Buy or sell stocks: The Indian stock market closed in the red on Thursday, August 27, amid mixed global signals and rising oil prices as geopolitical uncertainty continued. The Sensex declined 539 points, or 0.70%, to settle at 76,933.59, while the Nifty 50 fell 117 points, or 0.48%, to close at 24,090.85.
Broader markets also came under selling pressure, with the Nifty Midcap 150 slipping 0.10% and the Nifty Smallcap 250 declining 0.12%. Meanwhile, the Nifty Bank fell 0.47% to close at 57,509.95.
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Nifty 50
Nifty 50 closed at 24,090.85, down 116.90 points (-0.48%), extending its decline for the second straight session. Despite opening higher by around 70 points, the index failed to sustain the gains and gradually weakened to close at the day’s low, indicating persistent selling pressure. RSI at 43.47 versus its average of 50.10 highlights weakening momentum. The immediate support is placed at 23,900–23,980, followed by 23,800, while 24,240–24,300 remains the immediate resistance zone.
“The derivatives setup remains relatively supportive, with PCR at 1.18 and Put OI concentrated around 24,200–24,000, offering some cushion on declines, while Call OI around 24,300–24,500 indicates overhead supply. India VIX increased to 11.07, reflecting a rise in volatility. The 24,000 mark remains the key make-or-break level; holding above it could encourage a recovery, whereas a decisive break below may extend weakness towards 23,800–23,600. A sustained move above 24,300 would be required to improve the near-term setup,” said Sumeet Bagadia, Executive Director at Choice Broking.
Bank Nifty
Bank Nifty closed at 57,509.95, down 273.80 points (-0.47%), after failing to sustain an initial gain of around 200 points. The index rose to 58,012.40 before facing selling pressure and declined steadily to close at the day’s low, signalling weakness towards the close. The formation of a Bearish Engulfing candlestick on the daily chart further indicates increasing selling pressure. Immediate support is placed at 57,000–57,275, while 57,800–58,000 remains the key resistance zone.
“Although Bank Nifty continues to trade above its broader rising trendline, a sustained break below 57,000 could weaken the prevailing structure and trigger further profit booking. On the upside, reclaiming and holding above 58,000 would be necessary to revive positive momentum. With both indices witnessing rejection from higher levels and closing near their lows, the near-term setup remains cautious, with 57,000 acting as the crucial level for Bank Nifty,” Bagadia added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Friday, 28 August: Wonderla Holidays, Orkla India, Bharat Heavy Electricals, Adani Power, and Global Health.
1] Wonderla Holidays: Buy at ₹542, Target ₹585, Stop Loss ₹519
Wonderla is showing strong bullish price action, currently trading around ₹542.25 after gaining 5.08% and forming a decisive green candle. The stock has broken above a multi-week consolidation range, indicating renewed buying interest and a potential continuation of the broader uptrend. On the technical front, price has cleanly moved above the key 200-day EMA, which was previously acting as a major resistance zone. This breakout can now turn the 200-day EMA into an important dynamic support level. Sustained trading above ₹542 could attract further momentum and strengthen the bullish setup.
On the downside, ₹519 serves as a crucial support and stop-loss level, coinciding closely with the 200-day EMA. If the stock sustains above the breakout zone, it could move towards the target of ₹585.
2] Orkla India: Buy at ₹606, Target ₹650, Stop Loss ₹575
Orklaindia is showing signs of a strong short-term recovery, currently trading around ₹606 after gaining 4.52%. The stock has rebounded sharply from its recent local bottom near ₹541.35, indicating renewed buying interest after the corrective phase. Price is now testing a major descending trendline that has capped previous rallies since late May. A sustained daily close above this resistance could provide confirmation of a minor trend reversal and open the door for further upside. Momentum has also improved significantly, with the RSI rising sharply to 67.53, reflecting powerful near-term buying strength while approaching the overbought zone.
On the downside, ₹575 acts as an important support and stop-loss level. If ORKLAINDIA successfully breaks and sustains above the trendline, the stock could advance towards the target of ₹650.
3] Bharat Heavy Electricals: Buy at ₹434, Target ₹470, Stop Loss ₹470
BHEL continues to maintain a strong bullish structure, currently trading around ₹433.95 near its recent swing highs after recovering significantly from its April lows. The stock has been consolidating at higher levels, indicating that buyers are comfortably absorbing supply near the resistance zone. Technically, price is trading well above the 50-day, 100-day and 200-day EMAs, confirming a strong structural uptrend. The 20-day EMA around ₹415 is acting as immediate dynamic support and also provides a key reference for the trade setup. Momentum remains healthy, with RSI at approximately 61.85, indicating sustained buying strength while still leaving room for further upside before reaching overbought territory.
As long as BHEL sustains above ₹415, the stock can continue its upward move towards the target of ₹470.
4] Adani Power: Buy at ₹215, Target ₹233, Stop Loss ₹205
Adani Power is attempting a bullish reversal after spending several weeks moving within a corrective downward channel. The stock is currently testing a crucial descending resistance trendline, making the present zone important for a potential breakout. A clean and sustained daily close above this trendline would signal a minor trend reversal and could attract fresh buying interest. Momentum indicators are also supporting the recovery, with RSI reading around 59.04 and maintaining a positive upward slope. This indicates improving bullish momentum without the stock entering an overbought zone.
On the downside, ₹205 is an important support and stop-loss level, closely coinciding with the 100-day EMA, making it a key technical reference. If ADANIPOWER successfully breaks the descending trendline and sustains above it, the stock could move towards ₹233.
5] Global Health: Buy at ₹1509, Target ₹1625, Stop Loss ₹1444
Global Health (Medanta) continues to exhibit a strong and well-defined bullish trend, consistently forming higher highs and higher lows while respecting its upward-sloping trendline from the April swing low. The stock is trading comfortably above its 20-day, 50-day, 100-day and 200-day EMAs, confirming broad-based strength across multiple time frames. The steep upward slope of the fast EMA further reflects active momentum and sustained buying interest. The latest daily candle is particularly encouraging, closing near the day’s high at ₹1,508.90 after gaining 3.43%, highlighting strong buying through the session. Importantly, the stock has also traded at fresh all-time-high levels, confirming a strong breakout environment.
As long as the stock sustains above ₹1,444, the bullish structure remains intact, with potential upside towards the target of ₹1,625.
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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