Stock market recap: Benchmark equity indices, the Sensex and the Nifty 50, clocked healthy gains on Thursday, 20 August, amid largely positive global cues.
The 30-share pack Sensex closed 628 points, or 0.82%, higher at 77,537.72, while the Nifty ended 154 points, or 0.64%, up at 24,231.85. The rally was broad-based, with the Nifty Midcap 150 index climbed 0.36% and the Nifty Smallcap 250 index rising by 0.58%.
The overall market capitalization of BSE-listed firms rose to over ₹491 trillion from ₹488.70 trillion in the previous session.
The advance-decline ratio shifted in favour of advancers, as out of some 4,550 stocks traded on the BSE, nearly 2,450 advanced while about 1,875 declined
Two stock recommendations by MarketSmith India:
Buy: VA Tech Wabag Ltd (current price: ₹2,058)
- Why it’s recommended: Global water-treatment specialist, record-high order book, strong revenue visibility, growing desalination demand, rising wastewater reuse opportunities, strong international presence, expanding business in West Asia, growing recurring O&M revenue, net-cash-positive balance sheet, improving revenue and profit growth, strong proprietary technology base, beneficiary of water scarcity trend, government infrastructure spending support, industrial water-treatment opportunities, and healthy long-term sector outlook.
- Key metrics: P/E: 31.10, 52-week high: ₹2,253.50, volume: ₹285.55 crore
- Technical analysis: Bounce from its 50-DMA
- Risk factors: Large-project execution risk, order conversion delays, high municipal-sector exposure, government payment delays, working-capital requirements, international geopolitical risks, currency fluctuation risk, EPC margin pressure, project cost overruns, competitive bidding pressure, customer payment/default risk, regulatory and environmental risks, dependence on large orders, overseas execution complexity, valuation risk after strong growth.
- Buy: ₹2,037–2,068
- Target price: ₹2,350 in two to three months
- Stop loss: ₹1,940
Buy: Anant Raj Ltd (current price: ₹633)
- Why it’s recommended: Strong Delhi-NCR real-estate presence, large low-cost land bank, growing residential project pipeline, strong Gurugram housing demand, rapid data centre expansion, cloud services growth opportunity, diversified real estate + digital infra, strong revenue and profit growth, significant debt reduction, improving recurring rental income, existing data-centre assets scaling up, long-term data localisation tailwind, planned 357 MW data-centre capacity, residential cash flows funding expansion, and strong long-term development potential.
- Key metrics: P/E: 39.17, 52-week high: ₹743.65, volume: ₹246.56 crore
- Technical analysis: Cup-with-handle base breakout
- Risk factors: Data-centre execution delays, aggressive expansion targets, data-centre occupancy risk, high future capex requirements, Gurugram/NCR concentration, real-estate cyclicality, luxury housing demand volatility, project approval delays, construction execution risk, customer collection delays, interest-rate sensitivity, input cost inflation, strong developer competition, cloud business execution risk, and valuation dependent on growth delivery.
- Buy at: ₹627–636
- Target price: ₹720 in two to three months
- Stop loss: ₹590
Nifty 50 performance on 20 August
Indian equities ended firmly higher on Thursday, with Nifty 50 gaining 153.55 points, or 0.64%, to close at 24,231.85. The index opened at 24,225.45 and traded between 24,184.55 and 24,265.15, holding above the previous close through most of the session and indicating steady buying interest.
Market breadth was encouraging, with 2,108 stocks advancing against 1,405 declines, and 119 remained unchanged, translating into an advance-decline ratio of about 1.50:1 and signalling broad-based participation.
Sector-wise, sentiment was largely positive. Nifty Media (+2.13%) led the gains, followed by Realty (+1.41%), Private Bank (+0.89%), FMCG (+0.82%), and IT (+0.79%). Financial Services advanced 0.61%, while Auto and Pharma posted moderate gains. In contrast, PSU Bank (-0.01%) was broadly flat, and Oil & Gas (+0.01%) showed limited participation.
Nifty 50 staged a rebound following the recent corrective phase from the early-August peak. The RSI recovered to 48.33 after approaching the lower end of its recent range. While this improvement suggests easing downside pressure, the indicator remains below the 50 mark and below its RSI moving average at 55.27, implying that momentum is still neutral-to-soft rather than firmly bullish. The MACD remains in a bearish configuration, with the MACD line below the signal line and the histogram in negative territory. Nevertheless, the latest price recovery warrants monitoring for a moderation in negative momentum.
The index staged a sharp rebound and closed above its 50-day moving average (DMA), signalling an improvement in near-term sentiment. On the upside, the 21-DMA around 24,300 is likely to act as the immediate hurdle. A sustained close above this level would strengthen short-term momentum and could pave the way for a broader recovery toward 24,700, where the 200-DMA is currently positioned.
Conversely, failure to sustain the recovery could keep the index vulnerable to renewed selling pressure. A decisive break below 24,100–24,000 would weaken the technical structure and could extend the corrective move toward 23,900–23,800.
How did Nifty Bank perform?
Nifty Bank opened on a positive note at 57,507.65 and remained firm throughout the session. The index tested an intraday high of 57,702.95, while intermittent profit booking pulled it to a low of 57,431.80. Buying interest at lower levels helped it recover, and it closed at 57,495.90, gaining 256.15 points or 0.45%.
Price action remains range-bound, with the index consolidating around its key moving averages. It is holding above the 21-DMA at 57,433 and the 200-DMA at 57,459 but remains marginally below the 50-DMA at 57,549, suggesting indecision near current levels. The recent candles indicate a tight consolidation, and a decisive breakout from this range could determine the next directional move.
On the momentum front, RSI stands near 50.45, indicating neutral momentum and a lack of strong directional conviction. RSI is also below its signal average near 52.14, suggesting that bullish momentum is yet to strengthen meaningfully. Meanwhile, MACD remains largely flat near the zero line, with the MACD and signal lines converging, reflecting subdued momentum and consolidation. There is no meaningful divergence visible at present. Overall, the indicators suggest equilibrium between buyers and sellers, with the index requiring a stronger price move to generate a clearer momentum signal.
On the downside, immediate support is around 57,400–57,300, followed by 57,000, while the 100-DMA near 56,067 remains a stronger medium-term support. Resistance is seen around 57,550–57,700. A sustained breakout above this zone could open the way toward 58,000–58,300.
The near-term bias remains cautiously positive while the index holds above 57,300, but confirmation requires a breakout above 57,700. Broader sentiment improved today as Indian equities rebounded on declining US bond yields, short covering and positive global cues, with banking stocks participating in the recovery. However, elevated prices and ongoing in West Asia uncertainty remain key macro risks that could limit sustained buying momentum.
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.