Buy or sell stocks: The Indian stock market closed lower on Thursday, September 3, as concerns over persistent inflation raised fears that global central banks, including the US Federal Reserve, may resort to higher interest rates to contain price pressures.
The Nifty fell 0.17% to settle at 23,873, while the Sensex declined 0.55% to close at 76,152. With Thursday’s losses, both benchmark indices extended their losing streak to four consecutive sessions.
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Nifty 50
Nifty 50 closed at 23,873.45, down 41.00 points (-0.17%), after opening nearly 83 points higher but failing to sustain the gap-up momentum. The index faced persistent profit booking and slipped to close at the day’s low, reflecting continued weakness. RSI at 37.11 versus its average of 45.27 points to subdued momentum, while the index is now approaching the rising trendline support on the daily chart. 23,750–23,800 remains the key support zone, whereas 24,000–24,050 is the immediate resistance.
“The derivatives setup offers some cushion, with PCR at 1.13 and Put OI concentrated around 24,000–23,800, while Call OI around 24,000–24,100 may restrict recovery. India VIX eased to 11.34, indicating relatively contained volatility. Sectoral action remained mixed, with Realty, Media, Private Bank, PSU Bank, Financial Services and Metal gaining, while IT, FMCG, Auto, Pharma, Healthcare and Oil & Gas remained weak. A hold above 23,750 could trigger a technical rebound, but a decisive break below this zone may extend the corrective phase,” said Sumeet Bagadia, Executive Director at Choice Broking.
Bank Nifty
Bank Nifty closed at 57,380.60, gaining 208.60 points (+0.36%), after opening sharply higher by around 325 points and touching 57,753.60. However, the initial strength faded as profit booking emerged throughout the session, taking the index back to its day’s low. Despite the weak closing pattern, Bank Nifty continues to hold above its broader rising trendline and key moving-average structure. RSI at 48.37 versus its average of 50.18 indicates largely neutral momentum. 57,000–57,220 remains the immediate support zone, while 57,600–57,750 is the key resistance band.
“The index needs to sustain above 57,000–57,220 to preserve its broader recovery structure, while a decisive move above 57,750 could revive buying momentum and push the index towards higher levels. Conversely, a breakdown below 57,000 would weaken the technical setup and increase downside risk. Overall, Bank Nifty remains in a consolidation phase with a cautious bias, as the strong opening failed to translate into a firm close and momentum indicators remain near neutral,” Bagadia said.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Friday, 4 September: Kirloskar Oil Engines, Morepen Laboratories, MSTC, IOL Chemicals and Pharmaceuticals, and Vishnu Chemicals.
1] Kirloskar Oil Engines: Buy at ₹2267, Target ₹2460, Stop Loss ₹2137
KIRLOSENG has delivered a constructive trendline breakout, with the stock decisively moving above a prominent downward-sloping resistance trendline through a strong bullish daily candle. This breakout indicates improving buying interest and a potential shift in short-term momentum. From the moving-average perspective, the stock is trading above its key 20-day and 50-day EMAs, which are now positioned as immediate support zones. The ₹2,137 area provides an important technical cushion and coincides with the 20-day EMA, making it a crucial level to monitor on any pullback.
Momentum is also supportive, with RSI positioned around 61.39 and trending upward, indicating strengthening bullish momentum without entering overbought territory. Sustained trading above ₹2,267 could open the path towards the ₹2,460 target, while ₹2,137 remains the crucial stop-loss.
2] Morepen Laboratories: Buy at ₹117.5, Target ₹127, Stop Loss ₹109
MOREPENLAB is displaying a strong parabolic uptrend, with the stock trading around its all-time-high levels and maintaining a powerful bullish price structure. The price action is closely tracking the upper band of its exponential moving averages, reflecting sustained buying pressure and strong trend momentum. Recent breakout candles have also been accompanied by significant volume expansion, providing confirmation of active accumulation and strengthening the validity of the ongoing move. However, momentum has become stretched, with the RSI currently at 81.44, placing it deep inside the overbought zone. This indicates intense buying strength but also raises the possibility of a short-term pause, consolidation or profit booking.
Despite the elevated RSI, the broader trend remains strongly positive. Sustained strength above ₹117.50 could extend the rally towards the ₹127 target, while ₹109 remains the crucial stop-loss and downside support.
3] MSTC: Buy at ₹744, Target ₹805, Stop Loss ₹708
MSTCLTD continues to maintain a strong short-term bullish trend, with the stock closing around ₹744.25, gaining approximately 4.57% and remaining close to its recent highs. The latest price action reflects sustained buying interest and improving momentum. Technically, the stock is trading comfortably above its short- and medium-term exponential moving averages, while the EMA structure remains in a healthy bullish alignment with 20 EMA above 50 EMA, 50 above 100 EMA, and 100 above 200 EMA. This alignment confirms a strong underlying trend and provides a supportive technical backdrop for further upside.
RSI is currently positioned around 64.24, indicating solid bullish momentum while remaining below the overbought threshold of 70. If MSTCLTD sustains above ₹744, the stock could extend towards the ₹805 target. ₹708 remains the crucial stop-loss and support level.
4] IOL Chemicals and Pharmaceuticals: Buy at ₹196, Target ₹212, Stop Loss ₹184
IOLCP is maintaining a strong bullish momentum structure, with the stock trading near its all-time-high levels and continuing to attract buying interest. Price action remains comfortably positioned above all major 20, 50, 100 and 200-day EMAs, confirming a healthy bullish alignment across both short- and long-term timeframes. This moving-average structure indicates that the broader trend remains firmly under buyers’ control and that dips could continue to attract accumulation. Momentum is also strong, with the RSI currently around 71.39, placing the indicator slightly inside the overbought territory.
While this reflects significant buying strength, the elevated RSI also suggests that a brief cooling-off phase or minor consolidation may occur before the next leg higher. Sustained strength above ₹196 could support an upside move towards the ₹212 target, while ₹184 remains the crucial stop-loss and downside support level.
5] Vishnu Chemicals: Buy at ₹688, Target ₹745, Stop Loss ₹655
VISHNU has delivered a strong bullish breakout, with the stock closing around ₹688.45, gaining approximately 4.38% and trading close to its 52-week and all-time-high levels. The latest bullish candle has decisively cleared the previous consolidation resistance near the ₹660 zone, indicating strong buying participation and a fresh expansion in price momentum. The breakout suggests that buyers have successfully overcome the earlier supply zone and that the stock could continue its upward trajectory if strength persists. RSI is currently positioned around 75.29, placing it firmly in the overbought territory and highlighting aggressive momentum.
Although the elevated RSI warrants caution for short-term profit booking or consolidation, strong breakout stocks can sustain elevated momentum during powerful trends. A sustained move above ₹688 could open the path towards the ₹745 target, while ₹655 remains the crucial stop-loss and breakout support.
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.
