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Stock market recap: Indian equity benchmarks ended higher on Friday, though gains were trimmed from the day's highs as the session progressed. Nifty 50 rose 24.25 points, or 0.10%, to close at 23,897.70, while Sensex gained a firmer 362.57 points, or 0.48%, to settle at 76,515.43. Metals were the standout sector, jumping 1.42% ahead of key U.S. payrolls data, led by strength in Tata Steel, APL Apollo, and Hindustan Zinc. The rupee touched a two-month high after FCNR(B) deposits crossed $127 billion, easing concerns over currency pressure. At the same time, global bond yields cooled, and Brent crude held near $95–96 per barrel amid lingering U.S.-Iran uncertainty. Reliance Industries, SBI Life, HDFC Life, Trent, and Wipro were among the notable gainers. Meanwhile, IT, Auto, Capital Goods, and Healthcare ended in the red, capping the broader upside. Nifty Bank closed nearly flat. Market breadth stayed constructive, with 2,017 stocks advancing, 1,519 declining, and 112 remaining unchanged. Investors will now watch global cues from the U.S. jobs report and crude oil trends for further direction, with elevated oil prices continuing to pose a risk to the domestic growth-inflation outlook. Two stock recommendations by MarketSmith India: Buy: Acme Solar Holdings Ltd (current price: ₹418) - Why it’s recommended: Aggressive Capacity Expansion & Strong Pipeline: The company is rapidly scaling its operational asset base from ~3 GW, with a massive under-construction pipeline targeting over 7-8 GW of total capacity by 2028. - Key metrics: P/E: 47.16, 52-week high: ₹430, volume: ₹62.04 crore - Technical analysis: flat base breakout - Risk factors: High Balance Sheet Leverage: The company operates with a high debt-to-equity ratio (exceeding 3.8x), creating significant vulnerability to interest rate fluctuations and adding financial pressure despite recent debt reduction from IPO proceeds. - Buy: ₹414–420 - Target price: ₹500 in two to three months - Stop loss: ₹392 Buy: Balaji Amines Limited (current price: ₹2,525) - Why it’s recommended: Massive Capex & Import Substitution: A pipeline of ₹750–1,000 crore capital expenditure to introduce specialty high-value chemical products (like Dimethyl Ether and Cyanide chemistry) targets highly profitable local import substitution. Favorable Feedstock Spreads & Demand Recovery: Softening input prices for critical raw materials (methanol/ammonia) coupled with demand revival from core pharmaceutical and agrochemical sectors drives operating margin expansion. - Key metrics: P/E: 37.17, 52-week high: ₹2,550.00, volume: ₹153.28 crore - Technical analysis: Consolidation base breakout - Risk factors: Geopolitical Supply Chain Volatility: Highly vulnerable to logistical disruptions and supply shortages of essential raw materials like ammonia, which have previously triggered Force Majeure contract pauses. Chinese Dumping & Global Cyclicality: Severe price undercutting from aggressive overproduction by Chinese chemical manufacturers exposes the company to periodic amine margin crashes. - Buy at: ₹2,500–2,538 - Target price: ₹3,000 in two to three months - Stop loss: ₹2,290 How the Nifty 50 performed on Friday Indian equities ended a volatile session largely flat on 4 September, with Nifty 50 closing at 23,897.70, up 24.25 points or 0.10%, after touching an intraday high of 24,005.75 and a low of 23,895.85. The index briefly reclaimed 24,000 but surrendered most gains toward the close, indicating resistance around 24,000–24,050, while 23,850–23,900 remains the immediate support zone. Positive global cues and easing expectations of a near-term U.S. Federal Reserve rate hike supported sentiment following four consecutive sessions of declines. On the sectoral front, metals (+1.07%) led the gains, followed by financial services (+0.47%), media (+0.30%) and private banks (+0.28%). On the other hand, realty (-0.90%), healthcare (-0.87%), and pharma (-0.68%) underperformed. Importantly, broader-market participation remained constructive despite the subdued headline index: 2,017 stocks advancing, 1,519 stocks declining, and 112 remaining unchanged, translating into an advance-decline ratio of roughly 1.33:1. Nifty 50’s technical structure has weakened, with the index closing below 2,900. Price action indicates a loss of near-term momentum, as the index has slipped below its rising trendline and is trading beneath the key short- and medium-term moving averages visible on the daily chart. The recent sequence of lower highs from August peak further suggests sellers are gaining control, while the latest decline has challenged the broader recovery structure that had been developing since April. Momentum indicators reinforce this cautious setup. The RSI has declined to 38, below its signal average of 45.27, reflecting weakening momentum. Importantly, it is approaching oversold territory but has not yet reached levels that would independently indicate exhaustion of the decline. The MACD remains in negative territory, with the MACD line below the signal line and the histogram negative, confirming continued bearish momentum. The Nifty 50 has breached its 100-DMA and the rising trendline, indicating a deterioration in the near-term technical structure. On the downside, a decisive break below 23,800–23,750 could reinforce bearish momentum and extend the corrective move toward 23,650–23,500. Conversely, any recovery is likely to encounter initial resistance around the 100-DMA and 24,000, making this a key hurdle for the index. A sustained close above 24,000 would signal improving short-term momentum and could trigger a broader recovery toward 24,400. How Nifty Bank performed Bank Nifty ended nearly flat on Friday, giving back most of its intraday gains as the broader banking pack lost steam into the close. The index slipped 10.95 points, or 0.02%, to settle at 57,369.65, after reaching gains of more than 0.7% earlier in the session. HDFC Bank, Axis Bank, Kotak Mahindra Bank, and Punjab National Bank led the advance for much of the day, each up 0.6–1.2% at one point. At the same time, State Bank of India, IndusInd Bank, and Federal Bank remained laggards throughout the session and dragged on the index into the close. RBL Bank was a notable outperformer, surging around 2% on unusually heavy volumes even after receiving a Rs. 164 crore GST demand notice tied to its bullion business. The banking pack's inability to hold gains came even as the rupee touched a two-month high on strong FCNR(B)-linked dollar inflows, which had initially lifted sentiment toward rate-sensitive financials. Overall, the broader market fared better than banks, with the Nifty 50 and Sensex both closing higher, suggesting the pullback in financials was largely sector-specific profit booking rather than a broader risk-off move. Recent price action indicates a phase of sideways consolidation following the strong recovery from the March lows. The index is trading in a tight range around its short- and medium-term moving averages, while remaining above the longer-term moving average, suggesting that the broader recovery structure remains intact but near-term directional momentum has weakened. The recent candles show repeated intraday swings with limited follow-through, reflecting a balance between buyers and sellers and the absence of a decisive trendline breakout. RSI stands at 48.22, below its signal average near 50, placing momentum in neutral territory with a mild negative bias; importantly, it remains well away from both overbought and oversold zones. MACD is also displaying a subdued bearish configuration, with the MACD line below the signal line and the histogram marginally negative, pointing to weak momentum rather than aggressive selling pressure. Immediate support is placed at 57,300–57,150, followed by 56,900 and the 100-DMA near 56,512. Resistance is clustered at 57,575–57,750, where the 21-, 50-DMA and today’s high converge. A decisive breakout could open the way toward 58,000–58,300. The near-term bias remains sideways with a mild bearish undertone until the index sustains above 57,750. Surplus banking-system liquidity may ease funding costs and support margins, although the RBI’s unchanged 5.25% repo rate and inflation concern limit policy support. A close below 57,150 would weaken the structure and increase the probability of a decline toward 56,500. 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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