Stock market recap: The Sensex and Nifty 50 suffered significant losses on Tuesday, 8 September, declining for a second consecutive session.
The Sensex fell 555 points, or 0.73%, to close at 75,577.58, while the Nifty 50 declined 144 points, or 0.61%, to settle at 23,635.10.
ICICI Bank, Axis Bank and UltraTech Cement were the worst hit on the Sensex, while SBI Life, ICICI Bank and Axis Bank led declines on the Nifty.
However, mid- and small-caps outperformed. The Nifty Midcap 150 rose 0.12%, while the Nifty Smallcap 250 gained 0.23%.
Among sectors, the Nifty Bank fell 0.54%, while Nifty Financial Services and Nifty Private Bank declined 0.93% and 0.98%, respectively. IT, PSU Bank, Realty, Consumer Durables, and Oil and Gas also ended lower.
Over the two sessions, the Sensex has lost 938 points, or 1.2%, while the Nifty 50 has declined 1.1%
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
TDPOWERSYS [Cmp ₹768.80 - Buy above ₹770, stop loss ₹730, target price ₹850 (Multiday)]
- Why it’s recommended: TD Power System Designing and manufacturing custom AC generators (up to 250 MVA) and electric motors serving conventional and renewable energy, marine, railways, and industrial applications. Since August, the stock has been making slow and steady upward trajectory indicating accumulation as the prices take support at the Kijun Sen lines and are slowly heading higher. The strong thrust seen post its numbers indicates some steady 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 firmly inching higher , it can lead to some strong upward move in the coming weeks. Go long.
- Key metrics:
- P/E Ratio : 94.44,
- 52-week high: ₹798.68,
- Volume: 2.09M
- Technical analysis: Support at ₹700, resistance at ₹925.
- Risk factors: Operational scaling, dependence on export markets, and sensitivity to macroeconomic trends.
- Buy : above ₹770.
- Stop loss: ₹730.
- Target price: ₹850 (2 Months)
LALITHAA [Cmp ₹318.75 - Buy above ₹321, stop loss ₹303, target price ₹354 (Multiday)]
- Why it’s recommended: Lalithaa Jewellery Mart Ltd is a prominent, South India-focused jewellery retail company known for its value-driven pricing and massive retail spaces. After some strong upward drift seen from march the stock was in a sideways drift after some profit booking. Post its debut the strong performance numbers pushed the prices into consolidation after weeks of ascent. With a strong push seen in the last few days forming a base around 270 the last week we can expect the upward momentum to continue. As potential for sustained buying emerges, we should consider going long.
- Key metrics:
- P/E: 51.61,
- 52-week high: ₹970,
- Volume: 1.38M.
- Technical analysis: Support at ₹270, resistance at ₹380.
- Risk factors: Heavy gold price volatility without hedging, intense regional concentration in South India, and negative operating cash flows driven by high working capital needs.
- Buy : above ₹321
- Stop loss: ₹303
- Target price: ₹354 (2 Months)
NEPHROPLUS [Cmp ₹744.10 - Buy above ₹748, stop loss ₹710, target price ₹825(Multiday)]
- Why it’s recommended: Nephrocare Health Services Ltd, operating under the brand name NephroPlus, is Asia's largest dialysis network, providing specialized kidney care and dialysis services. In the few days the sharp decline from the highs saw the prices dip into the cloud region and consolidate. The last session thrust from the making a rounding pattern to move above recent set of resistances around 720 has helped the prices revive. Also, support from volumes has pushed prices higher. 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.
- Key metrics:
- 52-week high: ₹767.95,
- Volume: 659.01K.
- Technical analysis: Support at ₹680, resistance at ₹810.
- Risk factors: Corporate/financial risks as an expanding healthcare network, and clinical risks regarding patient safety at its dialysis centers.
- Buy : above ₹748
- Stop loss: ₹710
- Target price: ₹825 (2 Months)
How the stock market performed on 8 September
On 8 September, Indian benchmarks extended their decline for a second straight session, with the Nifty slipping to a near three‑month low amid heavy selling in IT, oil & gas, and banking stocks. After a weak start, the market attempted a brief rebound but failed to hold gains as profit‑booking intensified. The Nifty touched an intraday low of 23,623 before closing at 23,635, down 144 points, while the Sensex fell 555 points to 75,577. Broader indices outperformed, with midcaps and smallcaps ending marginally higher.
Top losers included ICICI Bank, Axis Bank, SBI Life, L&T, and UltraTech Cement, while Bharat Electronics, ONGC, HUL, Eicher Motors, and Adani Ports gained. Sectorally, private banks, oil & gas, and IT dragged, while media, pharma, and FMCG posted modest gains. Over 200 stocks hit 52‑week highs, while more than 100 touched fresh lows, highlighting divergent market trends.
The rupee weakened, closing at 94.82 per dollar. New listings saw Deepa Jewellers debut strongly, while Rays of Belief ended lower after a flat start.
Outlook for trading
The only thing to do at such times is to take a slightly detached view and follow the bigger trend. For this one has to develop a bit of a patience and also have conviction on the item being traded or invested. Volatile days can surely test those convictions and patience but that is the stuff that good trading is made of. Since the larger trend still remains undisturbed, one can continue with a bullish bias in select stocks and stick with that.
Despite the decline prices of mid and small cap stocks continue to remain attractive at current levels and this is now inviting those who missed a good opportunity to re-enter the market. No doubt the sentiment is a bit affected due to the decline in the global markets the trends however seem to have stalled. But one may also attribute that to year end considerations and one now looks to reinstatement of the fund flow towards markets from domestic sources during the current quarter. Fund flow is an important element of the ongoing bull phase. Anything that upsets it can create headwinds for the bulls.
The weekly candle is positive for Nifty while Bank nifty continues to rethink on the bullish prospects. The breadth in the recovery was decent as both small and midcap indices too show a positive candle for the week. One may therefore expect the range bound scenario to continue in the coming week and Nifty to face challenges around 24,000-24,100 region.
There is no attempt being made at covering the shorts , meanwhile the lack of buying interest is keeping the lid on the recovery scenario. With the continued attempt to head into a weak zoneout of a ranging action and a possible short covering action may emerge today. Now, we can observe that Nifty would look at 23650 which has now turned into next set of supports that we have been mentioning for the recovery we can look at how to use every pullback to buy into.
Once again, we are heading into on a very dicey zone as we are now noticing a more confirmed signal from see Nifty as it has moved below 24,000 decisively the Open Interest data retains that 23,650 as the Max Pain Point that will come into play. With bearish market in play, its best to tone down the participation or shift to the mid and small cap candidates.
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.