Buy or sell stocks: Benchmark indices Sensex and Nifty closed slightly lower on Tuesday, weighed down by elevated crude oil prices and renewed tensions between the US and Iran, which dampened investor sentiment.
The 30-share BSE Sensex ended 12.99 points, or 0.02 per cent, lower at 76,944.28 after a highly volatile session. The index was trading at 76,685.48 at 3:12 pm, down 271.79 points, before recovering most of its losses during the Closing Auction Session (CAS), which the Securities and Exchange Board of India (Sebi) began implementing in a phased manner from August 3.
During the session, the Sensex fell as much as 301.15 points, or 0.39 per cent, to hit an intraday low of 76,656.12.
Meanwhile, the 50-share NSE Nifty declined 24.60 points, or 0.10 per cent, to settle at 24,055.80 on the weekly expiry day. The index had also slipped nearly 100 points to 23,980.55 at 3:20 pm before paring losses by the close.
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Nifty 50
Nifty 50 ended marginally lower at 24,055.80, declining 24.60 points (-0.10%), after opening at 24,077.55, with an intraday high of 24,143.15 and low of 23,952.55. The index once again found support around the 24,000 zone and bounced initially, but later faced rejection near the previous resistance area and witnessed a sharp decline.
According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty closed below the 24,000 level and formed a bearish doji-like candle on the daily chart, reflecting indecision with selling pressure at higher levels. The index continues to trade below all key moving averages, while RSI stands at 42.86, keeping the overall momentum cautious.
“Technically, Nifty is likely to maintain a Sideways bias, with the 24,000 zone continuing to remain important for the near-term structure. Immediate support is placed at 23,900–23,950, while 24,200–24,250 remains the key resistance zone. A sustained move above 24,250 could improve the setup and support a recovery towards higher levels, whereas a decisive break below 23,900 may increase selling pressure. The expected trading range for the next session is 23,900–24,250. Sector-wise, Nifty IT and FMCG remained among the stronger pockets, while Media and Oil & Gas showed relative resilience. Healthcare, Financial Services, Auto, Pharma, Consumer Durables and Realty witnessed notable selling pressure,” said Bagadia.
Bank Nifty
Bank Nifty opened with a sharp gap-down of around 464 points at 57,560.30 and remained volatile during the session, moving within a broad range before closing at 57,409.60, down 615.35 points (-1.06%). The index touched an intraday high of 57,766.25 and low of 57,150.70, with the daily candle closing red.
Bagadia noted that the Bank Nifty slipped below the 20 EMA, indicating some weakness in the near-term structure, while RSI stands at 48.34. The index continues to remain range-bound, although the sharp gap-down opening and close below the 20 EMA suggest cautious sentiment.
“Overall, 57,800–58,000 will remain the key resistance zone, while immediate support is placed at 56,800–57,000. Sustaining above 57,000 could help the index stabilise and attempt a recovery towards the higher end of the range, whereas a decisive break below 56,800 may extend the selling pressure. A move above 58,000 would improve the short-term setup, while failure to reclaim the 20 EMA could keep the bias cautious. The expected trading range for the next session is 56,800–58,000 with a Sideways bias,” he added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Wednesday, 2 September: GHCL Textiles, Gmm Pfaudler, Tarsons Products, Aeroflex Industries, and Sai Life Sciences.
1] GHCL Textiles: Buy at ₹141, Target ₹152, Stop Loss ₹134
GHCLTEXTIL continues to maintain a strong bullish structure, with the stock sustaining a clear higher-high and higher-low formation since April. The recent price action has accelerated sharply, pushing the stock towards its all-time-high zone near ₹144 and forming a strong bullish candle, reflecting aggressive buying interest. Technically, the stock is trading comfortably above its 20, 50, 100 and 200-day EMAs, confirming a healthy trend alignment and strong underlying support. Momentum remains powerful, with the 14-period RSI at 74.34, placing the stock in overbought territory.
While this indicates aggressive buying momentum, a brief consolidation or minor cooling-off cannot be ruled out at elevated levels. Sustained strength above ₹141 could support further upside towards the ₹152 target, while ₹134 remains the crucial stop-loss and support level.
2] Gmm Pfaudler: Buy at ₹1084, Target ₹1170, Stop Loss ₹1024
GMMPFAUDLR has emerged from a prolonged accumulation phase, completing a rounded-bottom formation and subsequently triggering a powerful bullish breakout from its long-term downtrend. The breakout was accompanied by a significant volume expansion, particularly during the beginning of August, indicating strong participation and improving buyer conviction. The stock has now decisively reclaimed its 20, 50, 100 and 200-day EMAs, creating a highly supportive technical structure and confirming a broader trend reversal. Momentum remains exceptionally strong, with RSI holding around 72.32–75.48, placing the indicator firmly in overbought territory.
Although elevated RSI suggests that a short-term pause or profit booking is possible, it also highlights the strength behind the current breakout. If the stock sustains above ₹1,084, further upside towards the ₹1,170 target remains possible, while ₹1,024 acts as the crucial stop-loss.
3] Tarsons Products: Buy at ₹344, Target ₹375, Stop Loss ₹323
TARSONS is displaying a constructive bullish continuation setup after successfully breaking out from a rounding-bottom accumulation phase. The stock has transitioned into a stronger uptrend, consistently forming higher highs and higher lows, while maintaining its position comfortably above the key moving averages. The current price around ₹344.10 reflects sustained buying interest and improving market participation. Recent upward moves have also been supported by noticeable volume spikes, confirming active accumulation and providing additional strength to the breakout. Momentum remains healthy, with the 14-period RSI at 58.18, indicating positive momentum without entering the overbought zone.
This leaves sufficient room for the stock to extend its current move in the coming sessions. Sustained trading above ₹344 could open the path towards the ₹375 target, while ₹323 remains the crucial stop-loss and downside support level.
4] Aeroflex Industries: Buy at ₹552, Target ₹600, Stop Loss ₹515
AEROFLEX is showing strong bullish momentum and has entered a fresh expansion phase after maintaining a clear higher-high and higher-low structure. The stock closed around ₹552.05, registering a strong 5.07% gain in the latest session and simultaneously trading near its all-time-high zone, highlighting sustained buyer dominance. The recent price action suggests that the stock is attracting strong momentum buying as it continues to move into uncharted territory. The broader trend remains firmly positive, supported by the prevailing bullish price structure. RSI is currently positioned around 67.93, approaching the conventional overbought zone of 70 but still leaving some room for further upside momentum.
While a brief pause cannot be ruled out after such a sharp move, sustained strength could extend the rally towards the ₹600 target. ₹515 remains the crucial stop-loss and key downside support.
5] Sai Life Sciences: Buy at ₹1518, Target ₹1635, Stop Loss ₹1436
SAILIFE continues to maintain a strong and well-defined bullish trend, consistently forming higher highs and higher lows while trading around its all-time-high zone. The prevailing price structure reflects sustained buyer control and indicates that the stock remains in a healthy upward trajectory. Momentum is also supportive, with the 14-period RSI currently at 67.00, showing strong bullish strength while having cooled slightly from the overbought territory above 70. This cooling in RSI can be considered constructive, as it provides some breathing room for the stock to sustain its broader uptrend without immediate exhaustion. However, given the elevated price levels, a brief consolidation or minor dip over the next few sessions cannot be ruled out.
Such dips could provide opportunities to participate in the ongoing trend. If SAILIFE sustains above ₹1,518, the stock could advance towards the ₹1,635 target, while ₹1,436 remains the crucial stop-loss, coinciding with the 20-day EMA support zone.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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