Stock market recap: Indian equities snapped their three-session losing streak on Thursday, ending marginally higher in a choppy session coinciding with the weekly derivatives expiry. Nifty 50 rose 46.30 points, or 0.20%, to close at 23,477.80, while Sensex gained 235.44 points, or 0.31%, to settle at 74,999.67.
Banking and oil & gas led the recovery, while capital goods, metals, healthcare, and FMCG ended in the red, keeping gains modest. Brent crude held above $101 per barrel, with mixed signals on the US-Iran conflict's trajectory keeping sentiment cautious even as some reports suggested a potential de-escalation later in the year.
On the domestic front, mutual fund SIP inflows hit a record ₹32,297 crore in August, with small-cap funds drawing nearly ₹8,000 crore, underscoring resilient retail participation. Despite the index-level bounce, market breadth stayed weak, with 1,466 stocks advancing, 2,079 stocks declining, and 121 remaining unchanged, pointing to continued underlying caution beneath the headline recovery. With crude prices and geopolitical developments still fluid, investors are likely to stay watchful in the sessions ahead.
Two stock recommendations by MarketSmith India:
Buy: Paisalo Digital Limited (current price: ₹83)
- Why it’s recommended: Scalable co-lending and joint-lending partnerships with major public-sector banks such as SBI and fintech platforms, rapid AUM growth with lower capital deployment and reduced balance-sheet risk, AI-driven underwriting, extensive multi-state branch and CSP network, and cost-effective customer acquisition across underserved microfinance and MSME segments.
- Key metrics: P/E: 28.85, 52-week high: ₹83.50, volume: ₹173.58 crore
- Technical analysis: Consolidation base breakout
- Risk factors: Unsecured microfinance exposure, vulnerability to regional economic shocks, poor monsoons and local political interventions, asset-quality and collection-efficiency risks, elevated debt-to-equity leverage, promoter share pledging, negative operating cash flows despite reported accounting profits, and structural liquidity and governance risks.
- Buy: ₹82–83
- Target price: ₹98 in two to three months
- Stop loss: ₹76
Buy: Acutaas Chemicals Limited (current price: ₹3,459)
- Why it’s recommended: Expansion into high-value frontier chemistries, scaling first-in-India niche verticals such as semiconductor-grade photoresist chemicals and EV electrolyte additives, high-margin CDMO pharmaceutical intermediate contracts, USFDA- and PMDA-approved facilities, extensive process patents, advanced flow-chemistry capabilities, and deeper integration into global pharmaceutical and industrial supply chains.
- Key metrics: P/E: 68.52, 52-week high: ₹3,740.00, volume: ₹341.64 crore
- Technical analysis: Trendline Breakout
- Risk factors: Execution and ramp-up challenges in greenfield projects, technology-transfer and delay risks involving South Korean semiconductor ventures and domestic electrolyte-additive facilities, dependence on key starting materials, raw-material price volatility, long inventory cycles, margin compression, and working-capital lock-ups.
- Buy at: ₹3,424–3,476
- Target price: ₹4,300 in two to three months
- Stop loss: ₹3,190
Nifty 50 recap
Indian equities ended modestly higher on 10 September 2026, snapping a three-session losing streak, although weak market breadth highlighted continued caution. Nifty 50 gained 46.30 points, or 0.20%, to 23,477.80, after trading between 23,380.10 and 23,494.95, while Sensex rose 138.36 points to 74,902.59. Financials provided support, with Nifty Financial Services gaining 0.53%, PSU Bank (+0.39%), and Private Bank (+0.34%). At the same time, Metal (-0.65%), Pharma (-0.51%), and Auto (-0.41%) lagged. Power Grid, Tech Mahindra, and Bharti Airtel were among the key large-cap gainers. On the other hand, Tata Steel, IndiGo, and ICICI Bank weighed on the benchmarks.
Despite the index closing on a positive note, overall breadth remained distinctly weak. A total of 1,466 stocks advanced, 2,079 declined and 121 remained unchanged, resulting in an advance-decline ratio of about 0.71. This suggests that selling pressure persisted beyond index heavyweights. Elevated crude prices amid Middle East tensions and higher U.S. Treasury yields continued to temper risk appetite.
Price action remains decisively below the key short-, medium-, and long-term moving averages, reflecting sustained selling pressure and a lack of meaningful trend-reversal signals. More importantly, the index has broken below the rising trendline that had guided the recovery since the April lows, indicating deterioration in the broader price structure. The recent sequence of lower-highs and lower-lows further reinforces the prevailing bearish bias, although the latest session showed some stabilization after the recent decline.
Momentum indicators remain weak: the RSI has slipped to 28.94, entering oversold territory and suggesting that the decline has become stretched in the near term. However, an oversold reading alone does not confirm a reversal, and a recovery in RSI would be required to signal improving momentum. The MACD remains firmly negative, with the MACD line below its signal line and the histogram in negative territory, confirming continued downside momentum.
Nifty 50 closed decisively below the key 23,600–23,500 zone, reflecting continued weakness in the near-term price structure. On the downside, a sustained and decisive break below 23,300–23,250 could intensify bearish momentum and extend the ongoing corrective move toward 23,000. Conversely, any near-term recovery is likely to face initial resistance in 23,800–24,000.
Nifty Bank recap
Nifty Bank opened on a negative note at 56,262.75 but attracted buying interest after testing the intraday low of 56,231.85. The index subsequently advanced to a high of 56,575.15 before closing at 56,471.95, gaining 176.40 points, or 0.31%. The recovery helped the index finish above its opening level, although it remained marginally below the 100-SMA (56,540.79) and substantially below the 21-, 50-, and 200-SMA. The session formed a small bullish candle with upper and lower shadows, indicating a tentative rebound following recent weakness rather than a confirmed reversal. Volume stood at 182.77M. Sustained buying above the day’s high is required to strengthen the recovery, while failure to hold 56,200 could invite renewed selling pressure.
The RSI stood at 38.83, below its moving average of 47.30, indicating that momentum remains weak despite the day’s modest rebound. The indicator is above oversold territory, leaving room for further downside if selling pressure resumes. The MACD remained below its signal line and in negative territory, while the negative histogram continued to indicate bearish momentum. No meaningful bullish divergence is visible on the daily chart. The combination of a subdued RSI, a bearish MACD setup, and price trading below the major averages suggests that the broader technical structure remains fragile. A stronger momentum reversal would require the RSI to reclaim 50 and the MACD to register a bullish crossover.
Immediate support is placed near 56,230–56,000, encompassing the intraday low and a psychologically important level. A decisive break below this zone could expose 55,500, followed by 55,000. On the upside, 56,540–56,575 forms the first resistance band around the 100-SMA and the session high. Stronger resistance lies between 57,340 and 57,490, where the 21-, 200-, and 50-SMAs are closely positioned. The near-term outlook remains cautious while the index trades below these averages. Higher crude oil prices, rupee weakness, and subdued domestic market sentiment may restrict a sustained recovery. A close above 56,575 could extend the rebound, but a convincing trend reversal would require the index to reclaim 57,500 with stronger market participation.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
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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.