Buy or sell stocks: Stock market benchmarks, the Sensex and Nifty 50, closed lower on Friday, August 14, ending their two-week winning run. Investor sentiment remained subdued amid uncertainty over a potential US-Iran peace agreement, fluctuations in crude oil prices, rising bond yields, and growing concerns about a possible resurgence in inflation.
The Sensex fell 71 points, or 0.09%, to settle at 78,009.25, while the Nifty 50 declined 30 points, or 0.12%, to close at 24,366.
Stock market outlook
Nifty 50
Nifty 50 ended the session at 24,366, down 29.85 points (-0.12%), after opening at 24,361.90, while touching an intraday high of 24,405.20 and a low of 24,296.80. The index experienced a range-bound yet volatile session, with price action oscillating within a narrow band and lacking sustained directional momentum. Buying interest emerged near the lower end of the intraday range, while the index faced selling pressure near the upper end. The daily candle formed a bullish Doji, reflecting indecisiveness between buyers and sellers.
Technically, Nifty closed marginally below its 200-day EMA, indicating resistance from the long-term moving average, while the RSI at 52.21 points towards a neutral momentum setup. India VIX eased to 11.30, while PCR stood at 1.00, indicating a balanced market undertone. Sector-wise, Media, Consumer Durables and IT Services were among the stronger performers, whereas Financial Services, Pharma and Financial Services-related sectors remained under pressure.
According to Sumeet Bagadia, Executive Director at Choice Broking. From a technical perspective, Nifty 50 continues to maintain a Sideways bias, with the index likely to remain range-bound until a decisive breakout occurs on either side.
“Immediate support is placed at 24,200–24,250, while 24,500–24,550 remains the key resistance zone. A sustained move above resistance could strengthen buying momentum and open the door to further upside, whereas a break below support could intensify corrective pressure. The expected trading range for the next session is 24,200–24,550,” Bagadia said.
Bank Nifty
Bank Nifty ended the session on a weak note, closing at 57,491.10, down 144.10 points (-0.25%) after opening at 57,589, with an intraday high of 57,681.45 and low of 57,380.45. The index remained volatile during the session, with early weakness followed by a recovery attempt in the second half, but selling pressure resurfaced towards the close. The daily chart formed a bearish red candle and closed below the 20-Day EMA, indicating some deterioration in the short-term setup. The 5-minute chart also reflected profit-booking from higher levels, keeping the intraday structure cautious.
Bagadia noted that Bank Nifty is likely to maintain a Sideways bias unless a decisive breakout occurs from the broader trading zone.
“Immediate support is placed at 57,000–57,200, while 57,700–58,000 remains the key resistance area. Sustained strength above 58,000 could improve the momentum and open the way for further upside, whereas a break below 57,000 may intensify selling pressure. The expected trading range for the next session is 57,000–58,000,” Bagadia added.
Stocks to buy
On the occasion of the 80th Independence Day, Sumeet Bagadia has recommended three stocks to buy – Larsen & Toubro, CG Power, and DLF.
1] Larsen & Toubro: Buy at ₹4057, Target ₹4350, Stop Loss ₹3883
Larsen & Toubro is gradually regaining bullish momentum after witnessing a healthy correction and is currently trading around ₹4057. The stock has reclaimed all its key moving averages, with the 20-day EMA crossing above the 50-day & 100-day EMA, indicating improving short-term strength. The price has been forming higher lows over the past few sessions, suggesting accumulation at lower levels and a gradual improvement in sentiment. The 20-day EMA is expected to provide immediate support, while the 50-day and 100-day EMAs strengthen the broader bullish structure. Momentum indicators are also supportive, with the RSI holding near 58, indicating room for further upside without entering overbought territory.
A sustained move above ₹4057 could trigger fresh buying momentum and push the stock towards ₹4350 in the near term. On the downside, ₹3883 remains a crucial support level and should be maintained as the stop-loss.
2] CG Power: Buy at ₹890, Target ₹955, Stop Loss ₹850
CG Power is attempting to resume its primary uptrend after witnessing a healthy consolidation near higher levels. The stock is currently trading around ₹890 and has successfully reclaimed its short-term moving averages, indicating renewed buying interest. Technically, it is trading above the 20, 50, 100 and 200-day EMAs, reflecting a strong underlying trend despite recent consolidation. The price action suggests that the stock is building a fresh base around the 20-day EMA, which continues to act as an important demand zone.
Momentum indicators are gradually improving, with the RSI moving higher from neutral levels, indicating strengthening buying momentum. Sustaining above the current breakout zone could attract further participation and drive the stock towards ₹955 in the coming sessions. On the downside, ₹850 remains the key support level and should be maintained as the stop-loss to manage downside risk.
3] DLF: Buy at ₹665, Target ₹720, Stop Loss ₹630
DLF is showing encouraging signs of a fresh breakout after consolidating within a symmetrical triangle pattern over the past several weeks. The recent breakout from this compression pattern indicates that volatility is expanding in favor of the bulls, suggesting the possibility of a fresh upward move. The stock is currently trading around ₹665 and is positioned slightly above its 20-day EMA, which is expected to act as immediate support during any short-term pullback. It also continues to trade above the 50-day and 100-day EMAs, reflecting a positive medium-term trend.
Momentum indicators remain supportive, with the RSI trading around 54.99, indicating improving buying strength while still leaving room for further upside. A sustained move above the breakout zone could trigger fresh momentum towards ₹720. On the downside, ₹630 remains the crucial support level and should be maintained as the stop-loss.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
