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Technically, the Nifty 50 continues to find support at its 100-EMA, providing short-term stability. The RSI has been moving sideways and is currently positioned at 40, indicating a lack of momentum. Additionally, the MACD remains in a negative crossover, trading below both its signal line and the zero axis. This combination of indicators suggests a cautious near-term outlook, with momentum still subdued. A strong reversal seems unlikely unless the index decisively breaks through key resistance levels, accompanied by sustained buying pressure.

Bharti Airtel Ltd (current price: ₹1,931.8)

Why It’s recommended: Strong financial performance, diversified business model, technological advancements, and international expansion

Key metrics: P/E: 40.44 | 52-week high: ₹2,045.80 | Volume: ₹996.80 crore

Technical analysis: Reclaimed its 50-DMA

Risk factors: Regulatory and legal risks, geopolitical and currency risks in international markets, operational and strategic risks

Buy: ₹1,912–1,970

Target price: ₹2,090 in two to three months

Stop loss: ₹1,850

Fertilizers and Chemicals Travancore Ltd (current price: ₹968)

Why it’s recommended: Strong government backing and market position, healthy capacity utilization and operating scale, diversified product mix and engineering services

Key metrics: P/E: 3,645.33 | 52-week high: ₹1,070 | Volume: ₹134.93 crore

Technical analysis: Downward-sloping trendline breakout

Risk factors: Regulatory and subsidy risk, feedstock constraints and input cost pressures

Buy at: ₹955–970

Target price: ₹1,060 in two to three months

Stop loss: ₹925

Indian equity indices gave up part of their previous session’s gains to end lower, with the Nifty closing below 24,700, pressured by broad-based sectoral selling, barring Auto stocks. The Nifty 50 declined 73.20 points, or 0.30%, to settle at 24,649.55. After a muted start, markets slipped into the red following recent statements from the US President. The Nifty briefly fell below 24,600 during intraday trade. However, selective buying in Auto stocks helped pare some of the losses. Sector-wise, the Nifty Auto rose 0.4%, emerging as the lone gainer, while Banking, IT, Oil and Gas, FMCG, and Pharma sectors declined around 0.5% each. In today’s trade, both benchmark indices declined in three of the last four trading sessions, resuming their downward trend after Monday’s brief pause.

Technically, the Nifty 50 continues to find support at its 100-EMA, providing short-term stability. The RSI has been moving sideways and is currently positioned at 40, indicating a lack of momentum. Additionally, the MACD remains in a negative crossover, trading below both its signal line and the zero axis. This combination of indicators suggests a cautious near-term outlook, with momentum still subdued. A strong reversal seems unlikely unless the index decisively breaks through key resistance levels, accompanied by sustained buying pressure.

According to O'Neil’s methodology of market direction, market status has been downgraded to an "Uptrend Under Pressure" as the Nifty breached its "50-DMA" and the "distribution day count" rose to seven.

The index continues to exhibit a consolidation pattern, trading firmly above its 100-EMA and oscillating within 24,500-24,800. A decisive breakout above 24,900 could signal renewed bullish momentum, potentially propelling the index toward 25,300. On the downside, immediate support lies in 24,480-24,400, where buying interest may emerge. However, a breach below this range could open the door for a corrective move toward 24,200. Price behaviour around these critical levels will be key in shaping the index’s near-term trajectory.

On Tuesday, the Nifty Bank opened on a weak note and experienced heightened volatility throughout the session. The index remained in negative territory and closed 259 points (-0.47%) lower. It formed a bearish candle on the daily chart, reflecting a lower-high and lower-low price structure. The index opened at 55,545.05 and traded within a narrow range, reaching a high of 55,648.15 and a low of 55,202.85. The persistent weakness suggests continued pressure, and the index's outlook remains bearish in the near term.

The momentum indicator, RSI, continues to decline, currently hovering around 36, indicating a weakening underlying strength. In addition, the MACD formed a negative crossover, reinforcing the bearish momentum in the short term. Despite these technical challenges, O’Neil’s methodology of market direction classifies Nifty Bank as being in an "Uptrend Under Pressure". This designation reflects a fragile market environment, characterized by growing caution and early signs of institutional selling, signalling potential risks in the near-term outlook.

The Nifty Bank closed on a negative note and is gradually approaching its 100-DMA, currently positioned around 54,689, just 1.21% below the current level. This moving average could serve as a key support level, potentially prompting a trend reversal. However, a breach of this support may lead to increased negativity and heightened volatility, signalling further downside risks.

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.

Sebi 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.

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