2. Pearl Global Industries Ltd.
Current market price: ₹1,528.1 | Buy range: ₹1,500–1,535 | Profit goal: ₹1,760 | Stop loss: ₹1,415 | Timeframe: 1–2 months
How Nifty 50 performed on 12 March
Nifty 50 ended flat for the second consecutive session after trading between 22,330 and 22,580. The index started the session on a muted note at 22,536 and continued to slide toward its key support level of 22,300. However, it managed to recover some losses in the afternoon session and closed at 22,470. Market breadth remained weak, with the advance-decline ratio settling around 1:2.
Among sectoral indices, IT, realty and metals closed in negative territory, while banks, auto, and pharma gained the most.
From a technical standpoint, the 14-day relative strength index (RSI) remains in the bearish zone, with its slope turning sideways, and is currently positioned around 40. The moving average convergence divergence (MACD) has shown a positive crossover and continues to trend below the central line.
Also read | Bharti Hexacom: Airtel in a small pack
Following O’Neil’s methodology of market direction, MarketSmith India shifted the market status to ‘rally attempt’ from ‘downtrend’ last Thursday. From here, we would prefer to see a follow-through day or Nifty scaling a new high before upgrading the market status to ‘confirmed uptrend’. On the flip side, if Nifty breaches its recent low of 47,841.30, the market status will revert to ‘downtrend’.
Looking ahead, the 21-EMA remains a critical level to monitor, currently positioned around 22,650–22,700. A sustained move above this level could pave the way for an upward trajectory toward 22,850–23,000 in the coming days. However, failure to surpass and hold above this threshold may result in continued volatility. On the flip side, downside support is placed around 22,300.
How did Nifty Bank perform?
On Wednesday, Nifty Bank opened on a mildly positive note and bounced back after a three-day losing streak. It protected the previous day’s low and formed a small bullish candle on the daily chart, forming a higher-high-and-higher-low price structure. The index opened at 47,894.40, traded within 48,222.15–47,844.95, and closed at 48,056.65.
The 14-day RSI on the daily chart is trending in a downward direction, and is currently positioned around 38-39. Meanwhile, the MACD is also trading with a negative crossover and remains below its central line, indicating continued weakness in momentum.
Also read: Emami is grooming for a better future, but can growth catch up?
Following O’Neil’s methodology of market direction, we shifted the index status to ‘downtrend’ on Tuesday as Nifty Bank breached its recent correction low of 47,844. Looking ahead, the status will be upgraded to ‘rally attempt’ once Nifty Bank closes in the green or in the upper half of the day’s range and remains above that low for three consecutive sessions. A follow-through day will then be required to confirm a transition back to ‘uptrend’.
Nifty Bank is trending below all its key moving averages with a negative bias and breached its recent correction low, indicating fresh weakness. Moving forward, 48,000–47,800 is a key level to watch as sustainable trading below this may open a fresh downside window toward 46,000. However, on the upside, sustainable crossing and holding above 48,000 may cause the index to move toward 49,000 in the coming days.
Also read: IndusInd Bank’s investors scream trust is not meant to be broken
About MarketSmith India:
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registered Research Analyst Registration No.: 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.
