Buy or sell stocks: The Indian equity benchmarks, Sensex and Nifty 50, closed lower on Wednesday, August 26, as investors booked profits ahead of key US inflation data. The Sensex fell 183 points, or 0.24%, to end at 77,472.94, while the Nifty 50 dropped 127 points, or 0.52%, to settle at 24,207.75.
Meanwhile, the broader market displayed relative strength. The Nifty Midcap 150 index ended largely unchanged, while the Nifty Smallcap 250 index gained 0.60%.
Stock market today
Nifty 50
Nifty 50 closed at 24,207.75, down 126.80 points (-0.52%), after failing to sustain the early strength and facing rejection near the 200-Day EMA around 24,375. The index slipped steadily through the session and settled at the day’s low, highlighting renewed selling pressure. RSI at 47.50 versus its average of 51.28 reflects weakening momentum. The immediate support zone is placed at 24,100–24,180, followed by 24,000–24,030, while 24,400–24,450 remains the key resistance area.
“Despite the weak price action, the derivatives setup remains relatively supportive, with PCR at 1.20 and Put OI concentrated around 24,200–24,000, providing a cushion on declines. However, Call OI around 24,300–24,500 indicates supply at higher levels. India VIX eased to 10.57, suggesting limited volatility. Nifty needs to defend 24,100–24,000 to preserve the broader recovery structure, while a sustained move above 24,400 would be required to regain bullish momentum. Until then, the near-term bias remains cautious,” said Sumeet Bagadia, Executive Director at Choice Broking.
Bank Nifty
Bank Nifty closed at 57,783.75, gaining 269.55 points (+0.47%), after opening higher and witnessing buying interest during the first half of the session. The index touched an intraday high of 57,996.05 before consolidating near the higher levels. Strong performance from private banking stocks, particularly Kotak Mahindra Bank and Axis Bank, supported the index and helped it outperform the broader market. The index continues to hold above its rising trendline and short-term moving averages, keeping the overall structure relatively resilient. Immediate support is placed at 57,200–57,360, while 57,700–57,850 remains the key resistance zone.
“The index is now approaching the important 57,850–58,000 resistance band, and a sustained breakout above this zone would strengthen the near-term outlook and could trigger further upside. On the downside, holding above 57,200–57,360 remains important to maintain the prevailing recovery structure, while a decisive break below 57,200 could invite profit booking. Overall, Bank Nifty continues to show relative strength compared with Nifty, but confirmation of the next directional move would come only on a decisive breakout above 58,000,” Bagadia added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Thursday, 27 August: Rossell Techsys, Yatharth Hospital & Trauma Cre Srvcs, Indigo Paints, Lumax Industries, and Kross.
1] Rossell Techsys: Buy at ₹1100, Target ₹1190, Stop Loss ₹1048
ROSSTECH is showing a highly bullish technical structure after breaking out of its recent consolidation phase and entering an expansion move. The stock has been consistently forming higher lows, indicating sustained buying interest and strengthening price action. The breakout suggests that buyers are gaining control and the stock could continue its upward trajectory if momentum remains intact. On the technical front, RSI is currently positioned around 58.98 and trending higher, indicating improving bullish momentum while remaining comfortably below the overbought zone of 70. This leaves sufficient room for further upside in the near term.
A sustained move above the current levels could trigger momentum towards ₹1,190, which becomes the immediate target zone. On the downside, ₹1,048, coinciding with the 20-day EMA, acts as key support and stop-loss.
2] Yatharth Hospital & Trauma Cre Srvcs: Buy at ₹965, Target ₹1050, Stop Loss ₹910
YATHARTH is displaying strong bullish momentum after witnessing a sharp, near-vertical breakout rally, with the stock closing around ₹965.30 after gaining approximately 4.58%. The stock has also moved into fresh all-time-high territory, reflecting strong buying interest and continued price discovery. From a technical perspective, the price is comfortably positioned above its 20-day, 50-day, 100-day and 200-day EMAs, confirming a strong bullish alignment across short-, medium- and long-term timeframes. The absence of immediate overhead resistance at all-time-high levels could support further momentum if buying continues.
The overall structure favours a buy-on-dips strategy rather than chasing sharp moves. Sustained strength above the current zone could open the path towards ₹1,050. On the downside, ₹910 remains the crucial support and stop-loss level for the trade.
3] Indigo Paints: Buy at ₹1186, Target ₹1280, Stop Loss ₹1125
INDIGOPNTS continues to maintain a strong bullish structure, with the stock currently trading around ₹1,186.10 and comfortably positioned above all major daily exponential moving averages. The 20-day EMA, placed around ₹1,129.60, is acting as an immediate dynamic support, while the 50-day, 100-day and 200-day EMAs remain well below the current price, creating a healthy bullish fan structure. This alignment indicates that the broader trend remains firmly positive and that buyers continue to dominate on dips. Momentum is also supportive, with RSI currently around 65.92, reflecting strong bullish strength while still remaining below the overbought threshold of 70.
Sustained trading above current levels could attract further buying interest and push the stock towards ₹1,280. On the downside, ₹1,125 remains the key support and crucial stop-loss level.
4] Lumax Industries: Buy at ₹6160, Target ₹6700, Stop Loss ₹5785
LUMAXIND has delivered a powerful bullish breakout, gaining approximately 4.26% and closing around ₹6,160.50, reflecting strong buying interest in the latest session. The stock has decisively moved above its short-term 20-day EMA near ₹5,748.50 and 50-day EMA around ₹5,562.90, with both averages now positioned positively beneath the price action. This breakout strengthens the short-term trend and suggests that the stock could enter another leg of upward momentum if the move sustains. RSI has surged to approximately 67.89, indicating strong buying velocity and expanding bullish momentum, although it is approaching the overbought zone.
The indicator still leaves some room for further upside before exhaustion. A sustained move above ₹6,160 could support a rally towards ₹6,700. On the downside, ₹5,785 remains the key support and stop-loss level.
5] Kross: Buy at ₹218, Target ₹235, Stop Loss ₹205
KROSS is maintaining a strong short-term bullish trajectory, with the stock currently trading around ₹217.01 and continuing to respect a well-defined ascending trendline that has acted as reliable support since April. The rising trendline indicates that buyers are consistently stepping in on declines, keeping the broader short-term structure positive. Price action remains constructive as the stock holds above its key support zone and attempts to extend the ongoing upward move. Momentum is also favourable, with RSI positioned around 62.42, indicating healthy bullish strength while remaining below the overbought threshold of 70.
This suggests that the stock retains room for further upside if buying momentum persists. A sustained move above the current trading zone could trigger an upward move towards ₹235. On the downside, ₹205 remains the important support and crucial stop-loss level for managing risk.
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.
