Stock market recap: Benchmark equity indices extended their losing streak to a fourth consecutive day on Thursday, with the Sensex falling 417 points as rising crude oil prices and losses in IT stocks weighed on investor sentiment.
The 30-share BSE Sensex fell 417.49 points, or 0.55%, to close at 76,152.86. The 50-share NSE Nifty fell 41 points, or 0.17%, to settle at 23,873.45.
On the Sensex, Titan, Trent, ITC, Mahindra & Mahindra, Bajaj Finserv, HCL Technologies, Tech Mahindra, Sun Pharmaceutical Industries, Tata Consultancy Services, UltraTech Cement and Bajaj Finance were the major laggards.
Axis Bank, Adani Ports, Asian Paints, HDFC Bank, Bharti Airtel, Bharat Electronics and Tata Steel were among the gainers.
Brent crude rose 1.57% to $97.13 a barrel.
Two stock recommendations by MarketSmith India:
Buy: Apar Industries Limited (current price: ₹17,687)
- Why it’s recommended: Power Sector & Grid Transmission Boom: Aggressive government and global capex expansion in power transmission networks, renewable energy evacuation, and data center grid modernization drives immense volume growth for premium high-temperature conductors and advanced cables. Aggressive Capacity Expansion: Massive capital expenditure (around ₹1,300–1,500 crore) is significantly scaling up conductor and cable production lines to fulfill robust domestic and export order books.
- Key metrics: P/E: 58.39, 52-week high: ₹18,465.00, volume: ₹366.21 crore
- Technical analysis: Reclaimed its 21-DMA
- Risk factors: Raw Material Price Volatility: High vulnerability to severe margin compression if base metal prices (aluminium and copper) spike globally before the company can pass costs onto customers. Intensifying Domestic Competition: Increasing price war pressures in low-specialty conductor and low-voltage cable segments from well-capitalised players like Polycab and Finolex.
- Buy: ₹17,510–17,775
- Target price: ₹20,500 in two to three months
- Stop loss: ₹16,500
Buy: Polyplex Corp. Ltd (current price: ₹1,203)
- Why it’s recommended: Resilient Packaging Demand Recovery: A steady, cyclic rebound in global thin BOPET film demand—especially across developing Asian markets—is stabilizing sales volume and recovering profitability margins. Diversified Global Manufacturing Base: Decentralised manufacturing operations across major consumer hubs minimize freight risks and allow flexible shifting of supply to regions showing stronger demand.
- Key metrics: P/E: 13.75, 52-week high: ₹1,264.00, volume: ₹5.35 crore
- Technical analysis: Tight range breakout
- Risk factors: Global PET Film Overcapacity: A massive industry-wide supply glut continues to restrict multi-year margin expansion and exerts severe downward pressure on product pricing. Heavy Currency & Export Exposure: High sensitivity of top-line revenue to adverse foreign exchange volatility (INR appreciation) and localized international trade barriers or reciprocal tariffs.
- Buy at: ₹1,191–1,209
- Target price: ₹1,280 in two to three months
- Stop loss: ₹1,169
How Nifty 50 performed
Indian equities ended Thursday’s volatile session on a subdued note, with Nifty 50 closing at 23,873.45, down 41 points or 0.17%, after opening at 23,997.95 and touching an intraday high of 24,025.40. The index finished at the day’s low as early gains faded on profit-booking and continued weakness in technology shares. Sensex was broadly flat around 76,600late in the session.
On the sectoral front, Realty (+2.58%) and Media (+1.74%) led gains. Meanwhile, Private Banks and PSU Banks also advanced, On the other hand, IT (-0.85%), FMCG (-0.62%), and Auto (-0.52%) remained key drags. Encouragingly, the broader market was considerably stronger than the benchmarks, with 2,208 stocks advancing, 1,313 declining, and 107 remaining unchanged, translating into an advance-decline ratio of roughly 1.68:1. Positive global cues and some easing in crude prices supported sentiment initially. However, geopolitical uncertainty and profit-taking capped the recovery.
Nifty 50’s technical structure has weakened, with the index closing at 23,873.45, down 0.17%, and ending near the session low. Price action indicates a loss of near-term momentum, as the index has slipped below its rising trendline and is trading beneath the key short- and medium-term moving averages visible on the daily chart. The recent sequence of lower highs from the August peak further suggests that sellers are gaining control.
Meanwhile, the latest decline has challenged the broader recovery structure that has been developing since April. Momentum indicators reinforce this cautious setup. The RSI has declined to 37.11, below its signal average of 45.27, reflecting weakening momentum. Importantly, it is approaching oversold territory but has not yet reached levels that would independently indicate exhaustion of the decline. The MACD remains in negative territory, with the MACD line below the signal line and the histogram negative, confirming continued bearish momentum.
The index breached its 100-DMA and the rising trendline, indicating a deterioration in the near-term technical structure. On the downside, a decisive break below 23,800–23,750 could reinforce bearish momentum and extend the corrective move toward 23,650–23,500. Conversely, any recovery is likely to encounter initial resistance around the 100-DMA and 24,000, making this a key hurdle for the index. A sustained close above 24,000 would signal improving short-term momentum and could trigger a broader recovery toward 24,400.
How did the Nifty Bank perform?
Nifty Bank opened on a positive note at 57,497.85 and advanced to an intraday high of 57,753.60. However, profit booking emerged near the day’s high, dragging the index to its intraday low and closing level of 57,380.60. Despite surrendering most intraday gains, the index ended 208.60 points, or 0.36%, higher.
The close remained below the 21-DMA (57,572.89), 50-DMA (57,600.37), and 200-DMA (57,437.31), but above the rising 100-DMA at 56,512.18. The session formed a small bearish candle with an upper wick, signaling rejection at higher levels. Price action remains range-bound, with repeated reversals around the clustered moving averages reflecting indecision between buyers and sellers.
RSI stood at 48.37, below its signal average of 50.18, indicating neutral-to-weak momentum and a lack of sustained buying strength. The indicator remains near the midpoint, consistent with the index’s ongoing sideways consolidation. MACD has slipped marginally below its signal line, while the histogram remains slightly negative, suggesting a mild bearish crossover without strong downside momentum. The flattening MACD lines near the zero level reinforce the absence of a decisive trend. A move above 55 in the RSI, accompanied by a positive MACD crossover, would provide stronger confirmation of an upside breakout.
Immediate support is placed at 57,300–57,150, followed by 56,900 and the 100-DMA near 56,512. Resistance is clustered at 57,575–57,750, where the 21-DMA, 50-DMA and today’s high converge. A decisive breakout could open the way toward 58,000–58,300.
The near-term bias remains sideways with a mild bearish undertone until the index sustains above 57,750. Surplus banking-system liquidity may ease funding costs and support margins, although the RBI’s unchanged 5.25% repo rate and inflation concern limit policy support. A close below 57,150 would weaken the structure and increase the probability of a decline toward 56,500.
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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.