Top three stock picks by Ankush Bajaj for 21 August
Buy: FACT Ltd — Current Price: ₹1014.45
- Why it’s recommended:FACT Ltd has shown strong bullish momentum with the daily RSI at 61, MACD at +7, and ADX at 24, indicating steady trend strength. The stock recently formed a double-bottom pattern at ₹905 and broke out above the ₹998 level, confirming a strong continuation setup
- Key metrics:Pattern: Double bottom breakout above ₹998 with momentum follow-through
- MACD: Positive at +7, confirming bullish bias
- RSI: 61, in positive territory
- ADX: 24, reflecting emerging trend strength
- Technical analysis: The double-bottom breakout coupled with momentum indicators signals further upside potential toward ₹1096/
- Risk factors: The fertilizer and chemicals sector is highly dependent on government subsidy policies, raw material availability, and monsoon-driven demand cycles. Rising input costs or subsidy delays could weigh on margins.
- Buy at: ₹1014.45
- Target price: ₹1096
- Stop loss: ₹974
Buy: Marico Ltd — Current Price: ₹751.85
- Why it’s recommended:Marico has shown strong price action, with the RSI at 69, MACD at +3, and ADX at 16, reflecting strengthening momentum. The stock hit a new lifetime high in the previous session, supported by bullish sentiment, and is expected to extend the rally further.
- Key metrics: Pattern: Breakout to lifetime high, bullish continuation
- MACD: Positive at +3, confirming trend strength
- RSI: 69, near overbought but in bullish territory
- ADX: 16, showing emerging trend continuation
- Technical analysis: Sustaining at record highs typically attracts follow-through buying. Momentum indicators point towards an extension of the rally toward ₹775.
- Risk factors: The FMCG sector faces challenges from rural demand volatility, fluctuating raw material prices (notably copra for Marico), and intensifying competition in the personal care and food segment. Margin pressures due to rising input costs could impact near-term performance
- Buy at: ₹751.85
- Target price: ₹775
- Stop loss: ₹740
Buy: Sarda Energy & Minerals Ltd — Current Price: ₹599.55
- Why it’s recommended:The stock is in a strong uptrend with RSI at 73, MACD at +36, and ADX at 41, all confirming robust momentum. It has recently scaled a new lifetime high and also achieved the prior target of ₹700, indicating strong buying interest and the potential for further gains.
- Key metrics: Pattern: New lifetime high with momentum continuation
- MACD: Strongly positive at +36, highlighting bullish momentum
- RSI: 73, showing strength despite being overbought
- ADX: 41, confirming trend strength and continuation.
- Technical analysis: With lifetime highs being scaled and strong momentum intact, the stock is poised to move towards ₹734 in the near term.
- Risk factors: Being in the steel and ferro alloys space, the company’s performance is sensitive to global commodity cycles, iron ore and coal price fluctuations, and demand conditions in export markets like China. A sharp correction in steel prices or policy changes in mining could impact earnings sustainability.
- Buy at: ₹599.55
- Target price: ₹734
- Stop loss: ₹530
Market Recap
On Wednesday, Indian equities carried forward their momentum, with benchmark indices closing strongly in the green, supported by positive global cues and rotation across key sectors. The Nifty 50 advanced 69.90 points or 0.28% to finish at 25,050.55, while the Sensex climbed 213.45 points or 0.26%, ending the session at 81,857.84. However, the Bank Nifty slipped 166.65 points or 0.30% to close at 55,698.50, reflecting profit-booking in select financial counters that capped overall gains.
Sectoral performance highlighted resilience across cyclical and demand-led pockets. Psu bank (−0.27%), the healthcare Index (−0.26%), and oil & gas (−0.13%) witnessed mild weakness, but strength in other areas outweighed the drag. The service sector surged 0.50%, the metal index gained 0.43%, and the infrastructure index rose 0.29%, reflecting strong momentum in cyclicals and consumption-driven plays.
In stock-specific action, Infosys was the top mover with a sharp 3.90% jump, followed by TCS, which rallied 2.73%, and Hindustan Unilever, advancing 2.50%, all riding on favorable sector trends. On the downside, a few heavyweights capped the upside—Bharata Electronics Limited slipped 2.16%, Bajaj Finance eased 1.61%, and Shriram Finance declined 1.60%.
Globally, softer-than-expected U.S. inflation data boosted hopes of a September Federal Reserve rate cut, while domestically, retail inflation cooling to an eight-year low of 1.55% further lifted investor confidence. Together, these macro positives provided strong support for markets, enabling Nifty to comfortably sustain above the 24,600 mark despite sectoral divergences.
Nifty Technical Analysis – Daily & Hourly
The Nifty 50 ended the session on 20 August 2025 with gains of 103 points, settling at 24,980, firmly reclaiming the 25,000 mark on intraday basis. This close above the psychological level is significant because derivatives positioning shows that traders have been aggressively writing puts at 24,900 while the heaviest call concentration has now moved up to 25,100. With this shift, the market is signalling that the short-term support base has been raised higher, and resistance is inching up.
From a technical standpoint, the daily chart is turning constructive. The index is sustaining above its 20-DMA at 24,747 and 40-DEMA at 24,839, with the daily RSI rising to 55 and the MACD narrowing its negative spread at –83, reflecting fading bearish pressure. On the hourly timeframe, the 20-HMA at 24,849 remains above the 40-HMA at 24,765, confirming a bullish crossover. The RSI at 65 and a strongly positive MACD at +95 further reinforce the bullish intraday momentum.
The derivatives setup adds conviction to this view. Total PE OI stands at 14.70 crore vs CE OI of 13.23 crore, giving a bullish skew. Put writers added a massive 4.21 crore contracts, compared to only 1.24 crore addition on the call side, reflecting a strong build-up of support. Importantly, while 25,000 has acted as the key call writing zone historically, the highest fresh call addition has now shifted to 25,500, with max OI concentration at 25,100. This raises the possibility of a sellers’ trap: once Nifty sustains above 25,100, call writers could be forced to cover their positions, triggering a strong short-covering rally towards 25,300–25,500.
With global cues stable—US markets consolidating, crude steady around $65–66, and the rupee holding near 87.6—the domestic technicals and positioning remain the dominant drivers.
In summary, the close above 25,000 is a crucial milestone. If the index crosses and sustains above 25,100, the stage is set for a potential short-covering move that could accelerate the rally towards 25,500. On the downside, 24,850–24,765 remains the critical support zone, below which momentum would weaken.
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.
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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.
