Stock market recap: India’s benchmark equity indices, the Sensex and Nifty 50, edged higher on Thursday, 14 August, tracking positive global cues. Gains, however, were capped as investors stayed cautious ahead of the upcoming Russia–US talks on the Ukraine conflict, keeping sentiment muted in the holiday-shortened week.

On 14 August, the Sensex closed at 80,597.66, up 57.75 points or 0.07%, while the Nifty 50 settled at 24,631.30, up 11.95 points or 0.05%, holding above the 24,600 mark.

Amid this, here are two stock recommendations by MarketSmith India for 18 August:Buy: HDFC Life Insurance Co. Ltd(current price: ₹ 788.75)Why it is recommended: Strong premium growth and profitability, industry-leading distribution network, and superior operational efficiency and returnsKey metrics: P/E: 45.64, 52-week high: ₹ 7,605.00, volume: ₹177.35 croreTechnical analysis: Reclaimed its 21-DMARisk factors: Intense industry competition and regulatory sensitivity, claims and settlement challenges, valuation concerns, and growth expectationsBuy at: ₹788.75Target price: ₹880 in two to three monthsStop loss: ₹745

Buy: Eicher Motors Ltd (current price: ₹5,760)Why it’s recommended: Dominant position in premium motorcycles and balanced growth via commercial vehicles (VECV)Key metrics: P/E: 37.71; 52-week high: ₹5,906; volume: ₹ 132.26 croreTechnical analysis: downward sloping trendline breakoutRisk factors: High valuation reflecting elevated expectations, dependence on premium motorcycle demandBuy at: ₹5,700–5,800Target price: ₹6,100 in two to three monthsStop loss: ₹ 5,600

Nifty 50 recap | 14 August

The Indian equity market snapped a six-week losing streak on 14 August, with the Sensex rising 0.07% and the Nifty 50 settling at 24,631.

Market breadth was mixed, reflected in the Nifty’s advance-decline ratio of 24:26. For the week, all sectoral indices ended in the green except Nifty FMCG. Nifty Pharma outperformed with a 3% gain, followed by Nifty Auto and Nifty PSU Bank, each up 2%. On Thursday, Nifty IT led sectoral advances after Infosys announced plans to acquire a majority stake in an Australian IT firm, while Nifty Metal and Nifty FMCG closed lower. Broader markets underperformed, with the Nifty Midcap and Smallcap indices ending in the red.

Investor sentiment stayed cautious amid geopolitical tensions ahead of U.S.–Russia talks on the Ukraine conflict and persistent global trade concerns. Hopes of a potential U.S. Fed rate cut also influenced positioning.

Technically, the Nifty held above its 100-DMA and the key 24,600 level, suggesting short-term stability. The RSI has rebounded from oversold territory to 44–45 but remains capped by a downward-sloping trendline, limiting upside momentum. The MACD stays in bearish mode—below both its signal line and the zero axis, indicating an underlying negative bias.

O’Neil’s market direction methodology downgraded the status to “Uptrend Under Pressure” after the Nifty breached its 50-DMA and the distribution day count rose to six.

The index closed the week flat ahead of key weekend events. From here, a sustained move above 24,600 would be constructive, potentially opening the path toward the 24,800–24,850 resistance zone. On the downside, 24,330 remains crucial support; a decisive breach could reintroduce selling pressure, with further supports at 24,200 and 24,000. Price action around these levels will shape the index’s next move.

Nifty Bank performance | 14 August

Nifty Bank opened weak on Thursday but quickly attracted buying interest from lower levels, staging an intraday recovery that formed a bullish candle on the daily chart with a higher-high and higher-low structure. Crucially, the index closed above its 100-DMA, reinforcing near-term technical strength.

On the weekly chart, it posted a bullish candle after two straight weeks of declines—a reversal pattern that suggests sentiment may be turning in favour of the bulls. The ability to defend key support levels further bolsters this constructive setup.

Momentum-wise, the RSI edged up to 42, while the MACD continued to show a negative crossover, signalling that broader market momentum remains weak. This combination points to a short-term bearish bias, warranting a cautious trading stance. As per O’Neil’s methodology, Bank Nifty remains in an “Uptrend Under Pressure,” underscoring a fragile market environment where selective participation and disciplined risk management are key.

The index ended in positive territory, holding above its 100-DMA for a fourth consecutive session. Sustained buying from these levels could pave the way for a move toward the immediate resistance at 56,400. A decisive breakout above this level may unleash stronger bullish momentum. On the downside, 55,100 remains the critical support—any breach here could trigger sharper declines and heightened volatility.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O’Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543).

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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.