Buy or sell stocks: Indian benchmark indices witnessed an unusual divergence on Tuesday, August 4, with the 30-share Sensex climbing more than 0.60% while the NSE Nifty 50 tumbled over 1% during the session. The contrasting moves in the two key indices left investors puzzled.
In the previous trading session, the Sensex had gained 544 points, or 0.70%, to close at 78,639, while the Nifty 50 advanced 391 points, or 1.60%, to finish at 24,774.30. The Nifty rallied nearly 201 points in the final two minutes of Monday’s session following the rollout of the Closing Auction Session (CAS) in the equity cash segment, which came into effect that day.
Stock market today
Nifty 50
Nifty 50 ended the session on a weak note, closing at 24,614.90, down 159.40 points (-0.64%) after opening at 24,703, which was also the day’s high, while touching an intraday low of 24,427.95. The index opened with a 71-point gap-down and witnessed gradual selling pressure throughout the session, reflecting a sustained bearish intraday trend. However, buying emerged near the 24,450 zone during the final hour, helping the index recover sharply and form a long lower wick on the daily candle, indicating demand at lower levels. Technically, Nifty continues to trade above its key moving averages despite the corrective session. The RSI stands at 61.77, indicating momentum remains positive, although India VIX rose to 12.19 and PCR remained at 1.11, suggesting a cautious undertone. Sector-wise, Media, Metal, and PSU Bank emerged as the top gainers, while Realty was the worst-performing sector.
According to Sumeet Bagadia, Executive Director at Choice Broking, the broader trend remains constructive, but the index may witness consolidation after the recent sharp rally.
“Support is placed at 24,350–24,400, while 24,750–24,800 remains the immediate resistance zone. A sustained move above resistance could revive bullish momentum, whereas a break below support may lead to further profit booking. The expected trading range for the next session is 24,350–24,800,” said Bagadia.
Bank Nifty
Bank Nifty closed lower at 57,907.20, declining 340.75 points (-0.58%) after opening at 58,068, which also marked the day’s high, while slipping to an intraday low of 57,352.65. The index opened near the crucial 58,000 resistance zone and witnessed steady selling pressure through most of the session. During the latter half of the day, buying interest emerged around the 57,400 zone, where the 20-day EMA on the daily chart provided support, helping the index recover from its lows and trim part of the losses before the close. The daily candle reflects buying interest near key moving average support, indicating that the broader trend remains intact despite short-term weakness.
Bagadia noted that the index is likely to maintain a Sideways to Bullish bias as long as it holds above the immediate support zone. Support is placed at 57,400–57,600, while 58,500–58,700 remains the key resistance area.
“A decisive breakout above resistance could resume the ongoing uptrend, whereas a breach below support may trigger further corrective moves. The expected trading range for the next session is 57,400–58,700,” he added.
Sumeet Bagadia’s stocks to buy
Sumeet Bagadia recommends five breakout shares to buy on Wednesday, 5 August: Dilip Buildcon, Syrma SGS Technology, Aether Industries, Steelcast, and Vimta Labs.
1] Dilip Buildcon: Buy at ₹467, Target ₹500, Stop Loss ₹447
DBL has delivered a decisive breakout from a long-term falling trendline, signalling a potential reversal in the broader trend after remaining under pressure for several months. The stock has also formed a bullish double-bottom pattern near the 380 zone, indicating strong accumulation and renewed buying interest from lower levels. Technically, DBL is now trading above its 20, 50, 100 and 200-day EMAs, confirming improving momentum and strengthening the overall trend. The recent breakout has been supported by healthy price action and a notable pickup in volumes, while the RSI has witnessed a positive crossover and is currently trading around 64.5, reflecting sustained bullish momentum.
As long as the stock sustains above ₹447, which coincides with the 200-day EMA and acts as a crucial support zone, the momentum could extend towards the ₹500 target in the coming sessions.
2] Syrma SGS Technology: Buy at ₹1422, Target ₹1530, Stop Loss ₹1354
SYRMA continues to maintain a strong higher high–higher low formation, highlighting the presence of a well-established medium-term uptrend. After registering its all-time high near ₹1,517, the stock witnessed a healthy round of profit booking before finding support around its rising 50-day EMA. The subsequent rebound from this key moving average indicates renewed buying interest and reinforces the strength of the prevailing trend. Technically, the stock has reclaimed and is now trading comfortably above all major moving averages, confirming sustained bullish momentum.
The recent recovery has been accompanied by improving price action, suggesting that buyers continue to dominate at lower levels. As long as SYRMA holds above ₹1,354, which also coincides with its 20-day EMA support zone, the stock is likely to extend its upmove towards the ₹1,530 target over the near term.
3] Aether Industries: Buy at ₹1578, Target ₹1700, Stop Loss ₹1492
AETHER continues to exhibit exceptional price strength as the stock trades close to its all-time high levels after delivering a strong breakout from a prolonged consolidation phase. The stock has consistently respected its rising 20-day EMA, using it as a dynamic support throughout the ongoing uptrend, which reflects sustained institutional buying and healthy momentum. It is comfortably trading above its 20, 50, 100 and 200-day EMAs, reaffirming the strength of the prevailing bullish trend. Momentum indicators remain supportive, with the RSI trading around 69.19, indicating strong buying interest without showing any major signs of weakness.
If the stock continues to sustain above its recent breakout zone, it has the potential to extend its rally towards ₹1,700. On the downside, ₹1,492 should be maintained as a strict stop-loss to protect against any unexpected reversal.
4] Steelcast: Buy at ₹339, Target ₹365, Stop Loss ₹321
STEELCAS has resumed its primary uptrend after spending the last few weeks in a healthy consolidation phase near its recent highs. The stock continues to maintain a higher high–higher low structure, indicating sustained buying interest and strong trend continuation. Technically, it is trading above all its key moving averages, with the 20-day and 50-day EMAs acting as immediate dynamic support and reinforcing the bullish setup. The recent breakout above the ₹330 resistance zone has been accompanied by improved volumes, suggesting fresh participation from buyers. Momentum indicators also remain favourable, with the RSI hovering around 66, reflecting strengthening price momentum.
As long as the stock sustains above ₹321, the broader trend is expected to remain positive. A sustained move above the recent breakout zone could pave the way for an advance towards the ₹365 target in the coming sessions.
5] Vimta Labs: Buy at ₹642, Target ₹690, Stop Loss ₹605
VIMTALABS has been witnessing steady accumulation after emerging from a prolonged consolidation phase, indicating that buyers are gradually regaining control of the trend. The stock has formed a strong higher high–higher low pattern and continues to trade comfortably above its key moving averages, reflecting a positive medium-term structure. The 20-day and 50-day EMAs are acting as reliable support zones, while the recent price action suggests improving momentum with sustained buying interest at lower levels. The breakout from its consolidation range above 600 has also been supported by rising trading volumes, adding credibility to the ongoing bullish move. Momentum indicators remain favourable and indicate that the stock has room for further upside. As long as VIMTALABS holds above ₹605, the positive bias is expected to remain intact, with the stock having the potential to move towards the ₹690 target over the coming sessions.
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.
