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Sectors such as Nifty IT, Metals, and Automobiles saw heavy selling, while defensive plays like Pharmaceuticals held up relatively well. In the broader market, only 24% of NSE 500 stocks are trading above their 200-day moving average (DMA), while 58% remain above their 50-DMA.
Two stock recommendations by MarketSmith India:
Buy: Choice International Ltd (current price: ₹ 518.7)
Why it’s recommended: Strong financial growth and diverse financial ecosystem
Key metrics: P/E: 68.83, 52-week high: ₹ 568.90, volume: ₹4.37 Lakh.
Technical analysis: Trendline breakout on the daily chart along with strong volume.
Risk factors: Data security concerns, interest rate, and exchange rate fluctuations
Buy at: ₹ 518.7| Target price: ₹610 in 3 months| Stop loss: ₹480
Buy: Bharat Dynamics Ltd (current price: ₹1,343.50)
Why it’s recommended: secured a ₹4,362.23 crore contract to supply armaments to the Indian Armed Forces.
Key metrics: P/E: 83.83, 52-week high: ₹1,794, volume: ₹ 556.75 Cr.
Technical analysis: Retesting downward-sloping trendline breakout on the daily chart
Risk factors: Govt dependency, execution, and cost overruns, geopolitical and economic factors.
Buy at: ₹1,343.50 | Target price: ₹1,700 in 3 months | Stop loss: ₹1,190
How Nifty 50 performed on 3 April
The Nifty 50 declined 0.35% after US President Donald Trump announced 26% reciprocal tariffs on Indian imports. Tracking negative cues from the US market, the index opened lower at 23,150 but recovered some losses in the initial hour before trading sideways for the rest of the session.
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Despite weakness in the frontline indices, the broader market outperformed, with the Nifty Midcap 100 gaining 0.21% and the Smallcap 100 rising nearly 0.58%, shrugging off the broader sell-off. The advance-decline ratio favoured advancers at 2:1.
Technical overview
The index faced resistance around its 50-week moving average (WMA) but found minor support near its 50-DMA. The 14-day relative strength index (RSI) remains range-bound, hovering around 54–55, while the MACD continues trending upward above the central line on the daily chart.
Following O’Neil’s methodology for market direction, MarketSmith India has upgraded the market status to a Confirmed Uptrend.
Key levels
The Nifty 50 managed to hold above its 50-DMA, which now serves as immediate support. A sustained break below this level could heighten volatility and trigger further downside. On the upside, resistance is seen near 23,500. A decisive move above this level could turn the index bullish in the coming days.
Nifty Bank’s performance on 3 April
Nifty Bank started the session on a weak note but regained investor interest during the day, staging a strong recovery to close in positive territory. The index formed a bullish candlestick pattern and decisively closed above its 200-DMA after briefly breaching it during intraday trade.
The index opened at 50,910, hit an intraday high of 51,661.60, a low of 50,906.65, and closed at 51,597.35.
Technical indicators
The RSI has inched higher, now hovering near 66, indicating strengthening momentum. The MACD remains in a positive crossover, trading above its signal line, suggesting continued bullish sentiment.
According to O’Neil’s market direction methodology, Nifty Bank remains in a Confirmed Uptrend.
Key levels
Upside potential: If the index sustains above its 200-DMA, it could advance toward the 52,000–52,500 zone in the near term.
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Downside support: Immediate support lies in the 50,500–50,600 range, aligning with its 50-WMA.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. 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 certifiedexperts before making any investment decisions.
