The Indian stock market stayed in positive territory for the fourth consecutive session on Tuesday, as GST rationalisation and India’s credit rating upgrade kept investor risk appetite intact. The Sensex closed 371 points, or 0.46% higher, at 81,644.39, while the Nifty 50 settled at 24,980.65, up 104 points.
Markets are now gearing up for some strong news-based action flows. The road ahead seems to be definitely favouring the bullish camp.
Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Wednesday.
ZUARI: Buy (Cmp ₹339.05) and dips to ₹295, stop ₹287, target ₹375-390
- Why it’s recommended: Zuari Agro Chemicals Limited is an India-based fertilizer manufacturing company. The Company is engaged in the business of manufacturing, trading, and marketing of chemical fertilizers and fertilizer products. The company’s last Q4 performance has not been as per expectations however the charts after showcasing the selloff that had indicating a revival in progress and this could be an opportunity to consider this stock as a buying opportunity.
- Key metrics:
- P/E: 5.25,
- 52-week high: ₹390,
- Volume: 336.06K.
- Technical analysis: Support at ₹260, resistance at ₹425.
- Risk factors:High volatility, elevated borrowing levels, negative investor sentiment, and long-term bearish trends.
- Target price: ₹375-390 in 1 month.
- Stop loss: ₹287.
TAJGVK: Buy (Cmp ₹435.60) and dips to ₹420, stop below ₹410, target ₹475-490
- Why it’s recommended: Taj GVK Hotels & Resorts Limited is a joint venture between Indian Hotels Company Limited (a Tata Group company) and the Hyderabad-based GVK Group. It owns and operates a portfolio of Taj branded hotels, resorts, and palaces. The stock has absorbed the recent negative fundamentals and has been in a forming rounding patterns at the TS & KS lines and generating steady buying interest. Any profit booking seen is quickly being bought into indicating that the trends are poised for continued upside. Further , the long body candle seen on Tuesday indicates potential to move higher.
- Key metrics:
- P/E: 22.05,
- 52-week high: ₹331.45
- Volume: 596.86K
- Technical analysis: Support at ₹395, resistance at ₹425.
- Risk factors: Region-specific economic and socio-political conditions, Intense competition and changing travel trends.
- Target price: ₹475-490 in 1 month.
- Stop loss: ₹410.
IIFL Buy (Cmp 471.90) and dips to ₹450 stop below ₹435 target ₹505-515
- Why it’s recommended: IIFL Finance Limited, also known as IIFL, is a prominent diversified non-banking financial company (NBFC) headquartered in Mumbai, India. It is a leading player in the financial services sector in India. Being a dominant player the sock has been consolidating after a sharp rise seen in July and is now showing some signs of recovery above the current consolidation and a potential to move to the upside after profit booking that had emerged.
- Key metrics:
- P/E: 58.90,
- 52-week high: ₹560.60
- Volume: 2.26M.
- Technical analysis: Support at ₹416, resistance at ₹525.
- Risk factors: Regulatory and compliance risks, deterioration in asset quality and increased competition in the NBFC sector.
- Buy above: CMP and dips to ₹450.
- Target price: ₹505-515 in 1 month.
- Stop loss: ₹435.
Stock Market Recap
Bulls maintained their dominance on Dalal Street for the fourth consecutive session on 19 August, with Indian equity indices continuing their upward momentum. The Nifty briefly crossed the 25,000 mark during intraday trade, driven by strong buying in heavyweight stocks and broad-based participation across sectors—except pharma, which remained subdued. However, profit booking at higher levels pulled the index back below the milestone by the close. The Sensex ended the day 370.64 points higher at 81,644.39, while the Nifty settled at 24,980.65, up 103.70 points.
Midcap and smallcap indices outperformed, each gaining around 1%. Among the top gainers on the Nifty were Tata Motors, Adani Ports, Reliance Industries, Hero MotoCorp, and Bajaj Auto, while Dr Reddy’s Laboratories, Cipla, Hindalco Industries, Bajaj Finserv, and M&M were the key laggards.
Reliance continues to attract investor interest following its FMCG push, and analysts are watching the 24,800–25,000 zone closely for signs of further direction.
Outlook for Trading
Technically, the Nifty has managed to hold on to the gap that was created at the start of the week. With the gap are being held in its recent trading range once again marking a decisive turn. For days, the index had oscillated between roughly 24800 and 25,100. While the breakout hunters have been surprised on either side the trends are slowly and steadily shifting the bias to the upside as uncertainty is seen reducing. The Fibonacci resistance at the 25000 mark continues to be a hurdle as we enter the coming trading sessions. Chart watchers will note the bullish candlestick on the daily chart, coupled with rising volumes, as an encouraging sign that the rally has room to run.
Options market dynamics further reinforced the bullish narrative. Ahead of monthly expiry, participants aggressively sold puts and unwound calls, effectively skewing the delta toward upside risk. This combination of put writing and call reduction indicates that hedgers were securing floors while letting upside exposure peel off, a classic setup for continued gains when spot prices climb—a phenomenon sometimes dubbed “bullish aggression”.
The Nifty Spot is firmly above the consolidation zone that we have been mentioning however the median line resistance around 25000 will be a key level to watch out for as we move ahead into the August series. Further evidences in the form of key sectoral drivers firing on all cylinders, our constructive stance remains intact.
I prefer looking at Nifty Spot charts for short-term support which shifts to the 24800 area, while resistance looms near 25,100. If the markets sustain this momentum, a run toward 26,000–26,200 becomes a realistic expectation in coming weeks. For now, bulls are beginning to take control and positions that are getting aligned with this trend stand to benefit from the prevailing optimism.
The onus now is on the other indices to play catch up else what we saw on Tuesday will get more tailwinds. A buy on dip market has now been initiated and we have to take note of this fact as we head into the coming sessions.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
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.
