Stock recommendations for 24 September from MarketSmith India
MarketSmith India reveals its top stock recommendations for today, 24 September. Get expert insights into the best-performing stocks to guide your investment decisions.
The Indian equity market ended a volatile session on a flat note, as benchmarks came under late selling pressure. Nifty 50 slipped marginally to close at 25,169.50, while BSE Sensex closed at 82,102.10.
The market displayed a clear sectoral divergence, with weakness in select sectors outweighing strength elsewhere. The IT sector was the primary drag on the indices, extending its losses for a second consecutive session amid persistent concerns over the new U.S. H-1B visa policy. FMCG and Realty stocks also faced profit booking.
Two stock recommendations by MarketSmith India:
Buy: Deepak Fertilizers and Petrochemicals (current price: ₹ 1,518)
- Why it’s recommended: Strong volume growth & specialty fertilizer push, capex, capacity expansion, and backward integration
- Key metrics: P/E: 18.56, 52-week high: ₹1,779, volume: ₹106.25 crore
- Technical analysis: Reclaimed its 100-DMA on above average volume
- Risk factors: Commodity input cost volatility & global competition, segmental margin pressures & demand cyclicality
- Buy: ₹ 1,500–1,525
- Target price: ₹1,730 in two to three months
- Stop loss: ₹1,420
Buy: Lumax Auto Technologies (current price: ₹1,176)
- Why it’s recommended: Strong financial momentum and scale-up, strong financial momentum and scale-up
- Key metrics: P/E: 31.12; 52-week high: ₹1,250; volume: ₹ 51.07 crore
- Technical analysis: Reclaimed its 50-DMA on above average volume
- Risk factors: Execution risk of new ventures & acquisition integration
- Buy at: ₹1,160–1,180
- Target price: ₹1,380 in two to three months
- Stop loss: ₹ 1,080
Nifty 50 recap
On 23 September, Indian equities ended marginally lower, with Nifty 50 slipping 32.85 points, or 0.13%, to close at 25,169.50, after oscillating between 25,084.65 and 25,261.90 through the session. Sensex also closed in the red, reflecting cautious investor sentiment. Market breadth remained weak, dragged down primarily by IT stocks on concerns around a proposed hike in U.S. H-1B visa fees. Banking counters also saw selling pressure, while select Auto names found support on expectations of festive season demand. The overall tone was subdued as global policy uncertainties tempered risk appetite.
Nifty 50 encountered resistance around 25,450 and subsequently saw profit booking, indicating some consolidation after the recent uptrend. Momentum signals suggest a healthy, though moderating setup. The RSI has cooled off from overbought levels and now stands at 58, but continues to hold above the downward-sloping trendline breakout, reinforcing underlying strength. The MACD remains in positive territory, indicating that the broader trend bias stays constructive despite near-term volatility. Overall, the technical structure suggests that while some pause or pullback cannot be ruled out, the index retains a favourable outlook as long as it sustains above immediate support levels.
According to O'Neil’s methodology of market direction, the market status has been downgraded to an "Uptrend Under Pressure" as Nifty breached its "50-DMA" and the "distribution day count" is at one.
The index extended its losing streak and settled just above 25,150, indicating continued consolidation at higher zones. As long as the index sustains above 25,150, it is expected to trade within a defined range of 25,150–25,350. However, a decisive close below 25,150 could trigger additional downside pressure, potentially dragging the index toward 25,000. Price action around these support levels will be crucial in gauging the index’s next directional move.
How Nifty Bank Performed
Bank Nifty closed firm on 23 September, ending at 55,509.75, up 225 points or 0.41%, supported by selective buying in public sector lenders and mid-tier banks. The index traded in a broad range of 55,159–55,662, recovering from early weakness to settle near the day’s higher levels. Gains in stocks such as SBI, Canara Bank, and IndusInd Bank helped offset mild softness in heavyweights like HDFC Bank and ICICI Bank.
The index opened the session on a muted note and slipped toward 55,150 in early trade, reflecting initial weakness. However, buying interest emerged around these lower levels, driving a steady recovery through the late morning. Post-noon, the index gathered momentum and surged past 55,600, marking the intraday high, before consolidating in a narrow band during the final hours. It eventually closed at 55,509.75, up 225 points (0.41%) from the previous close of 55,284.75. The momentum indicator, RSI, climbed higher along with positive a crossover on MACD.
At the current juncture, Bank Nifty is approaching a critical technical zone, with immediate resistance placed in the 55,800–55,900 range, which coincides with its 100-DMA. A sustained breakout above this band would significantly improve the medium-term outlook and could trigger fresh upward momentum. In such a scenario, the index may advance toward 56,600, with further potential to test 57,200 in the near term. On the downside, strong support is positioned in 54,900–54,800, and a breach below this level could accelerate selling pressure, paving the way for a deeper correction.
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.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
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.
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