Two stock recommendations by MarketSmith India:
Buy: Gujarat Mineral Development Corporation Ltd (current price: ₹430)
Why it’s recommended: Strong earnings and reinvestment capability, no leverage and healthy dividend, diversified mineral portfolio and integrated operations, and solid financial metrics
Key metrics: P/E: 19.26 | 52-week high: ₹472.40 | Volume: ₹275.60 crore
Technical analysis: Trending above all its key moving averages with a positive bias
Risk factors: Valuation concerns, volatile revenue and profit trends, cyclicality, and commodity dependence
Buy: ₹430
Target price: ₹485 in two to three months
Stop loss: ₹404
Buy: Amara Raja Energy and Mobility Ltd (current price: ₹1,010)
Why it’s recommended: Market leadership and trusted brands, forged for the EV transition via a giga complex
Key metrics: P/E: 23.12 | 52-week high: ₹1,776 | Volume: ₹124.68 crore
Technical analysis: Downward sloping trendline breakout
Risk factors: Commodity price sensitivity, competitive pressures and substitution threats
Buy at: ₹990-1,015
Target price: ₹1,130 in two to three months
Stop loss: ₹955
How Nifty 50 performed on 1 September
The Indian equity market staged a robust rebound, snapping a three-day losing streak to close Monday’s session in the green. The Nifty 50 ended at 24,625.05, gaining 0.81%, while the Sensex climbed 0.70% to settle at 80,364.49. The market’s positive sentiment was fueled by a confluence of favourable factors, including the better-than-expected Q1FY26 GDP growth of 7.8% and strong auto sales data in August.
Intraday, the indices opened with a gap-up and sustained the positive momentum throughout the day, with the Nifty 50 holding above the crucial 24,500 pivot level. The rally was broad-based, with a strong advance-decline ratio indicating widespread buying interest across sectors. The Transport, Cables, and IT indices led the charge, while the FMCG and Pharmaceutical sectors lagged. Market breadth was decisively positive, with 2,133 stocks advancing versus 934 declining, translating into a robust advance-decline ratio of 2.3.
From a technical standpoint, the index ended its three-day losing streak and formed a higher-high and higher-low price structure, indicating short-term resilience. Momentum indicators, however, remain mixed. The RSI has bounced to 45–46, reflecting some improvement, though still below the neutral threshold. Meanwhile, the MACD has slipped into a negative crossover below the central line, reinforcing a bearish undertone. This divergence suggests that while a short-term recovery is visible, the broader bias remains cautious unless follow-through buying sustains.
According to O’Neil’s methodology of market direction, the market status has been downgraded to an “Uptrend Under Pressure” as Nifty breached its “50-DMA” and the “distribution day count” is at three.
The index rebounded sharply without breaching the previous day’s low, highlighting resilience at lower levels. In the near term, it faces a crucial support zone at 24,350-24,300, with a breach below this band likely to accelerate declines toward 200-DMA at 24,070. On the upside, 24,700, coinciding with the 100-DMA, remains the key resistance. As long as the index trades below this threshold, the overall bias is expected to stay weak. Any pullbacks should be viewed as opportunities to sell on the rise rather than initiate fresh long positions.
How Nifty Bank performed
On Monday, the Nifty Bank opened on a muted note but soon attracted buying interest, helping it to end in the green. The index formed a bullish candle on the daily chart, signalling some recovery momentum. However, it continues to trade below its crucial 100-DMA, indicating underlying weakness. During the session, it opened at 53,658.15, touched a high of 54,002.75, and slipped to the day’s low of 53,658.15. Finally, it settled at 53,977, reflecting cautious optimism amid resistance. Sustaining above immediate resistance levels will be key for further upside. Until then, traders may remain watchful of volatility and potential profit booking.
The RSI has shown a modest uptick but remains around 33, still firmly in the oversold zone, indicating weak momentum. Meanwhile, the MACD continues to trend below its central line with a sustained negative crossover. According to O’Neil’s methodology of market direction, the Nifty Bank remains in an “Uptrend Under Pressure”. In such conditions, a cautious approach is warranted—investors should focus on fundamentally robust and technically resilient stocks, practice disciplined risk management, and deploy capital selectively, limiting exposure to only high-conviction opportunities.
From a technical standpoint, the Nifty Bank’s breach of 100-DMA on Tuesday. It continued to trade below this level, highlighting the persistence of selling pressure. However, today’s price action signalled a notable recovery from the oversold zone, as the index attracted buying interest at lower levels and managed to close on a positive note. Strong support has emerged near the 200-EMA, from which the index staged a rebound. Should this buying momentum sustain, the Nifty Bank could potentially advance toward 54,500-54,900 in the coming sessions. On the downside, immediate support is placed around 52,900, coinciding with the 200-DMA.
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.
