Stocks to buy today: MarketSmith India’s top stock picks for 5 March

Nifty PSU banks, PSE and energy stocks posted gains, while the auto, IT, FMCG and pharma sectors declined. Market breadth favored advancers, with an advance-decline ratio of 1.50, indicating stronger buying sentiment in select stocks.

From a technical perspective, the index breached the 22,000 psychological level intraday but managed to close above it. The 14-day relative strength index (RSI) has touched oversold territory and is trending sideways, positioned around 22. The moving average convergence divergence (MACD) indicator is also trending negatively below the zero line.

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According to O’Neil’s methodology of market direction, the market shifted from ‘rally attempt’ to ‘downtrend’ on February 21 as Nifty breached its recent correction low of 22,725. Looking forward, the market direction will be changed to ‘rally attempt’ when Nifty closes in the green for the first time or closes in the upper half of the day’s range and stays above that low for three straight sessions. A follow-through day is essential before the market status can be changed back to ‘confirmed uptrend’.

The overall market sentiment remains bearish, with Nifty 50 trading with a negative bias. Looking ahead, the index has good support around 22,000–21,800. A fall below 21,800 may lead the index toward 21,500 but if the index remains above 22,000, it could trade within a consolidation range of 22,000–22,450 in the coming session.

How Nifty Bank performed

On Tuesday, Nifty Bank opened on a negative note but saw buying interest at lower levels after hitting its intraday low. The index formed a bullish candle, snapping a two-day losing streak. In the previous session, it opened at 47,942.50, traded within the range of 48,374.90–47,924.75, and closed at 48,245.20, reflecting cautious market sentiment and prevailing volatility.

The 14-day RSI has been moving downward and is currently positioned around 37-38. Meanwhile, the MACD is trading with a negative crossover and remains below its central line, indicating continued weakness in momentum.

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According to O’Neil’s methodology of market direction, market status has been downgraded to ‘downtrend’ from ‘uptrend under pressure’ on Monday as the distribution day count has increased to seven. The index also re-tested its correction low of 47,898.35. 

Looking forward, the market status will be upgraded to ‘rally attempt’ when Nifty closes in the green or in the upper half of the day’s range and stays above that low for three consecutive sessions. A follow-through day will then be required to confirm an uptrend, focusing on stocks breaking out of early-stage bases with strong relative strength and accumulation.

Nifty Bank is trending below all its key moving averages with a negative bias in the broader range of 47,500-50,000. A breakout or breakdown on either side may lead the index further in the same direction in the coming days. Immediate strong supports are around 47,800, and 47,500, i.e., the 100-week moving average (WMA).

Stocks recommended by MarketSmith India

• SRF: Current market price ₹2,853.30 | Buy range ₹2,820–2,870 | Profit goal ₹3,200 | Stop loss ₹2,690 | Timeframe 2–3 months
•  Fortis Healthcare Limited: Current market price ₹639.1| Buy range ₹625–645| Profit goal ₹740 | Stop loss ₹590 | Timeframe 2–3 months

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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.