'Rally Attempt' after witnessing a follow-through day. On 18 March, the Nifty advanced approximately 1.5% on higher volume compared to the 17 March session, signalling renewed market strength. Similarly, the Sensex rose around 1.53% on higher volume than in the 17 March session. However, if the distribution day count increases or the 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 reclaimed 22,900, demonstrating strong resilience. In the upcoming sessions, it may face resistance at the 50-DMA and 23,000. A fresh breakout and sustained trading above 23,000 could drive the index toward 23,400, followed by 23,550. On the downside, key support levels are positioned between 22,600 and 22,550, followed by 22,300.

How did the Nifty Bank perform on 19 March?

The Nifty Bank opened on a positive note and remained in its bullish momentum throughout the session. The index formed a higher-high and higher-low price structure, reinforcing its strength on the daily chart. Furthermore, it successfully reclaimed the 21- and 50-day moving averages (DMA), signaling a potential trend reversal. The index opened at 49,375.40, fluctuated within a range of 49,807.55–49,324.80, and ultimately closed at 49,702.60, reflecting strong buying interest and improving market sentiment.

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Momentum indicators also confirm the bullish bias. The 14-day RSI has surged to 60.92, indicating strengthening momentum and a shift into bullish territory. Additionally, the MACD has turned positive, supporting the potential continuation of an uptrend.

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 the 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.

Currently, the 21- and 50-DMA serve as key support levels, and any breach below these levels could introduce short-term volatility and weakness. However, if the bullish momentum persists, the Nifty Bank has the potential to extend gains toward the 50,500–51,000 range in the upcoming sessions.

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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.