Stock market recap: Indian benchmarks ended a choppy session mixed on Friday, with the Nifty 50 and Sensex diverging as last session's relief rally lost steam.
The Nifty 50 edged up 20.15 points, or 0.08%, to close at 24,252.00, while the Sensex slipped 135.39 points, or 0.17%, to settle at 77,402.33; both indices still ended the week around 0.6% lower.
Metal and realty stocks led the gainers, supported by Power Grid, HDFC Life, Kotak Mahindra Bank and Hindalco, while auto, IT, FMCG, and PSU banks lagged; sugar stocks fell sharply after the government allowed duty-free imports of raw sugar, raising concerns over domestic supply and mill margins.
Global bond yields resumed their climb, with the US 30-year yield back near 5.25%, while Brent crude held near $94 a barrel, up more than 5% for the week on continued Strait of Hormuz disruption risk.
Foreign investors turned net sellers, though domestic institutions provided a cushion with steady buying. Market breadth stayed positive through the close, with 1,859 advances against 1,602 declines and 125 unchanged on the NSE, even as the underlying tone remained cautious.
Two stock recommendations by MarketSmith India:
Buy: Acme Solar Holdings Ltd (current price: ₹400)
- Why it is recommended: Large renewable energy portfolio, strong solar power presence, expanding wind and hybrid capacity, growing FDRE project pipeline, rapid capacity additions, strong long-term PPAs, large BESS expansion plans, high plant availability, improving operating efficiency, falling borrowing costs, strong project financing access, diversified presence across states, beneficiary of energy transition, strong renewable power demand, and long-term capacity growth potential.
- Key metrics: P/E: 47.33, 52-week high: ₹411.30, volume: ₹183.62 crore
- Technical analysis: Flat base pattern breakout
- Risk factors: High project execution risk, significant debt requirements, interest-rate sensitivity, competitive renewable auctions, PPA execution delays, land acquisition challenges, grid connectivity risk, high future capex needs, dependence on government policies, counterparty payment risks, solar generation variability, equipment cost volatility, regulatory and tariff risk, aggressive capacity expansion, equity dilution risk.
- Buy: ₹396–402
- Target price: ₹450 in two to three months
- Stop loss: ₹375
Buy: PTC Industries Limited (current price: ₹20,725)
- Why it is recommended: Strong aerospace and defense focus, advanced titanium manufacturing capabilities, growing superalloy capabilities, strong defense indigenization opportunity, Expanding aerospace order pipeline, Strategic ISRO and DRDO orders, Global aerospace customer base, long-term Honeywell agreement, Safran engine component orders, Blue Origin supply opportunity, BrahMos order visibility, integrated manufacturing capabilities, Large capacity expansion underway, High entry barriers, strong make-in-India tailwinds.
- Key metrics: P/E: 234.24, 52-week high: ₹20,789.00, volume: ₹97.73 crore
- Technical analysis: Cup base pattern breakout
- Risk factors: High execution risk, capital-intensive expansion plans, long aerospace qualification cycles, customer approval delays, order concentration risk, defense order timing uncertainty, technology execution risk, capacity ramp-up challenges, high working-capital requirements, raw material price volatility, dependence on titanium availability, global aerospace cyclicality, currency fluctuation risk, equity dilution risk, high valuation risk.
- Buy at: ₹20,518–20,829
- Target price: ₹23,500 in two to three months
- Stop loss: ₹19,500
How Nifty 50 performed
Indian equities ended Friday’s session largely flat after a volatile day, with the Nifty 50 closing at 24,252.00, up 20.15 points or 0.08%. The index opened at 24,284.05, slipped to an intraday low of 24,206.80 and eventually recovered into the close, indicating buying support around the 24,200 zone. Market breadth was moderately positive: of the 3,586 stocks traded, 1,859 advanced, 1,602 declined, and 125 remained unchanged, translating into an advance-decline ratio of roughly 1.16:1.
Sectoral performance was mixed, with Nifty Metal (+0.86%) leading gains, followed by Private Bank (+0.51%), Realty (+0.40%), and Financial Services (+0.23%). Conversely, FMCG (-0.74%), Auto (-0.60%), Media (-0.54%), and IT (-0.46%) weighed on sentiment. The session therefore reflected consolidation rather than broad risk aversion, with underlying market breadth remaining constructive despite limited headline-index gains.
Nifty 50 staged a rebound following the recent corrective phase from the early-August peak. The RSI has recovered to 49 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 54, 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 Nifty 50 staged a sharp rebound and closed above its 50-day moving average (50-DMA), signaling 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 the 24,700 region, 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 the 24,100–24,000 zone would weaken the technical structure and could extend the corrective move towards 23,900–23,800.
How did the Nifty Bank perform?
Nifty Bank opened on a positive note at 57,613.20 and maintained a constructive bias during the session. After briefly testing an intraday low of 57,481.55, buying interest emerged at lower levels, helping the index rebound and touch a high of 57,772.45. It eventually closed near the day’s high at 57,761.95, gaining 266.05 points (+0.46%). The recovery enabled the index to close above its 21-DMA (57,488.71), 50-DMA (57,600.32), and 200-DMA (57,457.56), reinforcing the near-term technical structure. Price action, however, remains confined within a narrow consolidation range, indicating accumulation but also highlighting the need for a decisive breakout above recent swing highs to establish stronger directional momentum.
The RSI stands at 53.72, above its signal average of 51.79, indicating a modest improvement in momentum while remaining comfortably within neutral territory. The move above the 50 mark suggests buyers are gradually gaining an advantage, although RSI has yet to reach levels associated with strong bullish momentum. Meanwhile, the MACD remains relatively subdued, with the histogram marginally negative, indicating that momentum has not yet decisively strengthened despite the positive price action. The flattening MACD structure reflects the ongoing consolidation. A sustained bullish crossover accompanied by expanding positive histogram bars would provide stronger confirmation of an upside breakout and improving trend strength.
On the downside, immediate support is positioned around 57,450–57,500, where the 21-DMA and 200-DMA are clustered, followed by stronger support near 57,000–57,100. On the upside, 57,800–58,000 remains the immediate resistance zone; a decisive close above this band could open the path toward 58,500–59,000. The index currently benefits from its recovery above key moving averages, but the compressed price structure and subdued MACD suggest that confirmation is still required. Over the coming sessions, sustained trading above 57,450 should preserve a mildly bullish bias, while a breakout above 58,000 could accelerate momentum. Conversely, a breach of 57,450 could trigger renewed consolidation toward 57,000.
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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.