Despite a mixed performance in Asian markets and a retreat in European indices from record highs, the Indian stock market extended its winning streak for the 13th consecutive session. The Nifty 50 index rose by 37 points, closing at 25,273, while the BSE Sensex increased by 194 points to end at 82,559. The Bank Nifty index gained 71 points, reaching 51,422. Cash market volumes on the NSE were subdued at ₹1.11 lakh crore, and broad market indices ended slightly negative, with the advance-decline ratio at 0.98:1.
Trade Setup for Tuesday, September 3
Nifty 50 Outlook
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, notes that the short-term trend for the Nifty remains intact. “Although the Nifty is approaching resistance around 25,350 (1.382% Fibonacci extension), there is no significant reversal pattern evident at these highs. A decisive breakout above 25,400 could lead to an upside target of 25,800. Immediate support is at 25,100.”
Bank Nifty Outlook
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C Mehta, highlights that the Bank Nifty started strong but faced profit-taking. “Despite forming a red candle on the daily chart, the index remains above key trendline support and the 21-day exponential moving average (DEMA) near 51,000. A ‘buy on dips’ strategy is recommended as long as the index stays above 51,000. Upside potential could extend to 51,800-52,000.”
Global Market Trends
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, points out that while key indices are setting records due to selective buying, some sectoral indices have dipped, suggesting that bullish momentum might be waning. Investors are awaiting the key US jobs data set to be released on Friday, which will influence interest rate decisions by the US Federal Reserve this month.
Stocks to Buy or Sell Today
Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommend the following stocks:
Thangamayil Jewellery: Buy at ₹2,227.15, Target ₹2,345, Stop Loss ₹2,145.
Rationale: The stock is showing strong bullish momentum, trading at an all-time high of ₹2,320.95. A breakout above the resistance at ₹2,150 indicates potential for further gains.
Patanjali Foods: Buy at ₹1,969.45, Target ₹2,070, Stop Loss ₹1,899.
Rationale: The stock’s daily chart shows a favorable trend with higher highs and lows. A recent breakout above the neckline suggests potential for continued upward movement.
Ganesh Dongre’s Recommendations:
Balkrishna Industries: Buy at ₹2,895, Target ₹2,995, Stop Loss ₹2,850.
Rationale: The stock has found support at ₹2,850 and shows signs of a price-action reversal. Traders may consider buying with an eye on the next resistance level at ₹2,995.
ONGC: Buy at ₹326, Target ₹345, Stop Loss ₹320.
Rationale: A bullish reversal pattern suggests potential for the stock to reach ₹345. The current support level is at ₹320, making it a good buying opportunity.
Wipro: Buy at ₹532, Target ₹555, Stop Loss ₹508.
Rationale: The stock has recently broken out at ₹532 with increasing buying momentum as indicated by the RSI. A stop loss at ₹508 is recommended, with a target price of ₹555 in the near term.
Investors should consider these insights and adjust their strategies according to their risk tolerance and investment goals.
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