Buy or sell stocks: Indian equity markets ended lower on Monday, 31 August, led by selling pressure in utility, IT and FMCG stocks. Renewed tensions in West Asia pushed crude oil prices higher, raising concerns over inflation and the possibility of interest rates staying elevated for longer.
The 30-share BSE Sensex fell 307.24 points, or 0.40%, to close at 76,957.27. Of its 30 constituents, 20 ended in the red, while 10 posted gains. During the session, the index declined as much as 513.19 points, or 0.66%, to hit 76,751.32.
The 50-share NSE Nifty also ended lower, declining 95.25 points, or 0.39%, to settle at 24,080.40.
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Nifty 50
Nifty 50 closed lower at 24,080.40, declining 95.25 points (-0.39%), after opening at 24,117.55, with an intraday high of 24,128.70 and low of 23,993.60. The index opened with a 58-point gap-down and witnessed selling pressure initially, but buying emerged near the 24,000 level, where the index found strong support and recovered from the day’s low. The daily candle reflects buying interest at lower levels, indicating that 24,000 is developing as an important base.
According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty continues to trade below all key moving averages, keeping the broader trend cautious. RSI stands at 43.70, while India VIX rose to 11.19, up by 4.78% indicating an increase in market volatility.
“Technically, Nifty is likely to maintain a Sideways bias as the index continues to hold the 24,000 zone despite remaining below its key moving averages. Immediate support is placed at 23,900–23,950, while 24,200–24,250 remains the key resistance zone. A sustained move above 24,250 could support a recovery towards higher levels, whereas a break below 23,900 may resume the selling pressure. The expected trading range for the next session is 23,900–24,250. Sector-wise, Bank, Pharma, Private Bank and Healthcare were among the top gainers, while FMCG, Media, Metal, Chemical and Cement remained among the major laggards,” said Bagadia.
Bank Nifty
Bank Nifty opened at 57,353.75, made a low of 57,187.35 and a high of 58,024.95 before closing at 58,024.95, gaining 528.65 points or 0.92%. The index initially failed to sustain above the 57,500 level and witnessed a sharp decline, but strong buying emerged near the 57,200 support zone. The 5-minute price action shows a gradual recovery through the session, followed by a strong upside move during the closing hours.
Bagadia noted that on the daily chart, Bank Nifty formed a strong bullish candle and decisively broke above the 20 EMA and 50 EMA, closing above both moving averages. RSI improved to 56.89, indicating strengthening momentum. The broader structure, however, remains range-bound, with the index still approaching the upper boundary of the formation.
“Going ahead, 57,200–57,300 will act as the immediate support zone, while 58,700–58,800 remains the key resistance area. Sustaining above the 20 and 50 EMA keeps the near-term structure positive, while a decisive move above the resistance zone can further strengthen the bullish setup. On the downside, failure to hold 57,200 could bring renewed selling pressure. The expected trading range for the next session is 57,200–58,800 with sideways to bullish bias,” he added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Tuesday, 1 September: Lumax AutoTechnologies, Vijaya Diagnostic Centre, Tamilnad Mercantile Bank, EPL, and Sansera Engineering.
1] Lumax AutoTechnologies: Buy at ₹2078, Target ₹2260, Stop Loss ₹1965
LUMAXTECH is showing a strong short-term bullish structure after staging a sharp breakout from a prolonged consolidation base around the ₹1,500 zone during August. The stock has entered an expansion phase, supported by strong price action and sustained buying interest. In the latest session, the stock closed around ₹2,078.50, gaining approximately 4.68%, with the candle closing strongly near its immediate high, reflecting continued buyer dominance. The broader price structure remains firmly positive, supporting the possibility of further upside. RSI is currently positioned around 70.11, indicating powerful bullish momentum and entry into overbought territory.
Although some near-term consolidation cannot be ruled out, momentum can remain strong during such breakout phases. Sustained strength above ₹2,078 could support a move towards the ₹2,260 target, while ₹1,965 remains the crucial stop-loss.
2] Vijaya Diagnostic Centre: Buy at ₹1518, Target ₹1635, Stop Loss ₹1450
VIJAYA continues to maintain a constructive bullish structure, with the stock trading comfortably above its key Exponential Moving Averages, indicating that buyers remain firmly in control of the prevailing trend. The price structure reflects sustained strength and suggests that the stock could continue its upward trajectory if it maintains its position above the important moving-average support zones. The alignment of the EMAs provides a favourable technical backdrop for further upside, while dips towards the short-term moving averages can continue to offer opportunities for accumulation. Momentum is also supportive, with the RSI (14) currently at 63.91, indicating healthy bullish momentum without entering an excessively overbought zone.
This leaves sufficient room for the stock to extend its rally before momentum becomes stretched. A sustained move above ₹1,518 could open the way towards the ₹1,635 target, while ₹1,450 remains the crucial stop-loss level.
3] Tamilnad Mercantile Bank: Buy at ₹938, Target ₹1010, Stop Loss ₹878
TMB continues to exhibit a strong bullish trend, with the stock trading around ₹932.60 and positioned comfortably above all major 20, 50, 100 and 200-day EMAs. This healthy moving-average alignment confirms a powerful broader uptrend and indicates that buyers continue to maintain control. The stock is also trading close to its all-time-high zone, reflecting strong underlying momentum. However, RSI is currently positioned at 69.54, almost touching the conventional overbought threshold of 70.
This suggests that while momentum remains strongly positive, a short-term pause or minor profit booking could emerge as buyers become temporarily exhausted. Such consolidation would be healthy within the broader uptrend. If TMB sustains above its recent high zone after any cooling-off phase, further upside towards the ₹1,010 target remains possible. ₹878 acts as the crucial stop-loss and support level.
4] EPL: Buy at ₹262, Target ₹283, Stop Loss ₹249
EPL is maintaining a healthy medium-term bullish structure after delivering a strong and aggressive breakout, followed by a minor corrective cooling-off phase. The stock continues to trade with its key EMAs stacked in bullish alignment, confirming strong underlying trend support. The previous rally was accompanied by a significant volume expansion, highlighting strong buying participation and validating the breakout. More recently, the pullback has occurred on comparatively lower volumes, indicating that selling pressure remains limited. Importantly, the stock has successfully tested and rebounded near its 20-day EMA, demonstrating that buyers are actively defending this dynamic support zone.
RSI is currently around 63.15, having cooled from an earlier overbought reading near 80, providing additional breathing room for another upward move. A sustained recovery above ₹262 could help the stock retest its recent highs and move towards the ₹283 target, while ₹249 remains the crucial stop-loss.
5] Sansera Engineering: Buy at ₹4018, Target ₹4333, Stop Loss ₹3820
SANSERA remains in a strong and well-defined uptrend, with the stock consistently forming higher highs and higher lows, reflecting sustained buyer dominance. In the latest session, the stock closed around ₹4,018, gaining approximately 4.12%, highlighting strong positive price action. The Exponential Moving Averages are perfectly aligned in a bullish structure, reinforcing the broader trend and providing dynamic support during potential short-term corrections. The 20-day EMA near ₹3,784.70 serves as the closest important baseline for the ongoing rally. Momentum remains strong, with RSI currently positioned at 67.71, indicating dominant buying interest while approaching the overbought threshold of 70.
Although a brief consolidation cannot be ruled out at elevated levels, the broader setup remains positive. Sustained strength above ₹4,018 could drive the stock towards the ₹4,333 target, while ₹3,820 remains the crucial stop-loss.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
