Persistent sluggishness in the market has fueled growing uncertainty, as broader indices show little interest in moving in either direction. Without a clear catalyst, investor sentiment remains hesitant heading into the remainder of the August derivative series.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
IPCALAB (current price: ₹1,884.60)
Buy above ₹1890, stop ₹1790, target ₹2150 (Multiday)
- Why it’s recommended: Founded in 1949, Ipca Laboratories is a leading Indian pharmaceutical multinational that produces over 350 finished-dosage formulations and 80 APIs. Following a sharp profit-booking phase starting in April 2026, the stock has found firm support at its Tenkan Sen and Kijun Sen lines and is gradually climbing higher. Strong Q1 earnings combined with a broader sector revival are fueling fresh buying interest and establishing a positive upward bias. A surge in volume above the key value area resistance at ₹1,800 points toward an impending breakout, while a rising Directional Index suggests robust upward momentum in the coming weeks. Go long.
- Key metrics:
- P/E Ratio : 38.42
- 52-week high: ₹1941.40,
- Volume: 6.96M
- Technical analysis: Support at ₹1700, resistance at ₹2250.
- Risk factors: Regulatory compliance challenges at manufacturing plants, sharp contractions in volatile institutional export sales, and supply chain disruptions
- Buy : above ₹1890.
- Stop loss: ₹1790.
- Target price: ₹2150 (2 Months)
MOTILALOFS (current price: ₹955)
Buy above ₹960, stop ₹910, target ₹1060 (Multiday)
- Why it’s recommended: Motilal Oswal Financial Services is a premier Indian financial services firm spanning retail and institutional broking, wealth management, private equity, investment banking, and home finance. Following a bullish stretch that began in May 2026, the stock entered a phase of repeated profit booking, mirroring broader weakness across the financial services sector. However, a rounding pattern breakout backed by steady volume indicates that muted quarterly performance is now priced in and a trend reversal is underway. Consider going long.
- Key metrics:
- P/E: 54.56,
- 52-week high: ₹1097,
- Volume: 5.98M.
- Technical analysis: Support at ₹1200, resistance at ₹1500.
- Buy: above ₹960
- Stop loss: ₹910
- Target price: ₹1060 (2 Months)
BALRAMCHIN (current price: ₹655.75)
Buy above ₹658, stop ₹625, target ₹725 (Multiday)
- Why it’s recommended: Balrampur Chini Mills is one of India's largest integrated sugar producers, with operations across sugar, ethanol, industrial alcohol, co-generated power, and agricultural fertilizers. Despite recent volatility, the stock has been making a steady upward recovery. A brief consolidation phase suggests the market has fully absorbed weaker Q1 results, breathing new life into the price action. Resilient reactions off the Tenkan Sen and Kijun Sen lines at higher levels signal sustained bullish momentum. A strong long-bodied green candle would serve as the primary confirmation signal to enter. Go long.
- Key metrics:
- P/E Ratio: 40.44
- 52-week high: ₹664.80
- Volume: 1.4M
- Technical analysis: Support at ₹600, resistance at ₹750.
- Risk factors: Cane pricing structures, ethanol allocations, global glut risk and cash flow constraints.
- Buy : above ₹658.
- Stop loss: ₹625.
- Target price: ₹725.
Stock market update
Indian equities delivered a mixed close on Monday, August 17, as supportive global cues clashed with domestic headwinds. Following a volatile session driven by derivatives expiry, the Nifty 50 slipped 0.12% to 24,366.40, while the Sensex edged up 0.18% to 78,220.15. Weighing on market sentiment were elevated crude prices near $88 per barrel, which fueled renewed fears around inflation and fiscal health.
Banking and financial stocks dropped roughly 0.4% amid uncertainty over the RBI’s draft loan-pricing guidelines, which threaten margins and earnings visibility. In contrast, broader markets saw selective buying, with small-caps and mid-caps advancing 0.4% and 0.3%, respectively.
Tata Motors jumped 3.5% on strong quarterly numbers and robust demand, while wider Tata Group shares stabilized after earlier leadership-driven declines. With 10 of 16 sectors ending in the red, investors clearly favored caution despite positive international sentiment.
Outlook for trading
Market sentiment continues to cool as overarching trends fail to build steady upward momentum. Over recent sessions, price action has remained capped, repeatedly failing to break higher. The formation of lower lows has pushed many market participants to the sidelines.
Looking at the technical setup, however, the trend remains range-bound due to reliable support at lower levels. Even so, the appearance of small-bodied candles highlights growing hesitation, signaling that a decisive trend could break out at any moment.
Expected momentum remains noticeably absent, prompting a re-evaluation of the overall market picture. A sustained directional move is unlikely to take shape without concrete news on the geopolitical front regarding an end to the war. At this juncture, we must carefully reconsider our positioning, as hard-to-read trends will require a highly selective approach.
We are seeing attempts to break out of the recent range-bound movement, which could trigger a short-covering rally today. On the upside, Nifty is eyeing 23,500, which now serves as the immediate resistance level for any recovery. We should monitor how price action develops to determine if pullbacks offer viable buying opportunities.
For now, persistent bearish sentiment continues to stall every recovery attempt. While Nifty struggles to break decisively below 23,200, Open Interest data indicates that 23,300 remains the Max Pain point. Given the prevailing range-bound conditions, it is best to keep trading participation light.
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.