Best stock recommendations for 21 March by MarketSmith India

Gujarat Fluorochemicals Ltd: Current market price: ₹ 4,004.2 | Buy range: ₹3,960–4,040 | Profit goal: ₹4,850| Stop loss: ₹ 3,750| Timeframe: 2–3 months

Nifty 50: How the benchmark index performed on 20 March

India’s benchmark index, Nifty 50, extended its winning streak to four consecutive sessions, reclaiming the 23,200 level on Thursay, 20 March. The index opened on a positive note at 23,036 and witnessed steady buying interest throughout the day, forming a bullish candle on the daily chart with a higher-high, higher-low price structure.

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All major sectoral indices closed in the green, while market breadth remained strong, with an advance-decline ratio of approximately 2:1.

Technical outlook

Nifty closed above its 50-day moving average (DMA) and the 23,000 mark, reinforcing bullish sentiment. It also broke out from a downward-sloping trendline connecting the September 2024 and December 2024 highs. The 14-day Relative Strength Index (RSI) continues to trend upward, currently positioned at 63, while the Moving Average Convergence Divergence (MACD) has shown a positive crossover, although it remains below the central line.

Key levels

Following O’Neil’s methodology, MarketSmith India has upgraded the market status to a ‘Confirmed Uptrend’ from a ‘Rally Attempt’ after a follow-through day on Tuesday. On that day, Nifty 50 and Sensex surged by approximately 1.5% on higher trading volumes compared to the 17 March session, signalling renewed market strength and bullish momentum.

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However, a rise in distribution days or a breach of key support levels could prompt a downgrade to ‘Uptrend Under Pressure’, reflecting increased risk and volatility.

With the index reclaiming the 50-DMA and breaking the downward trendline, sustained trading above this level could drive Nifty toward 23,400, followed by 23,550. On the downside, immediate support remains at 23,000.

How did Nifty Bank perform 20 March?

On Thursday, Nifty Bank opened on a strong note and maintained its bullish momentum throughout the session, forming a higher-high, higher-low pattern on the daily chart—a sign of sustained strength. The index remains comfortably above its 21- and 50-day moving averages (DMA) and is approaching the 100-DMA with a positive bias.

The index opened at 49,947.60, fluctuated within a range of 50,155.30–49,771.65, and closed at 50,062.85, reflecting strong buying interest and improving market sentiment.

Momentum indicators reinforce the positive bias. The 14-day Relative Strength Index (RSI) has climbed to 64, signaling strengthening momentum and a shift into bullish territory. Meanwhile, the Moving Average Convergence Divergence (MACD) has turned positive, further supporting the potential continuation of an uptrend.

Following O’Neil’s market methodology, the market status was upgraded to a ‘Rally Attempt’ from a ‘Downtrend’ on Monday. Last Wednesday’s session marked day one of an attempted rally as Nifty Bank closed in the green. Since then, the index has held above its correction low of 47,702.90, qualifying Monday as day three of the rally attempt. A follow-through day is now needed to confirm a sustained uptrend.

Key levels to watch

The 49,300–49,600 zone aligns with the 50-DMA and is expected to act as crucial support. A breach below this range could introduce short-term volatility, potentially triggering downside pressure.

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Conversely, if the bullish momentum holds, Nifty Bank could extend its gains toward 50,500–51,000 in the near term. A decisive breakout above these levels could further strengthen the upward trajectory.

About MarketSmith India:

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registered Research Analyst 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.