Buy or sell stocks: Unresolved tensions in West Asia, coupled with concerns that persistently high crude oil prices could hurt India’s macroeconomic fundamentals and corporate earnings, continued to dampen sentiment in the domestic equity market.
The benchmark Sensex plunged 493 points, or 0.63%, to close at 77,235.46 on Tuesday, August 18. Meanwhile, the NSE’s Nifty 50 extended its losing streak to a sixth straight session, declining 133 points, or 0.55%, to settle at 24,154.90.
Stock market today
Nifty remained under pressure throughout the session, opening weak at 24,223.85 and failing to build any meaningful recovery. After marking a marginal high of 24,269.65, the index faced sustained selling and gradually slipped to the day’s low of 24,154.90, where it closed at the same level, down 132.75 points (-0.55%).
According to Sumeet Bagadia, Executive Director at Choice Broking, the daily setup continues to indicate weakness, with Nifty trading below its key short-term moving average and RSI at 44.67, reflecting subdued momentum. Among sectors, Media, Auto and Oil & Gas showed resilience, while IT, Realty, PSU Bank and FMCG witnessed selling pressure.
“Derivatives data also points towards a cautious near-term setup, with PCR at 0.81 and India VIX at 11.3875, indicating a marginal rise in volatility. Call writing remains concentrated around 24,200–24,300, keeping this zone as an immediate hurdle, while Put writing around 24,200–24,150 offers some support. Hence, 24,000–24,150 remains the crucial downside zone, and holding this area will be important to prevent further weakness. On the upside, 24,270–24,350 is the key resistance band, and a sustained move above this zone could provide some improvement in the short-term structure,” Bagadia said.
Bank Nifty
Bank Nifty also witnessed selling pressure and remained largely range-bound after an initial move towards 57,584.70. The index subsequently lost momentum, gradually moved lower and touched an intraday low of 57,217.60 before settling at 57,262.40, down 235.40 points (-0.41%). The index is currently positioned around its short-term moving averages and rising trendline, making the lower levels important for sustaining the existing structure.
“The 56,800–57,000 zone continues to be the crucial support area for Bank Nifty, and holding this band would be important to limit further downside. On the higher side, 57,500–57,750 remains the immediate resistance zone, with a sustained breakout above 57,750 required to bring back stronger buying momentum,” Bagadia added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Wednesday, 19 August: Data Patterns (India), Ingersoll-Rand (India), Hindustan Foods Ltd(NDA), Savita Oil Technologies, and Apcotex Industries.
1] Data Patterns (India): Buy at ₹4737, Target ₹5100, Stop Loss ₹4525
DATAPATTNS is showing strong bullish momentum, currently trading around ₹4,737 after gaining 4.60% with a strong bullish candlestick. The stock has recovered sharply from its recent 100-Day EMA phase and is once again approaching its previous swing-high zone, indicating renewed buying interest. On the technical front, the price is comfortably trading above all major EMAs, confirming a strong broader uptrend.
The recent move above the ₹4,700 zone strengthens the breakout setup. RSI is also holding above 60, supporting positive momentum. If DATAPATTNS sustains above support zone, it could move towards the ₹5,100 target. ₹4,525 remains the crucial stop-loss and support zone.
2] Ingersoll-Rand (India): Buy at ₹4691, Target ₹5050, Stop Loss ₹4432
INGERRAND is displaying strong bullish momentum, currently trading around ₹4,691 after gaining 4.78% and forming a sharp bullish move. The stock has witnessed a strong recovery from its recent consolidation and has decisively moved above its short-term moving averages, indicating renewed buying interest. On the technical front, the price is comfortably trading above the 20-day and 50-day EMA while the 100-day and 200-day EMAs respectively confirm the broader uptrend. The stock is also approaching its recent high zone near ₹4,750, making a sustained breakout important for further upside.
Strong volume supports the current move. If INGERRAND sustains above ₹4,691, it could target ₹5,050, while ₹4,432 remains the crucial stop-loss and support level.
3] Hindustan Foods Ltd(NDA): Buy at ₹635, Target ₹685, Stop Loss ₹600
HNDFDS is showing strong bullish momentum trading at 52-week high, currently trading around 635.60 after a sharp upward move. The stock has decisively moved above its key moving averages, confirming a strong broader uptrend. The recent breakout above the 600 zone, accompanied by healthy volume expansion, indicates sustained buying interest.
However, the RSI near 74 suggests the stock is entering an overbought zone, so some consolidation cannot be ruled out. On the downside, 600 acts as an important support and stop-loss level. As long as HNDFDS sustains above 600, the bullish structure remains intact. A sustained move above 640 could open the way towards 685, aligning with the next upside objective.
4] Savita Oil Technologies: Buy at ₹718, Target ₹780, Stop Loss ₹680
SOTL is maintaining a strong bullish structure, currently trading around 718.40 after recovering from its recent correction. The stock continues to trade comfortably above its key moving averages, confirming that the broader trend remains positive. The recent consolidation around the 680–715 zone indicates that buyers are attempting to build a fresh base after the sharp rally.
A sustained move from current levels could strengthen the breakout setup and trigger further upward momentum. On the downside, 680 serves as an important support and stop-loss level, while the 20-day EMA provides additional trend support. If SOTL sustains above support zone, it could potentially move towards 780, which marks the next major upside target.
5] Apcotex Industries: Buy at ₹632, Target ₹685, Stop Loss ₹600
APCOTEXIND is showing renewed buying interest after consolidating following its earlier sharp rally, currently trading around 632.55. The stock has reclaimed the 600 level and is trading above all its key moving averages, indicating that the broader trend remains firmly positive. The recent recovery from the 600 zone, supported by improving volume, suggests buyers are defending lower levels.
The RSI around 62 indicates positive momentum without being deeply overbought. On the downside, 600 remains a crucial support and stop-loss level. A sustained move above current cmp levels could strengthen the bullish setup and pave the way for a move towards 685, which is the next upside objective.
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.
