Stock market recap: Domestic stocks staged a strong recovery from intraday lows on 11 September, recouping much of their opening losses as crude oil prices retreated after their recent surge, triggering buying in oil-sensitive stocks. The latest sell-off had also pushed frontline indices into oversold territory, prompting value buying at lower levels.
The Nifty 50 rebounded 0.72% from its intraday low but still ended the session 0.34% lower at 23,398. The Sensex also recovered sharply from its lows but closed 0.16% lower at 74,780.
Two stock recommendations by MarketSmith India:
Buy: Nephrocare Health Services Ltd (current price: ₹765)
- Why it’s recommended: Scale advantage from operating over 500 NephroPlus clinics across India and select international markets, strong economies of scale, high patient retention, asset-light partnerships with leading hospital chains such as Max, Fortis and Care Hospitals, and rapid expansion without heavy real-estate capital expenditure.
- Key metrics: P/E: NA, 52-week high: ₹781.50, volume: ₹25.81 crore
- Technical analysis: Cup-with-handle breakout
- Risk factors: Thin net margins, profitability volatility, high fixed overheads related to specialized medical staff, equipment maintenance, and clinical consumables, sensitivity to patient-volume fluctuations, dependence on government-sponsored healthcare schemes, regulatory pricing controls, and limited ability to pass on rising operating costs.
- Buy: ₹757–769
- Target price: ₹860 in two to three months
- Stop loss: ₹720
Buy: Granules India Limited (current price: ₹909)
- Why it’s recommended: Portfolio shift toward high-margin complex generics and peptides, expansion into CNS and controlled-substance formulations, custom peptide CDMO services following the Senn Chemicals acquisition, backward integration across APIs, PFIs, and finished dosages, industry-leading operating margins, and strong price competitiveness in key export markets.
- Key metrics: P/E: 34.36, 52-week high: ₹914.85, volume: ₹702.97 crore
- Technical analysis: Flat base pattern breakout
- Risk factors: Dependence on key legacy molecules such as paracetamol, ibuprofen, and metformin; vulnerability to price erosion and raw-material cost spikes; exposure to strict USFDA and global regulatory inspections; and potential export disruptions and margin pressure from adverse observations, Form 483s, or import alerts.
- Buy at: ₹900–914
- Target price: ₹1,100 in two to three months
- Stop loss: ₹843
How Nifty 50 performed on 11 September
Indian equities ended lower on 11 September after a volatile session, with Nifty 50 closing at 23,398.10, down 79.70 points or 0.34%, after recovering sharply from an intraday low of 23,231.40. The index touched a high of 23,448.10. Sentiment remained cautious amid elevated crude oil prices, rising U.S. bond yields and persistent geopolitical tensions in West Asia. On the sectoral front, Nifty Realty (-2.70%) and Metals (-2.30%) led the decline, followed by Auto (-0.86%), Oil & Gas (-0.84%) and PSU Banks (-0.62%). On the same time, Private Banks (+0.48%), Media (+0.16%), and IT (+0.11%) provided some support. Market breadth remained distinctly weak, with 1,476 stocks advancing, 2,042 declining, and 120 remaining unchanged, translating into an advance-decline ratio of roughly 0.72:1, signalling broader selling pressure despite Nifty's recovery from the day's lows
Price action has deteriorated following a decisive break below this rising trendline that had guided the recovery since the April lows. The index is also trading below its key short- and medium-term moving averages. At the same time, the sequence of lower highs and lower lows indicates that sellers continue to dominate the near-term trend. Momentum indicators reinforce the bearish setup. The RSI has fallen to 27.22, entering oversold territory and remaining well below its signal average of 38.50. This suggests strong downside momentum, although the oversold reading also raises the possibility of a short-term technical rebound. Meanwhile, the MACD remains firmly negative, with the MACD line below the signal line and the histogram in negative territory.
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.
How did the Nifty Bank perform?
Nifty Bank opened on a negative note at 55,970.15, sharply below the previous close, and initially slipped to an intraday low of 55,699.45. Strong buying interest at lower levels subsequently drove a sustained recovery, taking the index to a high of 56,645.85 before it closed at 56,606.55, gaining 134.60 points, or 0.24%. The index reclaimed to its 100-DMA at 56,533.15 but remained below the 21-, 50-, and 200-DMA. The session formed a strong bullish recovery candle with a lower shadow and a close near the day’s high, indicating demand around 55,700. However, volume expanded to 358.13 million, suggesting an active contest between buyers and sellers near this important technical zone.
RSI stood at 41.05, recovering from the lower region but remaining below its average line at 46.62 and the neutral 50 mark. This suggests that bearish momentum has moderated, although buyers have yet to establish meaningful trend strength. MACD remained below both its signal line and the zero line, while the negative histogram continued to reflect underlying downside momentum. No bullish crossover is visible yet, keeping the broader momentum structure cautious. A sustained RSI move above 50, accompanied by a narrowing MACD histogram, would improve the probability of a stronger recovery. Until then, the rebound should be viewed as an early stabilization attempt rather than a confirmed reversal.
Immediate support is placed around 56,500–56,300, including the 100-DMA, followed by the day’s low near 55,700. A decisive breach of 55,700 could expose the psychological 55,000 level. On the upside, resistance is expected around 57,000–57,300, where the 21-DMA (57,294.08) and 200-DMA (57,371.30) are positioned. The 50-DMA (57,463.55) strengthens the resistance cluster, making 57,300–57,500 a critical supply zone. Nifty Bank may remain volatile and range-bound over the coming sessions unless it decisively crosses this cluster. Stable global cues, softer crude prices, and favourable interest-rate expectations could support recovery, while renewed risk aversion may trigger another test of lower support levels.
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.