The Sensex rose 124 points, or 0.15%, to 81,548.73, while the Nifty 50 added 32 points, or 0.13%, to end at 25,005.50. The BSE Midcap index gained 0.14%, while the BSE Smallcap index finished flat.
Two stock recommendations by MarketSmith India for 12 September
Buy: Allied Blenders and Distillers Ltd (current price: ₹ 529)
- Why it’s recommended: Premiumization and portfolio diversification, backward integration and higher control over inputs, margin improvement expected, strong recent financial performance, and brand strength and established distribution
- Key metrics: P/E: 59.37, 52-week high: ₹539.80, volume: ₹49.29 crore
- Technical analysis: Reclaimed its 21-DMA on above-average volume
- Risk factors: Regulatory and taxation risks, state specific dependencies, heavy dependence on key brands / whisky segment, legal / trademark risks
- Buy at: ₹ 526–534
- Target price: ₹ 598 in two to three months
- Stop loss: ₹ 495
Buy: Premier Energies Ltd (current price: ₹1,067)
- Why it’s recommended: Strong capacity & integration backbone, favourable policy, and market tailwinds
- Key metrics: P/E: 44.88; 52-week high: ₹1,388; volume: ₹ 270.22 crore
- Technical analysis: downward sloping trendline breakout
- Risk factors: Raw material / input cost volatility & supply chain dependence, capital intensity, and execution risk
- Buy at: ₹1,050–1,070
- Target price: ₹1,230 in two to three months
- Stop loss: ₹ 990
How the Nifty 50 performed on 11 September
Indian equities ended marginally higher on 11 September, with Nifty 50 closing above 25,000 for the first time, settling at 25,005.50, up 32.40 points (+0.13%). The index traded in a narrow range of 24,940–25,037 through the session, reflecting subdued investor sentiment ahead of key US inflation data. Market breadth was slightly positive, with 1,930 stocks advancing versus 1,718 declines on the BSE, indicating a mildly constructive undertone. On the sectoral front, Nifty IT and FMCG led the gains. Meanwhile, Metals and Energy stocks came under pressure. Among notable movers, HUL and TCS supported the index, while weakness in Reliance and Hindalco capped broader upside.
The index extended its gains, breaking above key short-term resistance levels, including the 50- and 100-day SMAs. It is now testing the upper trendline of a symmetrical triangle near 25,050, which represents a crucial breakout level. Momentum indicators support the bullish bias: the RSI moved above 58 following a trendline breakout, while the MACD has turned positive with a bullish crossover. However, volumes remain subdued, indicating that stronger participation will be essential to confirm the breakout and sustain the upward momentum.
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 reclaimed its 50-DMA and managed to close above the psychological 25,000 level, reinforcing a positive near-term bias. On the upside, the index now faces a critical resistance zone at 25,150–25,300. A decisive close above this band would be required to unlock further upside potential toward 25,500–25,800 in the near term. On the downside, immediate support is placed in 24,800–24,750. A breakdown below this zone could reintroduce selling pressure and drag the index lower toward 24,600–24,500.
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 three.
A decisive move above this threshold is necessary to unlock further upside potential toward 25,000. On the downside, immediate support is placed around 24,350-24,300, and a breach below this band could accelerate declines toward the 200-DMA at 24,070. The overall structure suggests that the index remains range-bound, with critical levels on both sides likely to dictate the near-term trend.
How did Nifty Bank perform?
On Thursday, Bank Nifty opened on a subdued note and remained volatile throughout the session, but ultimately closed in positive territory. On the daily chart, the index formed a bullish candle and retested its 21-DMA, though it settled marginally below the level. Among its constituents, Axis Bank, PNB, Canara Bank, and SBI emerged as the top gainers. The index opened at 54,413.05, touched an intraday high of 54,757.45, a low of 54,402.40, and finally closed at 54,669.60. The price action reflects underlying resilience, and market participants will now watch for follow-through momentum in the coming sessions.
Momentum indicators reflect a cautious outlook for Bank Nifty. The RSI edged higher today to 47, while the MACD has signaled a positive crossover but remains below the central line, underscoring subdued momentum. According to O’Neil’s methodology of market direction, Bank Nifty is classified as an ‘Uptrend Under Pressure.’ In this environment, investors are advised to focus on fundamentally strong companies supported by constructive technical setups, exercise strict risk management, and deploy capital selectively into high-conviction opportunities.
Bank Nifty is currently testing resistance around 54,750, with a stronger supply zone placed near 55,300. A sustained close above this band would be critical to validating the ongoing rebound and could set the stage for a broader uptrend, with a move beyond 55,000 likely to strengthen bullish sentiment further. On the downside, immediate support rests in 53,500–53,600. A decisive breach of this range may trigger renewed selling pressure, potentially dragging the index lower nearly 3% and increasing the likelihood of a retest of the 200-DMA.
The index continues to face stiff resistance around 54,000-54,400, with a sustained move above this band required to confirm a meaningful recovery. A breakout beyond 55,000 would further strengthen bullish momentum and open the door for an extended upward move.
On the downside, the index is hovering close to its crucial support at 53,500-53,600, and a breach below this zone could trigger a correction of nearly 2%, potentially leading to a retest of the 200-DMA.
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.
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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.
