Two stock recommendations by MarketSmith India:Buy: Supriya Lifescience Ltd. (current price: ₹743)
Why it’s recommended: Strong regulatory credentials and certifications, backward integration and operational efficiencies, credit rating and financial strength, good margins and profitability trends, management credibility, and transparency.
Key metrics: P/E: 32.82 | 52-week high: ₹842 | Volume: ₹38.60 crore
Technical analysis: Reclaimed its 100-DMA on above-average volume
Risk factors: Margin pressure/product and geographic mix risks, regulatory risks, dependency on export and global demand trends, competition risk, raw material, and input cost volatility.
Buy: ₹735-750
Target price: ₹860 in two to three months
Stop loss: ₹680
Buy: Unicommerce Esolutions Ltd (current price: ₹149.50)
Why it’s recommended: Strong revenue and margin expansion, acquisition, and platform synergies
Key metrics: P/E: 81.32 | 52-week high: ₹264 | Volume: ₹24.51 crore
Technical analysis: Tight range breakout
Risk factors: High operating expense growth and platform investment burden
Buy at: ₹1,610-1,640
Target price: ₹1,940 in two to three months
Stop loss: ₹1,490
How the Nifty 50 performed on 22 September
On Monday, the Indian equity market experienced a broad-based sell-off, ending a recent bullish run, with benchmark indices closing sharply lower. The decline was largely fueled by a significant drop in the IT sector following a new US policy on H-1B visa fees.
The Nifty 50 concluded the session at 25,202.40, down 124.65 points, or 0.49%, while BSE Sensex tumbled 466 points, or 0.56%, to settle at 82,159.98. Market breadth was negative, with the advance-decline ratio indicating widespread selling pressure as a majority of stocks ended in the red. The IT and Pharmaceutical sectors were the primary laggards as both are sensitive to US policy changes. Conversely, a handful of sectors showed resilience, with PSU Banks, power, and realty stocks outperforming. The Adani Group was a notable exception, with several of its companies hitting the upper circuit, continuing their rally from a favourable regulatory outcome.
The index encountered resistance around 25,450 and subsequently saw profit booking, indicating some consolidation after the recent uptrend. Momentum signals suggest a healthy, though moderate setup—the RSI cooled off from overbought territory and is now placed at 58, yet continues to hold above the downward-sloping trendline breakout, reinforcing underlying strength. Meanwhile, the MACD remains in a positive territory, reflecting that the broader trend bias is still constructive despite near-term volatility. Overall, the technical structure suggests that while some pause or pullback cannot be ruled out, the index retains a favourable outlook as long as it sustains above immediate support levels.
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 extended its losing streak and settled marginally above 25,200, reflecting continued consolidation at higher levels. As long as the index holds above 25,150, it is likely to trade within a range of 25,150-25,350. However, a decisive close below 25,150 could invite further downside pressure, with the index potentially sliding toward 25,000. Monitoring price action around these support levels will be critical in determining the next directional move.
How did Nifty Bank perform yesterday?
The Nifty Bank opened on a weak note and traded sideways before gaining buying momentum, which briefly lifted the index into positive territory. However, it failed to sustain these gains and succumbed to renewed selling pressure post-noon, erasing intraday advances.
The index has consequently formed a bearish candle on the daily chart with a lower-high and lower-low price structure, signalling caution among participants. Notably, it closed near its 50-DMA, highlighting the importance of this zone as a short-term pivot. Such price action reflects hesitation at higher levels, keeping traders on guard for directional clarity.
During the session, the Nifty Bank opened at 55,429.30, touched an intraday high of 55,666.35, slipped to a low of 55,215.60, and eventually settled at 55,284.75. The momentum indicator RSI eased marginally to 54, pointing to waning strength, while the MACD continued to hover with a positive crossover above the central line, offering some underlying resilience.
Under O’Neil’s market direction framework, the index remains categorized as “Uptrend Under Pressure”, which implies that while the broader trend stays constructive, risks of pullbacks cannot be ignored. This mixed setup calls for cautious optimism supported by disciplined risk management. Overall, the technical picture suggests a balanced but fragile outlook.
At the current juncture, the Nifty Bank faces immediate resistance in 55,800–55,900, and a decisive breakout above this band could strengthen the medium-term outlook and unleash fresh momentum. On the downside, support lies in 54,900-54,800, and a breach of this level may intensify selling pressure and open the gates for deeper correction. Traders should closely monitor price action around these crucial levels to gauge directional strength. A sustained move beyond resistance would attract momentum-driven participation, while a fall below support could shift sentiment decisively bearish. Thus, key levels remain critical in shaping the near-term trajectory.
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.