Top three stock picks by Ankush Bajaj for 3 September
Buy: HBL Engineering Ltd — Current Price: ₹854.45
Why it’s recommended: HBL Engineering is trading at a fresh lifetime high, reflecting strong bullish sentiment. The daily RSI at 81, MACD at 56, and ADX at 46 highlight robust momentum with trend strength. The stock is well supported by major EMAs, indicating sustained buying interest. Recent sharp rallies across capital goods stocks further strengthen the technical breakout.
Key metrics:
Pattern: Lifetime high breakout supported by EMAs
RSI: 81, strong overbought momentum
MACD: Positive at 56
ADX: 46, strong trend strength
Technical view: Continuation of bullish trend towards higher zones, as long as price sustains above support.
Risk factors: Valuation appears stretched after a sharp rally, making the stock vulnerable to profit-taking.
High volatility possible after nearly 40% rise in August.
Any reversal in capital goods sentiment may lead to quick corrections.
Buy at: ₹854.45
Target price: ₹894
Stop loss: ₹835
Buy: National Aluminium Co. Ltd (NALCO) — Current Price: ₹200.55
Why it’s recommended: NALCO has broken into a new lifetime high after several failed attempts, with technical indicators supporting continuation. Daily RSI at 65, MACD at 1, and ADX at 12 suggest steady momentum building up. The breakout is supported by rising aluminium demand globally, while strong domestic positioning adds to confidence. A sustained move above ₹200 could extend the rally towards ₹220.
Key metrics:
Pattern: Lifetime high breakout
RSI: 65, bullish zone
MACD: Mildly positive at 1
ADX: 12, trend strength building
Technical view: Breakout points to further upside potential with immediate target at ₹220.
Risk factors: Business remains cyclical and heavily dependent on global aluminium prices.
Regulatory risks like higher royalties on bauxite can affect margins.
Elevated ESG risk profile compared to peers.
Exposure to fluctuations in coal and power costs.
Buy at: ₹200.55
Target price: ₹220
Stop loss: ₹191
Buy: CG Power and Industrial Solutions Ltd — Current Price: ₹739.65
Why it’s recommended: CG Power has broken above its key resistance at ₹720 to register a new 52-week high, confirming strength in trend continuation. The daily RSI at 73, MACD at 9, and ADX at 14 underline positive momentum. Strong investor interest in its semiconductor and industrial projects provides fundamental backing to the breakout, while the stock’s ability to hold above ₹724 validates further upside.
Key metrics:
Pattern: Breakout above ₹720 resistance
RSI: 73, bullish strength
MACD: Positive at 9
ADX: 14, steady trend development
Technical view: Sustaining above ₹724 paves the way for a rally towards ₹770.
Risk factors: Valuations remain at a premium versus industry peers, leaving less margin of safety.
Supply-chain challenges (e.g., wafer sourcing for OSAT facility) could impact growth.
High expectations priced in; any earnings miss may trigger correction.
Buy at: ₹739.65
Target price: ₹770
Stop loss: ₹724
Market recap
Sectoral trends were largely mixed. Strength was visible in cyclicals and industrials, with the financial services index gaining 0.66%, the banking index up 0.63%, and the service index higher by 0.36%. However, bearish pressure was evident in defensives, as the PSE index dropped 1.16%, FMCG eased 1.12%, and the energy sector lost 0.98%.
In stock-specific action, Power Grid led the gainers with a strong 2.45% jump, followed by Tata Consumer, which advanced 2.33%, and Nestle India, rising 2.26% on firm demand. On the downside, select heavyweights weighed on indices—M&M slipped 2.44%, Dr. Reddy’s declined 2.05%, and Kotak Mahindra Bank fell 1.33%.
Nifty daily and hourly technical analysis
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The Nifty 50 ended the session of 2 September 2025, which also marked its first Tuesday weekly expiry, with a weak close of 24,579.60, down 45 points or 0.18%, after failing to sustain above the 40-hour moving average placed at 24,663. On the daily chart, the 20-DMA at 24,695 and 40-DEMA at 24,800 are acting as key hurdles, and despite a recent bounce, renewed selling pressure was visible in heavyweights like M&M, Dr. Reddy’s, Kotak Mahindra Bank, and ICICI Bank, which dragged the index lower.
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On the downside, the final crucial support remains at 24,320, and a breach of this level would confirm a head-and-shoulders breakdown, opening the door for lower levels. On the upside, the 24,800 and 25,000 zones will act as strong resistance.
Momentum indicators are showing weakness with the daily RSI at 44, MACD at –74 and ADX at 24, reflecting a strengthening bearish bias, while on the hourly chart, the RSI is also at 44, ADX at 30 indicates rising trend strength, but the MACD has turned into a positive crossover, suggesting the possibility of a short-term relief bounce. Overall, the index remains fragile with a bearish tilt, and unless Nifty reclaims the 24,800-25,000 zone, selling pressure is likely to persist, with the 24,320 mark being the key level to watch for breakdown confirmation.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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 guarantee 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.
