However, markets stayed volatile with a negative tone as investors remained cautious. The key trigger for the decline was a fear of rising global trade tensions after the US imposed steep tariffs, including 104% on Chinese imports.

Also read: The MPC’s decision was the first scene of a whole new tariff-driven drama

Best stock recommendations today: Two picks by MarketSmith India

Buy: Colgate-Palmolive (India) Ltd (current price: ₹2,508) 

• Why it’s recommended: Strong market leadership in oral care, sustainable growth strategy
• Key metrics: P/E: 45.40, 52-week high: ₹ 3,890, volume: ₹ 5.89 lakh
• Technical analysis: Reclaimed its 100-DMA on above average volume
• Risk factors: Commodity price volatility, supply chain disruptions, regulatory compliance
• Buy at:  ₹2,508
• Target price:  ₹2,890 in three months
• Stop loss:  ₹2,310

Buy: United Spirits (current price: ₹ 1,451) 

• Why it’s recommended: Premiumization trend, young, urban demographic, and rising disposable income support long-term demand.
• Key metrics: P/E: 70.33, 52-week high: ₹ 1,700, volume: ₹ 8.87 crore.
• Technical analysis: 200-DMA retake
• Risk factors: Volatility in input costs, competition, and taxation
• Buy at: ₹1,451
• Target price:  ₹1,650 in three months
• Stop loss: ₹1,370

How Nifty 50 performed on 9 April

On Wednesday, Nifty 50 declined 0.61% to close at 22,399.15 points. The market had a gap-down opening at 22,447 and traded within 22,270-22,700. This resulted in the formation of a bearish candle on the daily chart. Barring FMCG and consumer durables, all sectoral indices ended in negative territory. Market breadth was weak, with the advance-decline ratio at 2:3, indicating broader market weakness.

Also read | Mint Explainer: How RBI’s latest rate cut, change in stance impact borrowers, depositors

Technically, the index is trading below all its key moving averages on the daily chart. On the weekly chart, it is trading above the 100-week moving average (WMA). The RSI and MACD indicates a downward trend on the daily and weekly charts, signaling ongoing weakness. The daily RSI is at 40, and the MACD remains below the central line with a negative crossover.

Following O’Neil’s methodology of market direction, MarketSmith India has downgraded the market status to ‘downtrend’. 

The index took support around the 100-week moving average and gained on Tuesday. Now the index is trading in a range-bound zone with a negative bias. Going forward, the 100-WMA will act as a key support while immediate upside resistance is placed around 22,500, followed by 22,700–22,800.

How did Nifty Bank perform?

The RBI’s decision to cut the repo rate by 25 bps is expected to ease lending rates, potentially spurring loan demand and supporting credit growth, which may positively impact the banking sector over the medium term. 

Despite this accommodative stance, Nifty Bank remained under pressure and lost around 0.54% on Wednesday. On the daily chart, the index formed a bearish candle with a lower-high and lower-low pattern, signaling continued weakness. It also breached its 100-day moving average (DMA), reflecting cautious investor sentiment. The index opened at 50,487.10, touched an intraday high of 50,496.90, and closed at 50,240.15.

The relative strength index (RSI) has shown a slight upward movement, currently standing at 50.28. However, the moving average convergence divergence (MACD) exhibited a negative crossover during today’s trading session, indicating an increase in selling pressure.

Also read | RBI Policy: Domestic growth takes priority amid global uncertainties

In alignment with O’Neil’s methodology for evaluating market direction, the current status of Nifty Bank is “uptrend under pressure”. This shift indicates an increase in distribution signals and heightened volatility, signaling caution as the index exhibits signs of weakening momentum.

This major sectoral index has breached its 200-DMA and is now hovering around its 100-DMA in a volatile manner. It must cross and hold above 51,000 to turn bullish in the coming days. On the downside, strong support is placed around 49,000.

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, founded by legendary investor William J. O’Neil. 

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.