The index reclaimed 25,200, advancing 169.90 points to close at 25,239.10, while the BSE Sensex surged 594.95 points to settle at 82,380.69. The rally was broad-based, as reflected in a positive advance-decline ratio, indicating that market gains were not confined to a few heavyweight stocks. Sectoral performance was robust, led by strong buying in auto and energy sectors.
Two stock recommendations by MarketSmith India:
Buy: Global Health Ltd (current price: ₹1,360)
Why it’s recommended: Strong demand for healthcare services, brand, promoter and reputation, asset and infrastructure expansion, and improving financial risk metrics.
Key metrics: P/E: 64.26 | 52-week high: ₹1,456.50 | Volume: ₹54.88 crore
Technical analysis: Reclaimed its 50-DMA on above-average volume
Risk factors: High capital intensity and fixed costs, occcupancy/utilisation risk, regulatory risk and pricing pressures, risk of underutilized capacity.
Buy: ₹ 1,350-1,370
Target price: ₹ 1,560 in two to three months
Stop loss: ₹1,260
Buy: Aadhar Housing Finance Ltd (current price: ₹538)
Why it’s recommended: Strong AUM expansion, capital strength, affordable housing and ticket-size mix favorability
Key metrics: P/E: 23.66 | 52-week high: ₹545 | Volume: ₹178.33 crore
Technical analysis: Horizontal trendline breakout
Risk factors: Competition and margin pressure, exposure to borrowers with lower income
Buy at: ₹525-540
Target price: ₹620 in two to three months
Stop loss: ₹499
How the Nifty 50 performed yesterday
Indian equities extended gains on 16 September, the Nifty 50 climbing 169.9 points, or 0.68%, to close at 25,239.10, while the Sensex advanced nearly 600 points, supported by firm global cues and sectoral strength. Buying interest was broad-based, with 15 of 16 major sectoral indices ending higher, led by autos and energy on the back of GST relief expectations, resilient demand, and trade optimism. Automakers such as M&M and Ashok Leyland outperformed, while Energy counters saw sustained traction.
Market sentiment was further buoyed by growing bets on a potential US Fed rate cut and positive progress in the US-India trade discussions, which lifted risk appetite. The advance-decline ratio remained comfortably positive, reflecting strong participation across the broader market.
The index confirmed a breakout above the upper trendline of its symmetrical triangle pattern near 25,000, reinforcing the prevailing bullish structure. The index has also decisively surpassed key short-term resistance levels, with both the 50- and 100-DMA now transitioning into strong support zones.
Momentum indicators further validate this constructive outlook. The RSI moved above 64 following its own trendline breakout, signalling strengthening market breadth, while the MACD has registered a bullish crossover, underscoring the continuation of upward momentum. Together, these technical signals highlight a favourable setup for the index, with the bias remaining firmly positive in the near term.
According to O’Neil’s methodology of market direction, the market status has been downgraded to an “Uptrend Under Pressure” as the Nifty breached its “50-DMA” and the “distribution day count” is at one.
The index ended on a positive note, closing decisively above 25,200, reinforcing its short-term bullish bias. The next key resistance lies at 25,350, and a sustained move above this level could open the path toward 25,550-25,650. On the downside, immediate support is seen in 24,900–24,800, with a breakdown below this band likely to trigger selling pressure and drag the index toward 24,600-24,500. Price action around these levels will be crucial in determining the next directional move for the index.
How did the Nifty Bank perform yesterday?
On Tuesday, the Nifty Bank opened on a flat note and gradually attracted sustained buying interest, which lifted the index into positive territory by the close. The price action for the day resulted in the formation of a bullish candle with a higher-high higher-low structure, reinforcing short-term strength. Importantly, the index continues to trade well above its 21-DMA, underlining near-term trend support. During the session, the Nifty Bank opened at 54,778.40, registered an intraday high of 55,185.45, touched a low of 54,777.75, and eventually settled at 55,147.60.
Momentum indicators are gradually improving, confirming the price action. The RSI has inched higher and is currently placed at 55, suggesting a modest yet positive shift in underlying momentum. Additionally, the MACD has witnessed a positive crossover, although it remains below the central line, indicating that the recovery is still in its early stages. As per O’Neil’s market direction framework, the index remains classified as “Uptrend Under Pressure”, emphasizing the need for caution despite constructive signals. Such mixed cues highlight the importance of monitoring follow-through price action in the coming sessions.
From a broader perspective, the Nifty Bank is demonstrating resilience by sustaining levels above its 21-DMA, which now acts as an immediate support zone. If the ongoing buying bias continues, the index could attempt to reclaim both the 50- and 100-DMA, currently clustered in 55,550-55,660. A successful move beyond this zone would strengthen the medium-term outlook and attract further momentum-based participation.
Conversely, failure to hold above the 21-DMA may invite near-term profit booking. Overall, the index appears positioned for a potential breakout provided sectoral participation remains supportive.
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.
