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Indian equities extended losses for a second straight session on Tuesday, though a late recovery on the monthly expiry day helped the benchmarks pare most of their intraday decline. Nifty 50 fell 64.05 points, or 0.28%, to close at 22,716.20, while Sensex slipped 242.65 points, or 0.33%, to settle at 72,529.07. Sentiment remained fragile as Brent crude rose to around $107 per barrel on persistent U.S.-Iran supply worries, even as both sides held separate talks with mediators to end the war. Elevated US bond yields and heavy foreign investor selling of more than ₹5,300 crore added to the caution on Monday. Nifty ended the September derivatives series about 6% lower. Consumer durables, IT, and autos were the weakest sectors, falling between 1.3% and 2%, while FMCG and oil and gas also declined. Metals and healthcare bucked the trend with modest gains. Titan fell more than 3%, and PB Fintech lost another 6%, taking its four-session slide to 43% on insurance regulatory concerns. Breadth stayed negative, with 1,529 stocks advancing, 2,039 stocks declining, and 111 remaining unchanged. Two stock recommendations by MarketSmith India: Buy: Rashi Peripherals Limited (current price: ₹925) - Why it’s recommended: Beneficiary of rising demand for AI infrastructure, cloud computing, data centres, cybersecurity and enterprise digitalization across India. Strong nationwide distribution network with 80+ global technology brands and expansion into cloud, semiconductor, and value-added technology solutions driving scalable growth. - Key metrics: P/E: 18.05, 52-week high: ₹967.70, volume: ₹50.64 crore - Technical analysis: Trendline Breakout - Risk factors: Operates in a low-margin ICT distribution business, making profitability sensitive to pricing pressure and product mix changes. Revenue is exposed to technology demand cycles and dependence on key global OEM/vendor relationships, which can affect growth and margins. - Buy: ₹916–930 - Target price: ₹1,080 in two to three months - Stop loss: ₹865 Buy: Sona BLW Precision Forgings Limited (current price: ₹816) - Why it’s recommended: Strong EV plays with a growing order book from electric driveline systems, traction motors, and differential assemblies, supported by increasing global EV penetration. Diversified global customer base and expansion into railways, suspension motors, sensors and advanced mobility technologies providing multiple growth avenues. - Key metrics: P/E: 70.30, 52-week high: ₹844.00, volume: ₹351.02 crore - Technical analysis: Trendline Breakout - Risk factors: Growth remains sensitive to global automotive and EV demand cycles, with slower EV adoption potentially affecting future order inflows. Exposure to OEM concentration, export markets, tariffs, currency fluctuations and geopolitical risks can impact revenue visibility and margins. - Buy at: ₹808–820 - Target price: ₹880 in two to three months - Stop loss: ₹792 Nifty 50 recap On 29 September, Indian equities ended a volatile session modestly lower with Nifty 50 settling at 22,716.20, down 64 points or 0.28%, after recovering sharply from an intraday low of 22,569.65. Sensex also closed in the red. Sentiment remained cautious amid elevated crude oil prices, U.S. Treasury yields above 5%, and continued uncertainty around the U.S.-Iran conflict, while persistent foreign investor selling added pressure. On the sectoral front, consumer durables (-2.71%), realty (-2.00%), IT (-1.48%), and auto (-1.33%) led the declines. Whereas, metal (+0.78%) and pharma (+0.64%) provided support. Pharma stocks benefited from optimism around tariff exemptions for select Indian specialty drugs. Meanwhile, Tata Group counters remained under pressure. Market breadth was weak, with 1,529 stocks advancing, 2,039 stocks declining, and 111 remaining unchanged. This translates into an advance-decline ratio of about 0.75. Nifty 50’s daily price structure remains decisively bearish, with the index closing at 22,716.20 after extending its sequence of lower-highs and lower-lows. Price action has broken below the horizontal consolidation base visible on the chart, accompanied by a noticeable expansion in volume, reinforcing the significance of the breakdown. The index is also trading below all its key moving averages, while their downward alignment reflects persistent selling pressure and a firmly negative underlying trend. The earlier rising trendline has already been violated, and subsequent price action has failed to rebuild a sustainable upward structure. Momentum indicators corroborate the weakness: the daily RSI has slipped to 26.71, below its signal average of 30.50 and into oversold territory, indicating strong downside momentum while also increasing the possibility of a short-term technical rebound. The MACD remains firmly negative, with the MACD line around -297 below the signal line near -248 and the histogram at approximately -49. Nifty 50 extended its losing streak, testing a fresh low in 22,500–22,600 before staging a sharp recovery from lower levels, indicating some buying interest at the decline. On the downside, 22,600–22,500 remains an important support zone; a sustained break below this band could intensify selling pressure and expose the index to 22,200–22,000. On the upside, any near-term recovery is likely to encounter initial resistance around 23,000–23,100, a zone that has now emerged as a key technical hurdle following the recent breakdown. A sustained move above this band would be required to improve the short-term price structure and moderate the prevailing bearish bias. How did Nifty Bank perform On Tuesday, Banking stocks extended losses for a second straight session though a late recovery on monthly expiry day helped Nifty Bank trim most of its decline. The index fell 211.70 points, or 0.39%, to close at 54,259.95, after sliding more than 1.2% in early trade to a three-mont h low. Elevated crude oil prices near $107 per barrel, high U.S. bond yields, and continued foreign investor selling kept sentiment cautious ahead of the RBI's policy decision on 7 October. HDFC Bank was the biggest drag on the index, falling nearly 1%, while Axis Bank slipped about 0.9% and IndusInd Bank lost around 1.5%. ICICI Bank and State Bank of India ended modestly lower. Among public sector lenders, Union Bank of India and Canara Bank fell more than 1%, while Punjab National Bank and Bank of Baroda bucked the trend with small gains after Monday's sharp selloff. Kotak Mahindra Bank was the standout performer, rising more than 1%, while Federal Bank ended marginally higher. Bank Nifty’s daily structure has turned decisively bearish, with the index closing at 54,259.95 after extending its recent sequence of lower-highs and lower-lows. The latest decline has been accompanied by higher trading volume, indicating stronger selling participation and further deterioration in the price structure. The index is trading below all its key moving averages on the chart, while the shorter-term averages have rolled over, confirming downside momentum remains dominant. Recent price action has also broken below the prevailing consolidation structure, with no visible reversal pattern yet. Momentum indicators reinforce this bearish setup: the RSI has fallen to 29.04, below its signal average of 38.29 and into oversold territory, reflecting intense selling momentum while raising the possibility of a short-term technical rebound. The MACD remains firmly negative, with the MACD line near -613.47 below the signal line around -410.72 and a negative histogram of approximately -202.75. Nifty Bank breached the key support level of 55,000 and closed below 54,500, reinforcing the prevailing weakness in the short-term technical structure. On the downside, the next important support zone is placed around 53,000–52,800, where buying interest could emerge. Conversely, any near-term recovery is likely to face initial resistance around 56,000, which has now become an important technical hurdle following the recent breakdown. 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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