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Stock market today: Indian stock market benchmarks—the Sensex and the Nifty 50—ended almost flat on Wednesday, 16 July, amid mixed global cues.

The Sensex ended the day 64 points higher at 82,634.48, while the Nifty 50 settled at 25,212.05, up 16 points.

The BSE Midcap index ended 0.10% higher, while the BSE Smallcap index ended with gains of 0.28%.

The Nifty 50 ended flat on Wednesday after a range-bound session, supported by gains in PSU Bank, IT, and Realty stocks. The index managed to close above the 25,200 mark, with broader market indices mirroring its moves—both the Nifty Midcap and Smallcap indices also ended flat. Market breadth improved, with the advance-decline ratio closing at 1:1.

Despite Tuesday’s rebound, the index remained below its 21-day moving average (21-DMA), signaling continued near-term caution. On the daily chart, the relative strength index (RSI) has turned upward and is nearing 51, indicating marginally improved momentum. However, the daily MACD still shows a negative crossover above the zero line, lacking strong bullish confirmation.

According to O’Neil’s market direction methodology, the Nifty has reclaimed its recent high of 25,116. As a result, the market status has been upgraded to a Confirmed Uptrend as of 11 June 2024.

While Tuesday’s recovery brought temporary relief, the index encountered resistance near the 21-DMA again on Wednesday. Key support now lies in the 25,000–24,900 zone. A decisive breakout and sustained close above 25,300 would be needed to revive bullish momentum. If that level is cleared, the Nifty could head toward the 25,600–25,700 resistance zone in the near term.

Nifty Bank extended its positive momentum on Wednesday, rising 0.28% to close at 57,168.95. The index reclaimed the crucial 57,000 mark, signalling a solid recovery after recent pullbacks. The gains were led by strong performances from PNB, Canara Bank, and Bank of Baroda, while AU Small Finance Bank, Kotak Mahindra Bank, and ICICI Bank lagged.

The index found firm support near its 21-day moving average (21-DMA), which acted as a springboard for the rally. This recovery aligns with improving market sentiment, as reflected by a rising relative strength index (RSI), indicating strengthening momentum. However, the MACD continues to show a negative crossover, albeit above the zero line—implying a cautiously optimistic outlook that still awaits stronger confirmation.

According to O’Neil’s market direction methodology, Nifty Bank remains in a Confirmed Uptrend, a status it has held for several weeks.

Sustaining levels above 57,000 will be key for the near-term trend. A stable hold above this threshold could drive the index toward resistance at 57,200, with a potential upside target near 57,650. On the flip side, a failure to maintain above 57,000 may introduce short-term volatility, with 56,600–56,500 serving as a critical support zone.

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, developed 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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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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