The Sensex closed at 80,235.59, down 368 points or 0.46%, while the Nifty 50 ended the day at 24,487.40, falling 98 points or 0.40%.
Meanwhile, the mid-cap and small-cap segments outperformed broader markets, with the BSE Midcap index slipping 0.25% and the Smallcap index inching up 0.04%.
Amid this, here are two stock recommendations by MarketSmith India for 13 August:
Buy: Rainbow Children’s Medicare Ltd (current price: ₹ 1,537.60)
- Why it’s recommended: Strong and consistent financial growth, strategic expansion & market footprint, valuation appears reasonable within peers
- Key metrics: P/E: 59.13, 52-week high: ₹ 1,709.60, volume: ₹15.52 crore
- Technical analysis: Reclaimed its 21-DMA
- Risk factors: Moderate ESG risk and concentrated specialty exposure, geographical concentration risk, regulatory, and compliance Risk
- Buy at: ₹ 1,537.60
- Target price: ₹ 1,740 in two to three months
- Stop loss: ₹ 1,445
Buy: Maruti Suzuki India Ltd (current price: ₹12,800)
- Why it’s recommended: Market leadership and strong brand equity, robust distribution, and after-sales network
- Key metrics: P/E: 27.67; 52-week high: ₹13,680; volume: ₹ 621.17 crore
- Technical analysis: consumption play
- Risk factors: Delays in EV transition and regulatory pressures, evolving consumer preferences, and heightened competition
- Buy at: ₹12,600–12,800
- Target price: ₹14,200 in two to three months
- Stop loss: ₹ 12,200
Nifty 50 recap | 12 August
The Nifty 50 came under significant pressure on 12 August, as lingering concerns over global tariffs and geopolitical uncertainty weighed on investor sentiment. After reaching an intraday high of 24,700, the index reversed sharply, closing near the day’s low at 24,465.65, down over 200 points.
Benchmark indices ended a volatile session in the red, with weakness in Realty, FMCG, and Financial sectors dragging the broader market down. Although the day began on a positive note, gains proved short-lived, as range-bound trading dominated most of the session. Selling intensified in the final hour, amplifying downside momentum. However, selective buying in Auto, IT, Pharma, and Oil & Gas sectors helped cushion losses somewhat.
Market breadth remained negative, with the NSE advance-decline ratio around 1,422 to 1,544, reflecting weak overall sentiment amid mixed sectoral performance.
Technical Outlook
On the technical front, the daily chart showed a small red candle with a long upper shadow, signalling intraday selling pressure and a lack of follow-through strength to breach key resistance levels. This price action suggests fading upward momentum and hesitation near critical hurdles.
The Relative Strength Index (RSI), currently at 40, has rebounded slightly from oversold levels but continues to face resistance from a downward-sloping trendline, indicating a pause in bullish momentum. Meanwhile, the MACD remains in a bearish crossover, trading below its signal line and the zero axis, reinforcing the prevailing negative bias.
According to O’Neil’s market direction methodology, the market status was downgraded to “Uptrend Under Pressure” as the Nifty breached its 50-day moving average (50-DMA) and the distribution day count rose to six.
Support and Resistance Levels
The index attempted to reclaim 24,600 during intraday trading but failed to sustain momentum, closing below 24,500. This leaves the Nifty consolidating within a defined range of 24,300 to 24,600, reflecting broader indecision.
Looking ahead, a decisive close above 24,600 would be a positive technical signal, potentially driving the index toward 24,800–24,850 in the near term. On the downside, the recent swing low at 24,330 now serves as a critical support level. A break below this could invalidate the current recovery attempt and resume a broader corrective phase, with further support near 24,200 and 24,000 levels.
Nifty Bank Performance | 12 August
On Tuesday, 12 August, Nifty Bank opened weak and remained in negative territory throughout the session, reflecting sustained selling pressure. The index formed a bearish candle on the daily chart, characterized by a higher high and higher low price structure, yet it successfully defended its 100-day moving average (100-DMA).
Opening at 55,441.10, the index fluctuated between an intraday high of 55,566.70 and a low of 55,001.50 before closing at 55,043.70. The price action pointed to a lack of buying interest, with sellers dominating most of the day. Most heavyweight constituents ended in the red, intensifying downward pressure, with Canara Bank the sole exception closing in positive territory. Overall, the session underscored weakness in the banking sector, which continued to weigh on market sentiment.
Technical indicators signal caution: the RSI has turned downward and currently hovers near 37, indicating a loss of momentum and growing selling pressure. Meanwhile, the MACD maintains a negative crossover, pointing to sustained weakness in market momentum. Together, these signals reinforce a short-term bearish outlook.
According to O’Neil’s market direction methodology, Bank Nifty remains in an “Uptrend Under Pressure,” highlighting a cautious and fragile market environment.
Despite closing lower, the index held above its 100-DMA, indicating some resilience at lower levels. If buying interest strengthens, Bank Nifty could attempt an upward move toward 56,200, the immediate resistance zone. A breakout above this level may trigger further bullish momentum in the near term. On the downside, 55,000 serves as a critical support level; a decisive breach here could lead to deeper declines and increased volatility, keeping traders on alert in the sessions ahead.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O’Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543).
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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.
