Stock Recommendations by MarketSmith India for April 1, 2023
Nifty 50 showed volatility with a 0.72% weekly gain, while March experienced a 6.20% monthly increase. MarketSmith India recommends Aster DM Healthcare and Fortis Healthcare for April 1, with specified buy ranges, profit goals, and stop losses. The Nifty Bank remains in a confirmed uptrend despite short-term fluctuations.
The Nifty 50 index of the Indian stock market showed volatility on March 25, ultimately gaining 0.72% for the week despite encountering resistance at its 50-week moving average (WMA). A ‘Doji’ candle pattern indicates indecision at these heights. Additionally, March saw a robust 6.20% gain on a monthly basis, establishing a bullish candle after a five-month correction.
MarketSmith India recommends two stocks for purchase on April 1:
1. Aster DM Healthcare
– Current Price: ₹483.50
– Buy Range: ₹470–487
– Profit Goal: ₹560
– Stop Loss: ₹448
– Timeframe: 2–3 months
2. Fortis Healthcare Ltd
– Current Price: ₹698.35
– Buy Range: ₹678–702
– Profit Goal: ₹845
– Stop Loss: ₹625
– Timeframe: 2–3 months
On March 28, the Nifty 50 index fell 0.31%, indicating a bearish trend and forming a negative candle. Most sectors, with the exception of FMCG, declined, weighed down by factors including year-end closing pressures and upcoming RBI policy announcements. The advance-decline ratio favored decliners 1:2, indicating overall negative sentiment.
Technically, the Nifty 50 faces resistance at 50-WMA, and support is found at the 200-EMA. The Relative Strength Index (RSI) at 63 remains in a bullish zone but presently trends down. The Moving Average Convergence Divergence (MACD) supports a bullish outlook, staying above the central line.
MarketSmith India has confirmed the market status as a ‘Confirmed Uptrend’ according to O’Neil’s methodology. A significant resistance at 23,850 remains, while strong support exists near 23,400. A breach of this level could further lower the index to around 23,000.
On the same day, the Nifty Bank index completed the session flat, forming a bearish Doji candlestick after a volatile trading day. It showed resilience with buying interest in major banks like Kotak and ICICI, resulting in a 6.66% gain for March and 9.42% for FY 2024-25.
Positive technical indicators for Nifty Bank include an RSI at 70, suggesting significant bullish momentum with MACD trading positively. Continual support is noted at the 200-DMA (roughly 51,000–50,900), and maintaining trade above this could push the index towards the 52,300–52,500 zone.
MarketSmith India, operating as William O’Neil India Pvt. Ltd., is registered with SEBI as a research analyst. Investors should seek professional advice before making investment decisions.
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In summary, the Nifty 50 index is navigating through resistance at its 50-WMA with positive March performance. Among the recommended stocks, Aster DM Healthcare and Fortis Healthcare present promising opportunities with set profit targets and control measures via stop losses. The Nifty Bank index, while showing near-term volatility, remains in an uptrend, and careful monitoring of support levels is crucial for investors.
Original Source: www.livemint.com
