The Sensex gained 304 points, or 0.38%, to end at 80,539.91, while the Nifty 50 added 132 points, or 0.54%, to settle at 24,619.35. Mid- and small-cap stocks outperformed, with the BSE Midcap rising 0.56% and the BSE Smallcap climbing 0.58%.
Amid this, here are two stock recommendations by MarketSmith India for 14 August:
Buy: Polycab India Ltd (current price: ₹ 6,966)
- Why it’s recommended: Strong recent financial performance, major government contract, market leadership and diversification, order book, and growth initiatives
- Key metrics: P/E: 45.64, 52-week high: ₹ 7,605.00, volume: ₹177.35 crore
- Technical analysis: Reclaimed its 21-DMA
- Risk factors: Raw material price volatility, intense competition, and pricing pressure, segmental and execution risks, corporate governance, and compliance concerns
- Buy at: ₹ 6,966
- Target price: ₹ 7,790 in two to three months
- Stop loss: ₹ 6,590
Buy: NMDC Ltd (current price: ₹72.50)
- Why it’s recommended: Leading domestic iron ore producer
- Key metrics: P/E: 9.51; 52-week high: ₹95.45; volume: ₹ 241.32 crore
- Technical analysis: downward sloping trendline breakout
- Risk factors: Commodities market dependence, exposure to pricing and auction dynamics in mine allocation
- Buy at: ₹72–73
- Target price: ₹77 in two to three months
- Stop loss: ₹ 70
Nifty 50 recap | 13 August
Indian equity benchmarks closed higher on Wednesday, recovering from yesterday’s losses, as investors cheered a broad-based rally fuelled by positive global cues and softer domestic inflation data.
The Sensex gained 304 points to settle at 80,539, while the Nifty 50 added 131 points, finishing above the psychologically important 24,600 level at 24,619.
US retail inflation moderated to 0.2% month-on-month in July, boosting expectations of a Federal Reserve rate cut in September. At home, India’s retail inflation eased to an eight-year low of 1.55% in July, providing an additional tailwind for equities. Market breadth favoured gains, with 1,685 stocks advancing on the NSE against 1,287 declining.
Technical outlook
On the charts, Nifty sustained above its 100-day moving average (DMA) and the key 24,600 mark, signalling near-term stability. The relative strength index (RSI) has rebounded from oversold territory to 44, though it remains constrained by a downward-sloping trendline, suggesting limited upside momentum. Meanwhile, the MACD continues to show a bearish configuration, trading below both its signal line and the zero axis, highlighting persistent negative pressure in the broader trend.
According to O’Neil’s market direction methodology, the index is in an “Uptrend Under Pressure,” as it breached its 50-DMA and the distribution day count rose to six. Nevertheless, Nifty’s close above 24,600 and support at the 100-DMA, accompanied by improving momentum indicators, reflect strengthening underlying price action and an ongoing recovery attempt.
Key levels to watch
A sustained move above 24,600 would be a constructive technical signal, potentially opening the path to the 24,800-24,850 resistance zone. On the downside, the recent swing low at 24,330 serves as critical support; a decisive break below could invalidate the current recovery and reignite selling pressure, with subsequent support levels at 24,200 and 24,000.
Nifty Bank performance | 13 August
On Wednesday, Nifty Bank opened with a gap-up, briefly touching an intraday high of 55,340 in the early minutes of trade. However, it was unable to sustain these levels and quickly gave up initial gains. The session remained volatile, with the index oscillating in a narrow range as participants engaged in selective buying and profit booking.
Despite the swings, Nifty Bank recovered to close in positive territory, forming a bullish candlestick pattern and successfully defending its 100-day moving average (DMA), a key support zone. The index traded between 55,340.05 and 55,026.95 before settling at 55,181.45.
Technical indicators
The relative strength index (RSI) moved sideways during the session and currently stands at 39, reflecting subdued price momentum. Meanwhile, the MACD continues to show a negative crossover, signalling persistent weakness. Collectively, these indicators point to a short-term bearish bias, suggesting caution for traders. According to O’Neil’s methodology of market direction, Bank Nifty is in an “Uptrend Under Pressure,” underscoring a fragile backdrop where selective participation and disciplined risk management are essential.
Key levels to watch
Holding above the 100-DMA for the fourth consecutive session indicates resilience. Sustained buying from current levels could push the index toward immediate resistance at 56,200. A decisive breakout above this zone may accelerate bullish momentum, opening the door for further near-term gains. On the downside, 55,000 remains critical support; a breach below this level could trigger deeper declines and heightened volatility, requiring vigilance from traders in the sessions ahead.
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).
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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.
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