Market Recap: Indices End Flat, Second Weekly Loss

Indian benchmark indices ended Friday, August 21, largely unchanged, as investors weighed high crude oil prices, stalled US-Iran negotiations, and rising US bond yields. The BSE Sensex added 3.11 points to close at 77,540.83, while the NSE Nifty 50 gained 20 points, or 0.08 per cent, to settle at 24,252.00, as reported by both Business Standard and Livemint.

Broader market indices showed mixed performance. According to Business Standard, the Nifty Midcap 100 rose 0.10 per cent and the Nifty Smallcap 100 gained 0.69 per cent. Livemint reported that the Nifty Midcap 150 rose 0.08 per cent and the Nifty Smallcap 250 advanced 0.41 per cent. Sectoral indices on the NSE closed mixed, with Nifty Metal and Nifty Private Bank among the top gainers, Business Standard noted.

For the week, the 30-share Sensex declined 0.60 per cent, while the Nifty 50 fell 0.50 per cent, marking the second straight week of losses, according to Livemint.

Bank Nifty closed at 57,761.95, up 266.05 points (+0.46 per cent), while India VIX rose 4.09 per cent to 11.20, as per Livemint.

Analyst Views: Nifty and Bank Nifty Outlook

Sumeet Bagadia, Executive Director at Choice Broking, shared technical insights on the indices. On the derivatives front, he said, "PCR at 1.08 indicates a relatively balanced-to-positive setup. The highest Put OI concentration around 24,200–24,000 provides a cushion on declines, while significant Call OI between 24,300–24,500 is likely to act as an overhead hurdle."

He highlighted that the 24,350–24,400 zone coincides with the 50-day moving average area. "A sustained move above this band could strengthen the recovery towards 24,500, whereas failure to hold 24,000 may bring renewed selling pressure," he added. "Overall, the index remains range-bound, with a cautious positive bias above the key support zone."

On Bank Nifty, Bagadia noted: "On the downside, 57,250–57,430 remains the immediate support area, and holding this zone would keep the recent higher-low structure intact." He identified 57,880–58,000 as the key resistance band, where "sustained acceptance would be required for a fresh upside breakout." Cautions about the Bank Nifty PCR, he said, "PCR at 0.87 suggests relatively higher Call-side positioning and warrants caution near resistance." A decisive move above 58,000 could open the way for further gains, while rejection from this zone may lead to continued consolidation, he added.

Stock Recommendations by Sumeet Bagadia

Sumeet Bagadia recommended buying five stocks, according to Livemint. All recommendations are for the cash segment, with detailed technical reasoning.

  • Hindustan Zinc: Buy at ₹595, with a target of ₹636 and a stop loss of ₹574. The stock is trading around 595, above its 20-day EMA at 567.03, and its daily RSI has crossed upward into positive territory at 62.68, indicating renewed buying momentum.
  • Netweb Technologies India: Buy at ₹5,601, with a target of ₹6,000 and a stop loss of ₹5,400. The stock is trading at 5,601, with the daily RSI trending upward in positive territory at 68.39, reflecting a strong upward trend.
  • ICICI Prudential Life Insurance: Buy at ₹515, with a target of ₹550 and a stop loss of ₹497. The stock is trading at 515, and its RSI (14) has ticked upward to 56.98, suggesting a bottom reversal pattern.
  • Prime Focus Limited: Buy at ₹296, with a target of ₹317 and a stop loss of ₹285. The stock is trading at 296, with the daily RSI crossing upward into positive territory at 58.87, indicating healthy buying momentum.
  • Power Grid Corporation of India: Buy at ₹272.4, with a target of ₹292 and a stop loss of ₹262. The stock is trading around 272.4, and its RSI (14) has rebounded sharply from oversold territory to 45.87, indicating a bullish recovery candle.

Stock Recommendations by Sachin Gupta

Sachin Gupta, VP – Research at Choice Broking, recommended three stocks, as reported by Business Standard. These are based on positive technical setups.

  • Prestige Estates: Buy at ₹1,630, with a stop loss at ₹1,580 and a target of ₹1,700. The stock closed at ₹1,631, above its 50-day EMA at ₹1,581.6 and 100-day EMA at ₹1,537.2, keeping the medium-term structure positive. The RSI improved to 54.36 and moved above its signal line, indicating strengthening momentum. Gupta noted the stock is showing signs of renewed bullish momentum after breaking above the upper trendline of its recent falling consolidation pattern.
  • PB Fintech (Policy Bazaar): Buy at ₹1,790, with a stop loss at ₹1,755 and targets of ₹1,850/₹1,870. The stock is trading around ₹1,795, above its key moving averages and the Ichimoku Cloud, indicating strong medium-term momentum. However, it is approaching a critical resistance level, with RSI around 70, suggesting the stock may be overbought in the near term.
  • Carborundum Universal: Buy above ₹1,180, with a stop loss at ₹1,120 and a target of ₹1,280. The stock rebounded from the ₹1,081 level and gained nearly 3 per cent, closing around ₹1,170. A Bullish Engulfing pattern formed on the daily chart in the previous session, and the RSI improved to 59.10, indicating constructive momentum.

Technical Indicators in Focus

The recommendations are largely driven by technical analysis, including moving averages (EMA, DMA), RSI, and chart patterns. For the Nifty, the index remains below its 50-day moving average near 24,376, with RSI at 49.09, below its average of 54.00, indicating neutral momentum. Bank Nifty is trading above its 20-DMA near 57,530 and 50-DMA around 57,223, with RSI improved to 53.72, above its average of 51.79.

Traders are advised to maintain strict stop losses, as highlighted by the analysts, given the broader market's range-bound nature and the presence of overhead resistance levels.