Stock market recap: The Indian stock market ended lower on Monday, 24 August, in line with weak global cues. The Sensex ended at 77,369, down 172 points, or 0.22%, while the Nifty 50 closed 33 points, or 0.14%, lower at 24,219.05.
The Nifty Midcap 150 index inched up by 0.07%, while the Smallcap 250 index declined 0.21%.
In terms of index contribution, Reliance Industries Ltd, Bajaj Finance, ICICI Bank, Bharti Airtel, State Bank of India, and Axis Bank ended as the top drags on the Sensex index.
Among sectoral indices, Nifty Metal jumped 1.6%, defying weak market sentiment.
Two stock recommendations by MarketSmith India:
Buy: Skipper Ltd (current price: ₹575)
- Why it’s recommended: Robust order book and capex tailwind: Skipper Limited leverages a record-high order book of more than ₹9,200 crore, directly fuelled by aggressive domestic power transmission & distribution (T&D) capex, renewable energy integration projects from Power Grid Corporation of India Ltd (PGCIL), and global grid modernization. Aggressive capacity and export expansion: The company is scaling its engineering production capacity toward 600,000 MTPA by FY28, establishing new global subsidiaries in North America, Europe, LatAm, and West Asia to target higher-margin international orders and achieve a 50% export revenue mix.
- Key metrics: P/E: 26.87, 52-week high: ₹593.00, volume: ₹157.81 crore
- Technical analysis: Trendline Breakout
- Risk factors: High concentration of key customers: A significant portion of Skipper's order inflows relies directly on public sector giants like PGCIL, making its revenue stream heavily exposed to any capital expenditure freeze or project delays from a single entity. Commodity price and input cost Volatility: Operating in a heavy manufacturing space means profitability margins are highly sensitive to sudden fluctuations in raw material pricing, such as steel, zinc, and aluminum, as well as macroeconomic bottlenecks that cause delayed export shipments.
- Buy: ₹569–578
- Target price: ₹660 in two to three months
- Stop loss: ₹545
Buy: LG Electronics India Ltd (current price: ₹1,664)
- Why it’s recommended: Aggressive capacity and export hub scaling: Supported by a massive ₹5,000 crore expansion project including the new Sri City mega-facility, LG Electronics India is targeting a sharp ramp-up in high-margin B2B consumer sales and scaling export reach to more than 50 countries. Premiumization and market leadership tailwind: As India's market leader across refrigerators, televisions, and washing machines, the brand is capitalizing on a robust premiumization shift (e.g., side-by-side refrigerators, OLED TVs) that brokerages anticipate will yield superior asset turnover, improved pricing power, and an expansion in Ebitda margins.
- Key metrics: P/E: 60.39, 52-week high: ₹1,755.00, volume: ₹122.75 crore
- Technical analysis: Trendline Breakout on Weekly chart
- Risk factors: Severe Tax and Royalty Contingent Liabilities: The firm operates under a heavy overhang of pending governance issues, notably carrying substantial contingent liabilities, disclosed at more than ₹4,700 crore primarily due to disputed litigious tax claims, as well as financial vulnerabilities tied to parent-company royalty structures. Raw Material and Macroeconomic Volatility: High-cost inputs and manufacturing components represent a disproportionate chunk of overall expenses, comprising over 75% of revenue, leaving the business highly vulnerable to margin degradation from sudden steel or plastic commodity price hikes, rupee depreciation, or intense regional competition.
- Buy at: ₹1,647–1,672
- Target price: ₹1,850 in two to three months
- Stop loss: ₹1,580
Nifty 50 performance on 24 August
Indian equities ended Monday’s session marginally lower after surrendering early gains, with Nifty 50 closing at 24,219.05, down 32.95 points or 0.14%, after moving between 24,144.30 and 24,313.00 during the day. Sensex also finished in negative territory as initial optimism from positive global cues and easing crude prices faded during the session.
On the sectoral front, performance was mixed. Nifty Metal (+1.59%) was the standout performer, followed by Realty (+0.60%), while PSU Bank (-0.93%) and Media (-0.58%) led the declines. Financial Services and Private Banks also remained under pressure. Broader market breadth was slightly negative, with 1,740 stocks advancing, 1,820 declining, and 113 remaining unchanged, translating into an advance-decline ratio of approximately 0.96:1, indicating modestly cautious participation.
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 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 57,828.15, marginally above the previous close of 57,761.95. The index touched an intraday high of 57,873.75, but profit booking at higher levels dragged it to a low of 57,245.95. A partial recovery from the day’s bottom helped it close at 57,525.95, down 236 points or 0.41%. The session formed a bearish candle with a pronounced lower shadow, reflecting selling pressure near 57,850–57,900 alongside buying interest around 57,250. The close was almost aligned with the 21-SMA (57,528.35), above the 200-SMA (57,456.31), but below the 50-SMA (57,614.54).
This cluster of averages highlights indecision and suggests that the index remains trapped in a narrow consolidation phase, awaiting a decisive directional breakout.
RSI stands at 50.53, marginally below its signal average of 51.46, indicating neutral momentum with a slight negative bias. The oscillator is neither overbought nor oversold and shows no meaningful divergence, reinforcing the ongoing range-bound structure. MACD remains above the zero line at 44.62, but it is below the signal line at 73.27, while the histogram is at -28.65, confirming a mild bearish crossover and fading upside momentum.
However, the shallow histogram and tightly converging lines suggest weak trend conviction. A renewed positive crossover would be required to validate a stronger recovery.
Immediate support is positioned at 57,450–57,250, encompassing the 200-SMA and the session’s intraday low. A decisive breach of this support zone could intensify selling pressure and drag the index toward 57,000, followed by 56,150–56,000 near the 100-SMA. On the upside, immediate resistance is placed at 57,615–57,875, while 58,200–58,500 represents a stronger supply zone.
The near-term outlook remains sideways with a slight bearish bias until Nifty Bank records a decisive close above 57,875. Such a breakout could strengthen momentum toward 58,500, whereas a sustained close below 57,250 would materially weaken the technical structure and increase downside risks over the coming sessions.
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.