Erratic price swings have left market direction unclear, keeping traders on edge. Heading into the final session of the derivatives series, overall market sentiment remains badly damaged and will take time to recover.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
JSWSTEEL (Cmp: ₹1341)
Buy above ₹1345, stop ₹1285, target ₹1475 (Multiday)
- Why it’s recommended: JSW Steel has been on a gradual upward trajectory since June 2026, reflecting steady accumulation as the stock consistently finds support at its Kijun-sen line. A positive Q1 earnings surprise triggered a fresh rally, while recent strong-bodied bullish candles over the past two sessions highlight growing buying interest. With the Relative Strength Index (RSI) steadily trending upward, momentum is building for a potential breakout in the coming weeks. Recommendation: Go Long.
- Key metrics:
- P/E Ratio : 37.15,
- 52-week high: ₹267,
- Volume: 5.61M
- Technical analysis: Support at ₹1225, resistance at ₹1500.
- Risk factors: Chinese overcapacity & cheap imports, global trade barriers & tariffs and foreign exchange (forex) exposure.
- Buy : above ₹1345.
- Stop loss: ₹1265.
- Target price: ₹1475 (2 Months)
ANTHEM (Cmp ₹923.05)
Buy above ₹930, stop ₹870, target ₹1050 (Multiday)
- Why it’s recommended: Following its Q1 earnings, Anthem Biosciences rallied sharply before entering a brief period of sideways consolidation. The stock has now broken out with a strong bullish candle, signaling renewed upward momentum. Broad sector tailwinds in pharma, alongside institutional activity, further support the positive outlook. Given the sustained buying pressure, the stock presents a compelling upside opportunity. Recommendation: Go Long.
- Key metrics:
- P/E: 83.40,
- 52-week high: ₹927,
- Volume: 1.85M.
- Technical analysis: Support at ₹820, resistance at ₹1120.
- Risk factors: Fluctuating Input Costs and Margin Pressures.
- Buy : above ₹930
- Stop loss: ₹870
- Target price: ₹1050 (2 Months)
ECLERX (Cmp: ₹1944)
Buy above ₹1948, stop ₹1865, target ₹2150 (Multiday)
- Why it’s recommended: After a sharp rally in July, eClerx Services consolidated sideways while holding key support along its Tenkan-sen and Kijun-sen lines. A recent high-volume surge pushed the stock above key resistance around ₹1,900, and a decisive close above this level with a long-bodied bullish candle confirms strong buying interest. Supported by solid trading volumes and overall resilience across the IT/BPM space, the stock is well-positioned for further gains. Recommendation: Go Long.
- Key metrics:
- P/E: 36.50,
- 52-week high: ₹2492.98,
- Volume: 390.44K.
- Technical analysis: Support at ₹1400, resistance at ₹1700.
- Risk factors: Client management, talent, technology, and global economic variables.
- Buy : above ₹1948
- Stop loss: ₹1865
- Target price: ₹2150 (2 Months)
Stock market update
Indian equities slipped in a rangebound session on Wednesday, 26 August 26, failing to sustain the previous day’s recovery. The Nifty 50 fell 126.80 points, or 0.52%, to close near the day's low and around the crucial 24,200 mark at 24,207.75. The Sensex also declined 183.15 points, or 0.24%, to finish at 77,472.94. Markets opened flat and gained some momentum during the morning, but afternoon selling pressure erased intraday gains, leaving the benchmarks weaker at the close.
Despite the decline in frontline indices, the broader market outperformed, with the Nifty Smallcap index rising 0.8% while the Midcap index ended marginally lower, reflecting selective buying interest. Persistent concerns over elevated crude prices, inflationary risks, and regulatory uncertainty in banking continued to weigh on sentiment. Overall, the muted close highlighted investor caution at the start of the September F&O series, with traders closely watching support levels near 24,200.
Outlook for trading
Despite the best intentions, the market could not gather enough strength to extend Monday's upward march. We had highlighted 24,200 as an important zone, which continues to hold. While selling pressure has reduced over the last few days, a lack of clarity means more encouraging tailwinds are required to push above 24,300. Steady dip-buying attempts have given market participants reason to maintain a bullish bias for now. However, with no clear future direction, trading should be approached with a neutral stance.
The bulls made a determined push last week above the critical 24,300 mark, but momentum failed to carry the Nifty decisively beyond these levels. Despite strong Q1 earnings performance this time around, market trends got caught in the crossfire of the US-Iran war.
Heightened volatility has kept the Nifty's next directional move uncertain. Chart patterns indicate that the current reaction puts focus on important support around 24,000, which now needs to be defended. Technicals show that the Tenkan-sen median line will continue to cap any recovery attempts, making 24,300 a key level for the upcoming series. A close above this threshold would open up the possibility for further upside. Recent price action shows the index holding above the Ichimoku cloud, which will now act as a defense against the selloff. However, rapid shifts in market mood suggest operators are taking full advantage of the current fluctuations.
The Nifty is struggling to cross the 24,300 zone and will require fresh triggers as selling pressure repeatedly emerges at higher levels. Open Interest (OI) data clearly indicates a divided market, with buying interest emerging at lower levels. The data shows that the Max Pain point has now shifted to 24,300; how this level holds on Thursday will determine the way forward.
We maintain that resistance around 24,300, where steady call writing persists, will cap any bullish bias. To sustain a true recovery into the new series, the index must secure a close above 24,300. Post-expiry, stock-specific action remains dominant, as dip-buying triggered a strong surge. In upcoming sessions, the immediate resistance level for longs to clear is clearly defined at 24,500.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
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.