Stock market recap: Indian equities extended their losses for a second consecutive session on Tuesday as crude oil prices surged past $98 per barrel, deepening concerns about inflation and import costs.
Nifty 50 fell 144.05 points, or 0.61%, to close at 23,635.10, while Sensex dropped 541.32 points, or 0.71%, to settle at 75,591.49. Brent crude's sharp rise came after a proposed Iran-Oman arrangement to manage the Strait of Hormuz shipping failed to ease supply concerns, keeping West Asia tensions in focus.
Oil & gas and banking were among the weakest sectors, while capital goods and healthcare bucked the trend, aided by the Defence Acquisition Council clearing proposals worth more than ₹1.1 trillion, which lifted defence-linked names.
Among individual stocks, Bandhan Bank, Hindustan Copper, GE Vernova T&D, and Symphony posted sharp gains, while BPCL, HPCL, and Apollo Tyres declined on rising crude costs. Voltas, United Breweries, and ICICI Lombard slipped to fresh 52-week lows. Market breadth was balanced, with 1,711 stocks advancing, 1,833 stocks declining, and 104 unchanged. Elevated crude prices and geopolitical developments in West Asia remain the key overhangs for the market.
Two stock recommendations by MarketSmith India:
Buy: Arvind Limited(current price: ₹584)
- Why it’s recommended: Rapid scaling of high-margin technical textiles, aggressive expansion and acquisitions in the Advanced Materials Division, structural shift from traditional commodity textiles toward high-margin industrial, defence and aerospace applications, increasing vertical garmenting integration, and global China Plus One sourcing benefits driving long-term orders from global fashion brands.
- Key metrics: P/E: 33.67, 52-week high: ₹600.00, volume: ₹58.36 crore
- Technical analysis: Trendline Breakout
- Risk factors: Raw-material price volatility, high sensitivity to domestic and global cotton-price fluctuations, margin pressure when higher costs cannot be immediately passed on to buyers, global cyclicality, export-market exposure, dependence on fashion-consumption cycles, and demand slowdowns in key markets such as the U.S. and Europe.
- Buy: ₹578–587
- Target price: ₹680 in two to three months
- Stop loss: ₹545
Buy: Hindustan Aeronautics Limited (current price: ₹5,030)
- Why it’s recommended: Massive order backlog exceeding ₹2.5 trillion, multi-year contracts for LCA Tejas Mk1A, combat helicopters and engines, earnings visibility over the next seven to eight years, monopolistic positioning in high-margin MRO and fighter manufacturing, sole domestic manufacturer of fighter jets and military helicopters, recurring Maintenance, Repair and Overhaul cash flows, and expanding export ambitions.
- Key metrics: P/E: 34.83, 52-week high: ₹5,149.90, volume: ₹1,282.44 crore
- Technical analysis: Reclaimed its 21-DMA
- Risk factors: Global engine and supply-chain bottlenecks, execution timelines highly sensitive to component and engine delivery delays from international partners such as GE Aerospace, revenue lumpiness, premium valuations near historically high P/E multiples, and vulnerability to sharp corrections if platform deliveries or milestone acceptances are delayed.
- Buy at: ₹4,980–5,055
- Target price: ₹5,710 in two to three months
- Stop loss: ₹4,750
Nifty 50 recap
Indian equities ended lower on 8 September, extending recent weakness as elevated crude oil prices and concerns over the escalating West Asia conflict kept risk appetite subdued. Nifty 50 closed at 23,635.10, down 144.05 points or 0.61%, after trading between 23,623.10 and 23,758.95, with the index remaining under pressure for most of the session. Financial services led the drag, with Nifty Private Bank and Financial Services declining 0.98% and 0.93%, respectively. Oil & gas fell 0.67%, and IT slipped 0.37%. In contrast, defensive pockets provided support: Media (+1.31%), pharma (+0.77%), healthcare (+0.63%), FMCG (+0.35%), and auto (+0.28%). Market breadth was moderately negative, with 1,711 stocks advancing, 1,833 stocks declining, and 104 remaining unchanged, translating into an advance-decline ratio of about 0.93:1. Rising crude prices remained a key macro concern for India. At the same time, global uncertainty and U.S. rate expectations also weighed on sentiment.
The daily price action reinforces a weakening near-term structure. The index has broken below its rising trendline that had guided the recovery since the April lows, indicating that the sequence of higher lows has been disrupted. Price has also slipped below the cluster of key short- and medium-term moving averages, while remaining well below the long-term moving average, keeping the broader technical bias cautious. Momentum indicators further validate the deterioration: the RSI has fallen sharply to 30.88, approaching oversold territory and remaining below its signal average of 42.97. While this increases the chance of a short-term technical rebound, evidence of a momentum reversal remains limited. Meanwhile, the MACD remains negative, with the MACD line below the signal line and the histogram negative, confirming strengthening bearish momentum.
Nifty 50 tested 23,600 and closed decisively below the key 23,750–23,800 zone, reflecting continued weakness in the near-term price structure. On the downside, a sustained and decisive break below the 23,500–23,600 zone could intensify bearish momentum and extend the ongoing corrective move toward 23,000. Conversely, any near-term recovery is likely to face initial resistance in 23,800–24,000.
How did Nifty Bank perform?
Nifty Bank opened on a negative note at 56,990.40 and briefly moved higher to an intraday high of 57,044.00. Profit booking then intensified, pulling the index to a low of 56,720.45 before it closed at 56,777.55, down 310.75 points, or 0.54%. The close near the day’s low reflects sustained selling pressure and limited demand during the late recovery attempt.
The index also slipped below the psychological 57,000 mark and remained beneath its 21-, 50-, and 200-DMA, although it continued to hold above the 100-DMA at 56,341.60. The session formed a bearish candle with a small lower shadow, suggesting sellers retained control. Volume was reasonably firm at 145.72 million, reinforcing the cautious short-term structure and indicating weaker buyer participationnear overhead supply zones.
RSI eased to 40.87 and remained below its average near 49.40, indicating weakening momentum without reaching oversold territory. The indicator’s downward slope suggests sellers are gaining control, while the absence of a positive divergence limits prospects of an immediate reversal. MACD remains below the zero line, with its lines closely placed and the histogram marginally negative, signaling subdued but persistent bearish momentum.
The compressed MACD structure suggests a larger directional move may develop soon. Until RSI reclaims 50 and MACD produces a convincing bullish crossover, recovery attempts may remain vulnerable to renewed selling.
Immediate support is placed at 56,700, followed by the 100-DMA near 56,350 and the broader 56,000 zone. A decisive close below 56,000 could expose 55,500–55,300. Resistance is seen at 57,000–57,050, followed by the moving-average cluster between 57,412 and 57,556.
Only a sustained close above this band would improve the structure and open 58,000. The near-term bias remains cautious because the index trades below three key averages. Elevated crude prices and geopolitical uncertainty could pressure rate-sensitive banks, although surplus liquidity and robust credit growth may cushion declines. Consolidation with a negative bias is likely unless the index reclaims 57,000 and builds follow-through above 57,550.
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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.