Hot Stock Picks: MarketSmith India Recommends Aditya Birla AMC and Hyundai Motors for Big Gains

Nifty50 Performance

The Nifty50 index bounced back strongly on Tuesday, finding support near its 50-week moving average at 23,300. It opened higher, touched a high of 23,780.65, but erased most gains by the end of the day due to heavy profit booking in Reliance Industries, L&T, and metal stocks. Nifty closed at 23,518.50, recording a low of 23,477 during the session.

The index formed a ‘gravestone doji’ candlestick pattern, which signals caution in the market. Momentum indicators like RSI (Relative Strength Index) are trending downward, sitting near 30—a signal of oversold conditions. MACD (Moving Average Convergence Divergence) is also negative, indicating bearish momentum.

Key support for Nifty is 23,300, and breaching this level could increase selling pressure. According to the O’Neil methodology, the index is currently in a “downtrend” after breaking its previous low of 23,350.40.

Nifty Bank Performance

The Nifty Bank index opened higher and touched a peak of 50,983.50, but profit booking dragged it down to 50,625.50 by the end of the day. It gained 0.52%, but the session formed another ‘gravestone doji’ pattern, reflecting hesitation among buyers.

The Bank Nifty trend is also labeled as a “downtrend” after breaking its correction low of 50,194. Support lies at the 200-day moving average, and breaching it could lead to further losses.

Market Sentiments

Traders should prepare for volatility due to domestic factors like state elections in Maharashtra and Chhattisgarh and global geopolitical tensions like the recent missile attack near the Russian border.

MarketSmith India’s Top 2 Stock Picks

1. Aditya Birla Sun Life AMC (ABSL AMC)
   • Current Price: ₹819.75
   • Buy Range: ₹800–825
   • Profit Goal: ₹920
   • Stop Loss: ₹777
   • Holding Period: 3–4 weeks
     
2. Hyundai Motor India Ltd.
   • Current Price: ₹1,829.80
   • Buy Range: ₹1,800–1,840
   • Profit Goal: ₹2,150
   • Stop Loss: ₹1,690
   • Holding Period: 2–3 months

Key Takeaways

• Nifty’s support is at 23,300; breaching this level could lead to panic selling.
• Bank Nifty remains vulnerable below 50,194.
• Domestic and global factors are likely to drive market volatility.

Looking to maximize gains? Keep an eye on Aditya Birla AMC and Hyundai Motors for promising returns!