Stock market update: Indian equity benchmarks extended their losing run to a fifth straight session on Monday, weighed down by a fresh spike in crude oil prices.
Nifty 50 fell 78.35 points, or 0.32%, to close at 24,287.65, while Sensex declined 281.09 points, or 0.36%, to settle at 77,728.16. IT emerged as the biggest drag, with Infosys, HCL Technologies, TCS, and Tech Mahindra all falling more than 1% as the sector's weekly weakness persisted. PSU Banks, FMCG, and Financial Services stocks also came under selling pressure.
Auto, metal, pharma, and healthcare stocks offered some resistance and ended the session with marginal gains, led by Hindalco, Titan, Bajaj Finance, and HDFC Life Insurance. Renewed uncertainty over the Strait of Hormuz and the unresolved U.S.-Iran standoff pushed oil prices higher, adding to a weaker rupee and denting overall risk appetite, even as global cues stayed mixed.
Broader markets stayed cautious, with midcap and smallcap indices also slipping. Market breadth stayed negative through the close, with 1,683 stocks advancing, 1,825 stocks declining, and 115 remaining unchanged on the NSE, underscoring the broad-based nature of the day's selling.
Two stock recommendations by MarketSmith India:
Buy: Raymond Limited (current price: ₹648)
- Why it’s recommended: Strong Raymond brand legacy, valuable real-estate portfolio, asset monetization potential, focused post-demerger structure, strong customer brand recall, potential margin improvement, experienced promoter group, and long-term urbanization beneficiary. Utilizing its structurally net debt-free position and positive cash reserves to fund a ₹930–1,000 crore capex program.
- Key metrics: P/E: 15.66, 52-week high: ₹679.00, volume: ₹73.08 crore
- Technical analysis: Trendline Breakout
- Risk factors: High real-estate cyclicality, project execution delays, regulatory approval risks, high capital requirements, property demand slowdown, interest-rate sensitivity, construction cost inflation, intense developer competition, cash-flow timing volatility, land monetization uncertainty, corporate restructuring complexity, promoter/governance risks, economic slowdown exposure, and valuation risk after value unlocking.
- Buy: ₹642–651
- Target price: ₹750 in two to three months
- Stop loss: ₹605
Buy: Billionbrains Garage Ventures Limited (current price: ₹198)
- Why it’s recommended: India’s leading digital investment platform, large active customer base, strong Groww brand recognition, asset-light digital business model, strong revenue growth, healthy profitability, high operating leverage potential, growing retail investing penetration, expanding product ecosystem, mutual fund business opportunity, cross-selling potential, strong in-house technology platform, low physical infrastructure needs, long-term financialization opportunity, and scalable customer acquisition model.
- Key metrics: P/E: 50.45, 52-week high: ₹227.20, volume: ₹332.04 crore
- Technical analysis: Bounce from 100-DMA
- Risk factors: High dependence on broking activity, stock-market volume sensitivity, SEBI regulatory change risk, derivatives regulation risk, intense fintech competition, customer acquisition cost pressure, cybersecurity and data risks, technology outage risk, pricing/commission pressure, revenue concentration risk, market downturn impacts activity, rapidly changing fintech landscape, execution risk in new products, limited listed-company track record, and high valuation risk.
- Buy at: ₹196–199
- Target price: ₹225 in two to three months
- Stop loss: ₹186
How Nifty 50 Performed on 17 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 in afternoon trade. However, late selling capped gains.
Broader market breadth remained weak, with 1,479 stocks advancing, 1,855 stocks declining, and 127 remaining unchanged, translating into an advance-decline ratio of roughly 0.80. This indicates that underlying sentiment was softer than the headline index suggested.
On the sectoral front, Media (+0.96%) and Consumer Durables (+0.76%) outperformed, while Pharma (-0.90%), Metal (-0.71%), Auto (-0.63%), and PSU Bank (-0.57%) led the declines. Private Banks were comparatively resilient. From a technical perspective, Nifty’s recovery from around 24,300 highlights this zone as immediate support, while 24,400–24,405 remains the first resistance area.
Nifty 50 closed at 24,287.65, down 0.32%, with price action showing a loss of near-term momentum following the recent rejection from higher levels. The index has slipped below its short-term moving average near the 21-DMA ( 24,322), while remaining above the rising medium-term averages, suggesting that the broader recovery structure is still intact but is undergoing consolidation. Momentum indicators have also softened.
The RSI has declined to 49.26, moving below the neutral 50 mark and remaining below its signal average of 57.97, indicating fading bullish momentum without entering oversold territory. The MACD has weakened, with the MACD line rolling over and the histogram moving into negative territory, signaling a bearish momentum crossover and a loss of upward impulse.
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 marginally lower at 57,418.30, compared with the previous close of around 57,491, and remained largely range-bound throughout the session. The index opened at 57,418.30, touched an intraday high of 57,757.25, tested a low of 57,119.60, and eventually closed at 57,497.80, gaining 6.70 points or 0.01%. Buying interest emerged after the index tested its intraday low, helping it recover most of its losses and close nearly unchanged. Technically, the index consolidates around a crucial cluster of moving averages, with the 21-SMA (57,476), the 200-SMA (57,472), and the 50-SMA (57,396). The narrow consolidation and repeated rejection around 57,800–58,000 indicate indecision, suggesting that a decisive breakout from the prevailing range could determine the next directional move.
Momentum indicators remain broadly neutral, reflecting the ongoing consolidation. The RSI stands at 50.06, slightly below its RSI average of 52.50, indicating balanced momentum with neither buyers nor sellers holding a decisive advantage. The RSI remaining around the 50 mark reinforces the absence of a strong directional trend. Meanwhile, the MACD is flattening near the equilibrium zone, with momentum losing strength following the earlier recovery. The recent convergence of the MACD and signal lines warrant caution, as a bearish crossover could increase near-term selling pressure. Conversely, a renewed positive crossover accompanied by a price breakout above resistance would strengthen the bullish setup.
On the technical front, immediate support is seen around 57,350–57,100, followed by stronger support near 56,800 and the 100-SMA at around 55,921. On the upside, 57,750–58,000 remains the immediate resistance zone. A sustained breakout above 58,000 could open the way toward 58,500–59,000. In the coming sessions, Nifty Bank is likely to remain range-bound until it decisively moves beyond the 57,100–58,000 consolidation band. Holding above the 21-, 50-, and 200-SMA cluster keeps the near-term bias cautiously positive. However, banking-sector sentiment, institutional flows, interest-rate expectations and broader domestic market cues will remain important catalysts. A close above 58,000 would improve momentum, while a break below 57,100 could trigger renewed downside pressure.
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.