Stock market recap: Benchmark indices recovered on Friday, snapping a four-day losing streak as gains in metal, private banking and oil and gas stocks, along with a firm trend in global markets, lifted investor sentiment.
The 30-share BSE Sensex climbed 362.57 points, or 0.48%, to settle at 76,515.43, with 20 constituents ending higher and 10 lower. The broader NSE Nifty rose 24.25 points, or 0.10%, to 23,897.70.
On the Sensex, Tata Steel, Reliance Industries, Bajaj Finance, Trent, Adani Ports, HDFC Bank, Kotak Mahindra Bank, UltraTech Cement, Titan, Mahindra & Mahindra and Hindustan Unilever were the major gainers.
For the week, domestic equities ended about 1% lower, as elevated global bond yields and expectations of tighter US monetary policy weighed on investor sentiment and foreign flows.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
IFCI [Cmp ₹101.38 - Buy above ₹102, stop loss ₹98, target price ₹111 (Multiday)]
- Why it’s recommended: IFCI Ltd is India's first development financial institution, to provide medium and long-term financial support for industrial and infrastructure growth. Since July, the stock has been rising steadily, indicating accumulation as the prices take support at the Kijun Sen lines and are slowly heading higher. The Q1 earnings surprise has triggered a new wave of upward trajectory, adding to the buying interest. The long body candle thrust that is seen in the last two trading sessions has been attracting attention. With the Average Directional Index inching higher , it can lead to some strong upward move in the coming weeks. Go long.
- Key metrics:
- P/E Ratio : 89.71,
- 52-week high: ₹107.50,
- Volume: 494.56K
- Technical analysis: Support at ₹90, resistance at ₹115.
- Risk factors: Stretched liquidity, weak capitalisation and ongoing asset quality pressures.
- Buy : above ₹102.
- Stop loss: ₹98.
- Target price: ₹111 (2 Months)
PAISALO [Cmp ₹74.10 - Buy above ₹75, stop loss ₹70.50, target price ₹82 (Multiday)]
- Why it’s recommended: Paisalo Digital Ltd is an Indian non-banking financial company (NBFC) that provides technology-driven small business and income-generation loans. After some sedate movement since its Q1 numbers after weeks of ascent, the last week has resulted in the prices tread above the cloud resistance. The strong body candle after the recent sideways drift are indicating a strong thrust higher. However, a strong deal combined with the recent revival in the finance sector helped its upside aspirations. With the prices are reflecting a sustained buying we should consider going long.
- Key metrics:
- P/E: 193.19,
- 52-week high: ₹1963,
- Volume: 826.27K.
- Technical analysis: Support at ₹67, resistance at ₹87.
- Risk factors: High leverage typical of NBFCs, rural and MSME asset quality sensitivity, and premium stock valuation.
- Buy : above ₹75
- Stop loss: ₹70.50
- Target price: ₹82 (2 Months)
GREENPLY [Cmp ₹304.70 - Buy above ₹307, stop loss ₹292, target price ₹340(Multiday)]
- Why it’s recommended: Greenply Industries Ltd is India's leading interior infrastructure and wood-panels manufacturing company. In the few days the sharp decline from the highs saw the prices dip into the cloud region and consolidate. The last weeks thrust from the support region offered by Tenkan Sen and Kijun Sen has helped the prices revive. Also, support from volumes has pushed prices from important support zones around 300. As 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 real estate sector showing strong resilience we consider going long.
- Key metrics:
- P/E: 49.88,
- 52-week high: ₹334.40,
- Volume: 387.22K.
- Technical analysis: Support at ₹280, resistance at ₹370.
- Risk factors: Real estate cyclicality, timber price volatility and foreign exchange & ecb risks.
- Buy: above ₹307
- Stop loss: ₹292
- Target price: ₹340 (2 Months)
How the stock market performed on 4 September
Between 31 August 31 and 4 September, Indian equities displayed a mixed performance, with benchmarks struggling to sustain momentum even as select sectors and midcaps provided pockets of strength. The Sensex and Nifty ended the week marginally lower, extending the cautious undertone that has persisted in recent sessions. The Nifty Bank also slipped modestly, reflecting subdued activity in financials. Sectoral divergence was evident — FMCG and PSU stocks continued to weigh on sentiment, while IT and select private banks offered support.
At the stock level, weakness was broad-based, with several Nifty constituents declining over 2% during the week. NTPC and Shriram Finance remained under pressure, while Adani Enterprises and Kotak Mahindra Bank stood out among gainers, each advancing more than 2%. The midcap segment once again outperformed, with notable strength in SAIL, Glenmark Pharma, LIC Housing Finance, and Laurus Labs. Ather Energy surged after fresh investment inflows, underscoring investor confidence in the EV space. On the flip side, Crompton Greaves Consumer Electricals, Tata Power, Federal Bank, and RVNL were among the key midcap laggards.
Friday’s session brought some respite, as IT stocks spearheaded a recovery. The Sensex rose 331 points to close at 77,265, while the Nifty gained 85 points to settle at 24,176. The Nifty Bank slipped 14 points to 57,496, but the Nifty Midcap index added 34 points to 64,070. Market breadth was balanced, with the advance-decline ratio near parity. IT was the clear outperformer, with the sectoral index climbing over 3%. All five top Nifty gainers — TCS, Tech Mahindra, Infosys, HCL Technologies, and Wipro — came from the IT pack, highlighting the sector’s leadership role.
Outlook for trading
Rally attempts continue to dissipate some spirit as the market tries to carve out a bullish possibility. The next series began with a positive frame of mind but the trends are still circumspect and show limited market participation. Nifty now finds it a challenge seeks to contest the 24300 mark while Bank Nifty aims to react from 58000 amidst the air of uncertainty. Volatility is now part of the ever-changing market scenario as the sentiment keeps changing. Risk management is critical, as the lack of clarity is greater than ever.
As of early September, 30–35 NSE 500 stocks were trading at or near their 52‑week lows, reflecting sectoral weakness in FMCG, insurance, and select financial names. This tells us the extent of damage that has been caused to holdings even in quality stocks. Even in the Nifty, there is only a very small bunch of stocks that are still holding up with majority of the others trading near the lows of the recent 6-month range.
The Nifty Daily charts clearly reveals the rally seen few weeks ago is clearly witnessing exhaustion as the index is slipping into consolidation with formation of long body negative candle that is dragging the markets lower. The steady decline seen here is resulting in the market losing its strength. We observe that the momentum to the downside is gaining strength and possibility of levels around 23800 could be in danger in the coming week. Currently we don’t have any market moving news flow. Perhaps things may look up in the second half of this month with the onset of monsoon. Till then it’s a very stock specific action so it’s better to play the cards with an air of caution. Play it for a rally and that too a limited one for now. This means, participation with profit taking.
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.