Stock market recap: On Tuesday, Indian equities staged a strong rebound, closing in positive territory after a volatile session marked by monthly derivatives expiry.
The Nifty 50 recovered from an intraday low of 24,115.45 to finish 115.50 points higher at 24,334.55, firmly above the 24,300 mark, while the Sensex gained 286.98 points or 0.37% to settle at 77,656.09. Final-hour buying, aided by easing crude oil prices and a firmer rupee, lifted sentiment, with notable gains in pharma, media, and PSU banking stocks.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
HYUNDAI (Cmp 2232.50)
- Why it’s recommended: Hyundai Motor India Limited (HMIL) is the second-largest car manufacturer and a leading passenger car exporter in India. Since June 2026, the stock has been making a slow and steady upward trajectory, indicating accumulation, as the prices take support at the Kijun Sen lines and are slowly heading higher. The surprise Q1 numbers have triggered a new wave of upward trajectory, and the revival is adding to the buying interest that is generating an upward bias. The long body candle thrust that is seen in the last two trading sessions has been attracting attention. With the Relative Strength Index firmly inching higher, it can lead to some strong upward move in the coming weeks. Go long.
- Key metrics:
- P/E Ratio: 37.15
- 52-week high: ₹267
- Volume: 5.61M
- Technical analysis: Support at ₹225, resistance at ₹350.
- Risk factors: Supply Chain and Costs, Concentration and Demand and Group Conflicts.
- Buy: above ₹2237.
- Stop loss: ₹2137.
- Target price: ₹2455 (2 Months)
ZYDUSWELL (Cmp 525.45)
- Why it’s recommended: Zydus Wellness is a leading Indian consumer goods company that specializes in health, nutrition, and skincare products. The recent decline post its numbers saw the prices tread into important support zones to stage a revival. The negative Q1 numbers have been absorbed until this quarter the prices got severely impacted. However, a strong deal combined with the recent revival in the Real Estate sector helped its upside aspirations. With the prices are reflecting a sustained buying we should consider going long. The drop into value support region around 490-500 with some steady volumes that is indicating a potential decline in store. Consider going long.
- Key metrics:
- P/E: 433.56,
- 52-week high: ₹610.95,
- Volume: 253.13K.
- Technical analysis: Support at ₹820, resistance at ₹1020.
- Risk factors: Fluctuating Input Costs and Margin Pressures.
- Buy: above ₹528
- Stop loss: ₹497
- Target price: ₹585 (2 Months)
COCHINSHIP (Cmp 1518.50)
- Why it’s recommended: Cochin Shipyard Limited is India's largest shipbuilding and maintenance facility, headquartered in Kochi, Kerala. After testing important resistance zones around 680 the prices have finally given a closing above it with a long body candle suggesting a strong bullish bias. We can see now that the strong thrust on the back of volumes can augur well for the prices. With the prices are reflecting a sustained buying and the Defence sector showing strong resilience we consider going long.
- Key metrics:
- P/E: 67.49,
- 52-week high: ₹1979.60,
- Volume: 973.46K.
- Technical analysis: Support at ₹1400, resistance at ₹1700.
- Risk factors: Execution & timeline delays, negative operating cash flow and policy & budget vulnerability.
- Buy : above ₹1520
- Stop loss: ₹1450
- Target price: ₹1660 (2 Months)
Stock Market Recap
On Tuesday, Indian equities staged a strong rebound, closing in positive territory after a volatile session marked by monthly derivatives expiry. The Nifty 50 recovered from an intraday low of 24,115.45 to finish 115.50 points higher at 24,334.55, firmly above the 24,300 mark, while the Sensex gained 286.98 points or 0.37% to settle at 77,656.09. Final-hour buying, aided by easing crude oil prices and a firmer rupee, lifted sentiment, with notable gains in pharma, media, and PSU banking stocks.
Broader indices were mixed, as the Nifty Midcap rose 0.5% while the Smallcap index ended marginally lower. Adani Enterprises, Interglobe Aviation, Max Healthcare, Apollo Hospitals, and Adani Ports led the rally, while Cipla, HDFC Life, Hindalco, ONGC, and Coal India declined. Sectorally, consumer durables, infra, IT, media, pharma, and PSU banks advanced, while energy, metals, and private banks saw selling. The recovery from lower levels signaled near-term strength, with support at 24,200 and potential upside towards 24,500.
Outlook for Trading
The lead-up to the September series has been quite demanding, as large-scale volatility has left every trader wondering whether there is more steam to the upside. Despite regular gaps that threaten the sentiment, the hope of bullishness is seen holding. As markets have been chopping and turning, they have not given complete clarity yet. The situation remains dicey, as we arenot out of the woods yet.
However, the bullish revival signs that emerged on the monthly expiry is clearly playing in favor of the bullish camp. At the moment, there is continued interest in the Nifty Mid and Small-cap space. So, one is a bit wary of the improvement in breadth because their absence will drag the quest for a revival of Nifty levels ahead.
The strong closing on Tuesday has now paved the way for the trends ahead in the next series. Currently, the trends are once again poised to move towards a new high. Despite the trends showing spurts of bullishness, the challenge shall continue to remain to reach the summit in the coming week. We observed that the decline tested the support levels, and then ended the week rather strongly. Now, sentiment is setting up for a positive bias. When the market rises, there are enough people to keep calling the top. However, we need to tread carefully.
We continue to maintain that the dip remains a buy opportunity, and one should hold on to the bullish bias as the closing above 23300 could now be the renewed support zone for the revival that may emerge in the coming sessions. In the last two sessions, we have observed that the selling kept a lid on the buying interest on dip, fuelled a strong surge. In coming sessions, we now have a clear zone defined for longs where Nifty would look at 23500 as the immediate resistance to breach.
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.