Stock market update: Indian benchmarks pared early losses to close only marginally lower on Friday, extending their losing streak to a fourth straight session. Nifty 50 slipped 29.85 points, or 0.12%, to close at 24,366.00, while Sensex eased 47.82 points, or 0.06%, to settle at 78,032.14 after falling as much as 300 points at the open.
The prolonged US-Iran standoff continued to weigh on sentiment, with Washington signalling that it could maintain an indefinite naval blockade on Iran. This kept Brent crude near $87 per barrel, up around 4% for the week. Domestically, wholesale food inflation rose to a 19-month high of 6.6% in July, while foreign investors extended their selling for a second consecutive session.
Bharti Airtel, Apollo Hospitals, Adani Enterprises, and Adani Ports were among the day's biggest gainers. Meanwhile, Tata Motors' passenger vehicle arm, Hindalco, and ICICI Bank led the decliners, as PSU Banking and IT stocks remained under pressure. Broader markets underperformed the benchmark indices, with the small-cap index emerging as the weakest. Market breadth remained clearly negative, with 1,479 advancing, 1,855 stocks declining, and 127 remaining unchanged on the NSE.
Two stock recommendations by MarketSmith India:
Buy: Bharat Heavy Electricals Limited (current price: ₹423)
- Why it’s recommended: Strong power equipment franchise, large order book visibility, beneficiary of power sector capex, strong government backing, thermal power ordering revival, nuclear power opportunities, diversified engineering capabilities, opportunities in railways and defence, strong domestic manufacturing base, high entry barriers, improving execution potential, beneficiary of infrastructure spending, established customer relationships, operating leverage potential, and long-term power demand growth.
- Key metrics: P/E: 60.12, 52-week high: ₹446.50, volume: ₹482.40 crore
- Technical analysis: Trendline Breakout
- Risk factors: Project execution delays, working capital-intensive business, dependence on government orders, slow customer payments, margin pressure on projects, high thermal power exposure, raw material cost volatility, order inflow volatility, PSU-related operational constraints, intense industry competition, regulatory and policy risks, capacity utilization risk, supply chain disruptions, earnings recovery execution risk, and valuation risk after re-rating.
- Buy: ₹419–425
- Target price: ₹500 in two to three months
- Stop loss: ₹398
Buy: Gujarat Ambuja Exports Limited (current price: ₹172)
- Why it’s recommended: Strong agro-processing presence, diversified product portfolio, leadership in maize processing, integrated manufacturing operations, strong domestic customer base, growing export opportunities, beneficiary of food processing growth, capacity expansion potential, healthy balance sheet, strong cash flow potential, diversified end-user industries, value-added product opportunities, established manufacturing scale, long-term food demand growth, operational efficiency potential.
- Key metrics: P/E: 18.62, 52-week high: ₹184.03, volume: ₹22.55 crore
- Technical analysis: Double-Bottom Breakout
- Risk factors: Maize price volatility, agricultural commodity cycle risk, dependence on crop availability, weather and monsoon risks, margin pressure from input costs, working capital requirements, export demand fluctuations, currency fluctuation risk, government policy changes, intense industry competition, inventory price risk, energy cost volatility, food safety and compliance risks, capacity utilization risk, and earnings volatility from commodity prices.
- Buy at: ₹170–173
- Target price: ₹196 in two to three months
- Stop loss: ₹162
How the Benchmark Index Performed on 14 August
Indian equities ended a volatile session marginally lower on Friday, with Nifty 50 closing at 24,366.00, down 29.85 points or 0.12%, after trading between 24,296.80 and 24,405.20. The index recovered sharply from its intraday low and briefly moved above the previous close during afternoon trade, but late-session selling capped gains. Broader market breadth remained weak, with 1,479 stocks advancing, 1,855 stocks declining, and 127 remaining unchanged. This translated into an advance-decline ratio of roughly 0.80, indicating that underlying sentiment was weaker than the headline index suggested.
On the sectoral front, Media (+0.96%) and Consumer Durables (+0.76%) outperformed. Meanwhile, Pharma (-0.90%), Metal (-0.71%), Auto (-0.63%), and PSU Bank (-0.57%) led declines. Private Banks were comparatively resilient. From a technical perspective, Nifty’s recovery from around 24,300 establishes this zone as an immediate support area, while 24,400–24,405 remains the first resistance area.
Nifty 50 witnessed intraday volatility but staged a meaningful recovery from lower levels, indicating buying interest on declines. Notably, the index recovered after taking support near the confluence of its downward-sloping trendline and the 21-day moving average (DMA), reinforcing the importance of this dynamic technical zone. RSI is near 52, having eased from recent higher levels and slipped below its signal average of around 58, suggesting that bullish momentum has moderated. Importantly, the oscillator remains above the neutral 50 mark and is not signaling an oversold condition. MACD also indicates fading momentum, with the histogram turning marginally negative and the MACD and signal lines converging after the recent positive phase.
Technically, 24,300–24,250 remains the immediate support area for Nifty 50, and a decisive breach below this band could intensify selling pressure, potentially dragging the index toward 24,000, which broadly coincides with the 50-day moving average (-DMA). On the upside, 24,675–24,770 represents the first key resistance zone, encompassing the recent swing high and the 200-day moving average (DMA). A sustained breakout and close above this band would signal an improvement in the underlying price structure and could pave the way for an extension toward 24,900–25,000. Until a decisive breakout occurs on either side, the index is likely to remain range-bound, with price action around these key technical levels determining the near-term directional bias.
How did Nifty Bank Perform?
Nifty Bank opened on a positive note at 57,589.75, compared with the previous close of 57,635.25. However, selling pressure emerged after the index tested its intraday high, indicating profit booking at elevated levels. The index opened at 57,589.75, touched a high of 57,681.45, a low of 57,380.45, and closed at 57,491.10, declining 144.15 points or 0.25%. Price action remained confined to a relatively narrow band, reflecting indecision between buyers and sellers. Importantly, the index closed marginally below its 21-DMA at 57,525 but continued to hold above the 50-DMA (57,336) and the 200-DMA (57,474). The recent candles indicate sideways consolidation with contracting volatility, suggesting that a decisive breakout from the prevailing range could determine the next directional move.
Momentum indicators remain largely neutral. The RSI stands at 49.98, marginally below its signal average of 52.21 and near the equilibrium level of 50, indicating an absence of strong directional momentum. RSI has cooled considerably from its July highs without entering oversold territory, consistent with ongoing consolidation rather than aggressive distribution. The MACD remains above the zero line, but the MACD line has slipped below the signal line, producing a mildly negative histogram and signaling weakening short-term momentum. The flattening MACD structure suggests that bullish momentum has faded, although there is currently no indication of a strong bearish acceleration. A decisive RSI move above 55–60 would strengthen the bullish setup.
On the technical front, immediate support is positioned around 57,300–57,350, coinciding with the 50-DMA, followed by stronger support near 56,800–57,000. A sustained breakdown could expose the 100-DMA near 55,881. Resistance is seen around 57,700–58,000, followed by 58,500–58,800. The near-term outlook remains range-bound with a neutral bias while the index oscillates around its 21- and 200-DMA. A sustained close above 58,000 could trigger renewed upside momentum, whereas a break below 57,300 would weaken the structure. Macro cues remain mixed: July CPI rose to 4.45%, while a firm dollar, elevated crude prices and geopolitical tensions are keeping broader risk sentiment cautious.
Buy: Gujarat Fluorochemicals Ltd (current price: ₹4,714)
- Why it’s recommended: Strong fluorochemicals franchise, leadership in fluoropolymers, high entry barriers, diversified specialty chemicals portfolio, growing EV battery exposure, beneficiary of renewable energy growth, strong export presence, focus on high-value products, expanding fluoropolymer capacity, strong R&D capabilities, import substitution opportunities, beneficiary of China+1 trend, growing semiconductor opportunities, integrated manufacturing operations, and long-term specialty chemicals demand.
- Key metrics: P/E: 80.64, 52-week high: ₹4,958.90, volume: ₹582.91 crore
- Technical analysis: Trendline Breakout
- Risk factors: Chemical demand cyclicality, raw material price volatility, high capital expenditure needs, capacity expansion execution risk, environmental compliance risks, fluorochemical regulatory risks, global competition, export demand fluctuations, currency fluctuation impact, margin pressure from oversupply, technology obsolescence risk, working capital requirements, global economic slowdown risk, project ramp-up delays, and valuation risk during slower growth.
- Buy at: ₹4,667–4,738
- Target price: ₹5,500 in two to three months
- Stop loss: ₹4,400
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.