Stock recommendations for 24 September from MarketSmith India

The market displayed a clear sectoral divergence, with weakness in select sectors outweighing strength elsewhere. The IT sector was the primary drag on the indices, extending its losses for a second consecutive session amid persistent concerns over the new U.S. H-1B visa policy. FMCG and Realty stocks also faced profit booking.

Two stock recommendations by MarketSmith India:

Buy: Deepak Fertilizers and Petrochemicals (current price: ₹ 1,518)

• Why it’s recommended: Strong volume growth & specialty fertilizer push, capex, capacity expansion, and backward integration
• Key metrics: P/E: 18.56, 52-week high: ₹1,779, volume: ₹106.25 crore
• Technical analysis: Reclaimed its 100-DMA on above average volume
• Risk factors: Commodity input cost volatility & global competition, segmental margin pressures & demand cyclicality
• Buy: ₹ 1,500–1,525
• Target price: ₹1,730 in two to three months
• Stop loss: ₹1,420

Buy: Lumax Auto Technologies (current price: ₹1,176)

• Why it’s recommended: Strong financial momentum and scale-up, strong financial momentum and scale-up
• Key metrics: P/E: 31.12; 52-week high: ₹1,250; volume: ₹ 51.07 crore
• Technical analysis: Reclaimed its 50-DMA on above average volume
• Risk factors: Execution risk of new ventures & acquisition integration
• Buy at: ₹1,160–1,180
• Target price: ₹1,380 in two to three months
• Stop loss: ₹ 1,080

Nifty 50 recap

On 23 September, Indian equities ended marginally lower, with Nifty 50 slipping 32.85 points, or 0.13%, to close at 25,169.50, after oscillating between 25,084.65 and 25,261.90 through the session. Sensex also closed in the red, reflecting cautious investor sentiment. Market breadth remained weak, dragged down primarily by IT stocks on concerns around a proposed hike in U.S. H-1B visa fees. Banking counters also saw selling pressure, while select Auto names found support on expectations of festive season demand. The overall tone was subdued as global policy uncertainties tempered risk appetite.

Nifty 50 encountered resistance around 25,450 and subsequently saw profit booking, indicating some consolidation after the recent uptrend. Momentum signals suggest a healthy, though moderating setup. The RSI has cooled off from overbought levels and now stands at 58, but continues to hold above the downward-sloping trendline breakout, reinforcing underlying strength. The MACD remains in positive territory, indicating that the broader trend bias stays constructive despite near-term volatility. Overall, the technical structure suggests that while some pause or pullback cannot be ruled out, the index retains a favourable outlook as long as it sustains above immediate support levels.

According to O’Neil’s methodology of market direction, the market status has been downgraded to an “Uptrend Under Pressure” as Nifty breached its “50-DMA” and the “distribution day count” is at one.

The index extended its losing streak and settled just above 25,150, indicating continued consolidation at higher zones. As long as the index sustains above 25,150, it is expected to trade within a defined range of 25,150–25,350. However, a decisive close below 25,150 could trigger additional downside pressure, potentially dragging the index toward 25,000. Price action around these support levels will be crucial in gauging the index’s next directional move.

How Nifty Bank Performed

Bank Nifty closed firm on 23 September, ending at 55,509.75, up 225 points or 0.41%, supported by selective buying in public sector lenders and mid-tier banks. The index traded in a broad range of 55,159–55,662, recovering from early weakness to settle near the day’s higher levels. Gains in stocks such as SBI, Canara Bank, and IndusInd Bank helped offset mild softness in heavyweights like HDFC Bank and ICICI Bank.

The index opened the session on a muted note and slipped toward 55,150 in early trade, reflecting initial weakness. However, buying interest emerged around these lower levels, driving a steady recovery through the late morning. Post-noon, the index gathered momentum and surged past 55,600, marking the intraday high, before consolidating in a narrow band during the final hours. It eventually closed at 55,509.75, up 225 points (0.41%) from the previous close of 55,284.75. The momentum indicator, RSI, climbed higher along with positive a crossover on MACD.

At the current juncture, Bank Nifty is approaching a critical technical zone, with immediate resistance placed in the 55,800–55,900 range, which coincides with its 100-DMA. A sustained breakout above this band would significantly improve the medium-term outlook and could trigger fresh upward momentum. In such a scenario, the index may advance toward 56,600, with further potential to test 57,200 in the near term. On the downside, strong support is positioned in 54,900–54,800, and a breach below this level could accelerate selling pressure, paving the way for a deeper correction.

About MarketSmith India:

MarketSmith

India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.

Website:

Trade name: William O’Neil India

Pvt. Ltd.

Sebi Registration No.: INH000015543

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.

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On 22 September, the Indian equities ended lower, with the Nifty 50 slipping 124.7 points (0.49%) to close at 25,202, while the Sensex lost more than 450 points, dragged down by IT heavyweights. Sentiment was hit after the US announced a sharp hike in H-1B visa fees, triggering a broad sell-off in technology majors such as Infosys, TCS, and Wipro. While defensives, select infrastructure, and shipping names managed to find buyers, they were insufficient to offset the sharp sectoral weakness.

Two stock recommendations by MarketSmith India:

Buy: Supriya Lifescience Ltd. (current price: ₹743)

Why it’s recommended: Strong regulatory credentials and certifications, backward integration and operational efficiencies, credit rating and financial strength, good margins and profitability trends, management credibility, and transparency.

Key metrics: P/E: 32.82 | 52-week high: ₹842 | Volume: ₹38.60 crore

Technical analysis: Reclaimed its 100-DMA on above-average volume

Risk factors: Margin pressure/product and geographic mix risks, regulatory risks, dependency on export and global demand trends, competition risk, raw material, and input cost volatility.

Buy: ₹735-750

Target price: ₹860 in two to three months

Stop loss: ₹680

Buy: Unicommerce Esolutions Ltd (current price: ₹149.50)

Why it’s recommended: Strong revenue and margin expansion, acquisition, and platform synergies

Key metrics: P/E: 81.32 | 52-week high: ₹264 | Volume: ₹24.51 crore

Technical analysis: Tight range breakout

Risk factors: High operating expense growth and platform investment burden

Buy at: ₹1,610-1,640

Target price: ₹1,940 in two to three months

Stop loss: ₹1,490

How the Nifty 50 performed on 22 September

On Monday, the Indian equity market experienced a broad-based sell-off, ending a recent bullish run, with benchmark indices closing sharply lower. The decline was largely fueled by a significant drop in the IT sector following a new US policy on H-1B visa fees.

The Nifty 50 concluded the session at 25,202.40, down 124.65 points, or 0.49%, while BSE Sensex tumbled 466 points, or 0.56%, to settle at 82,159.98. Market breadth was negative, with the advance-decline ratio indicating widespread selling pressure as a majority of stocks ended in the red. The IT and Pharmaceutical sectors were the primary laggards as both are sensitive to US policy changes. Conversely, a handful of sectors showed resilience, with PSU Banks, power, and realty stocks outperforming. The Adani Group was a notable exception, with several of its companies hitting the upper circuit, continuing their rally from a favourable regulatory outcome.

The index encountered resistance around 25,450 and subsequently saw profit booking, indicating some consolidation after the recent uptrend. Momentum signals suggest a healthy, though moderate setup—the RSI cooled off from overbought territory and is now placed at 58, yet continues to hold above the downward-sloping trendline breakout, reinforcing underlying strength. Meanwhile, the MACD remains in a positive territory, reflecting that the broader trend bias is still constructive despite near-term volatility. Overall, the technical structure suggests that while some pause or pullback cannot be ruled out, the index retains a favourable outlook as long as it sustains above immediate support levels.

According to O’Neil’s methodology of market direction, the market status has been downgraded to an “Uptrend Under Pressure” as the Nifty breached its “50-DMA” and the “distribution day count” is at one.

The index extended its losing streak and settled marginally above 25,200, reflecting continued consolidation at higher levels. As long as the index holds above 25,150, it is likely to trade within a range of 25,150-25,350. However, a decisive close below 25,150 could invite further downside pressure, with the index potentially sliding toward 25,000. Monitoring price action around these support levels will be critical in determining the next directional move.

How did Nifty Bank perform yesterday?

The Nifty Bank opened on a weak note and traded sideways before gaining buying momentum, which briefly lifted the index into positive territory. However, it failed to sustain these gains and succumbed to renewed selling pressure post-noon, erasing intraday advances.

The index has consequently formed a bearish candle on the daily chart with a lower-high and lower-low price structure, signalling caution among participants. Notably, it closed near its 50-DMA, highlighting the importance of this zone as a short-term pivot. Such price action reflects hesitation at higher levels, keeping traders on guard for directional clarity.

During the session, the Nifty Bank opened at 55,429.30, touched an intraday high of 55,666.35, slipped to a low of 55,215.60, and eventually settled at 55,284.75. The momentum indicator RSI eased marginally to 54, pointing to waning strength, while the MACD continued to hover with a positive crossover above the central line, offering some underlying resilience.

Under O’Neil’s market direction framework, the index remains categorized as “Uptrend Under Pressure”, which implies that while the broader trend stays constructive, risks of pullbacks cannot be ignored. This mixed setup calls for cautious optimism supported by disciplined risk management. Overall, the technical picture suggests a balanced but fragile outlook.

At the current juncture, the Nifty Bank faces immediate resistance in 55,800–55,900, and a decisive breakout above this band could strengthen the medium-term outlook and unleash fresh momentum. On the downside, support lies in 54,900-54,800, and a breach of this level may intensify selling pressure and open the gates for deeper correction. Traders should closely monitor price action around these crucial levels to gauge directional strength. A sustained move beyond resistance would attract momentum-driven participation, while a fall below support could shift sentiment decisively bearish. Thus, key levels remain critical in shaping the near-term trajectory.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registration No.: INH000015543

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.

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