The Nifty 50 rose 135.45 points, or 0.55%, to close at 24,715.05, while the BSE Sensex climbed 409.83 points, or 0.51%, finishing at 80,567.71. The Bank Nifty gained 406.55 points, or 0.76%, to settle at 54,067.55, reflecting renewed buying interest in financial counters.
3 stock to buy—recommended by Ankush Bajaj for 4 SeptemberTata Steel Ltd (Current price: ₹167.85)
Why Tata Steel is recommended: Tata Steel is showing extremely strong technical momentum as it trades near recent highs. The 14-day RSI has surged into overbought territory (82), highlighting strong buying interest. The MACD is in positive territory and generating bullish signals, while ADX has climbed above 70, indicating a dominating trend. These readings are backed by broad-based buying across moving averages and strong volume—in line with the global steel revival.
Key metrics
Pattern: Rising momentum with breakout stability
RSI: 82 (overbought, reflecting strong bullish bias)
MACD: Positive, confirming trend continuation
ADX: 72, signaling a highly trending stock
Technical view: Sustained strength above support zones projects a move toward ₹173
Risk factors: Steel demand and margins are vulnerable to global cycles and coking coal price volatility. Export and trade policy shifts may impact profitability.
Buy at: ₹167.85
Target price: ₹173
Stop loss: ₹165.50
Steel Authority of India Ltd (Current price: ₹129.65)
Why SAIL is recommended: Steel Authority of India has begun to exhibit renewed strength after recent weakness. The 14-day RSI is approaching the 80 level (79.7), indicating growing bullish momentum. The MACD has turned positive, signaling a potential trend change. Meanwhile, ADX is elevated (70), showcasing a resurgent trend with strong conviction. The price is now stabilizing after reversing from key support, which strengthens the chance of a rebound.
Key metrics
Pattern: Recovery from recent consolidation base
RSI: 79.7 (indicating rising bullish energy)
MACD: Positive, showing early trend reversal
ADX: 70, denoting a powerful emerging trend
Technical view: A break above the consolidation zone could lift the stock toward ₹134
Risk factors: Vulnerable to global steel pricing cycles and cost escalation. As a PSU, it faces influence from regulatory policies and incremental capital expenditure.
Buy at: ₹129.65
Target price: ₹134
Stop loss: ₹127.30
Jindal Steel and Power Ltd (Current price: ₹1,028.35)
Why Jindal Steel and Power is recommended: Jindal Steel is establishing a strong upward trend, supported by overbought RSI (77.6), confirming sustained buying pressure. MACD is firmly positive, reinforcing momentum. The ADX is also elevated (65), indicating a powerful uptrend. This technical strength is underpinned by improved global steel prices and solid end-demand.
Key metrics
Pattern: Strength confirmation with strong trend dynamics
RSI: 77.6 (overbought, but trending higher)
MACD: Positive, affirming bullish setup
ADX: 65, signaling robust trend strength
Technical view: Staying above key support levels suggests further rise toward ₹1,063
Risk factors: Highly cyclical, exposed to input cost fluctuations and capex cycles. Promotes sensitivity to global demand shifts and export policies.
Buy at: ₹1,028.35
Target price: ₹1,063
Stop loss: ₹1,011
Market insight
Sectoral performance tilted clearly to the positive side. Cyclicals and industrials outshined, with the metal index soaring 3.11%, the pharma index rising 1.10%, and the healthcare sector up 1.08%. Notably, no major sector faced bearish pressure, reinforcing broad-based strength.
In stock-specific action, Tata Steel emerged as the standout performer, rallying 5.97%, followed by Hindalco, which advanced 3.05%, and JSW Steel, climbing 2.70% on robust demand. However, a few heavyweights tempered gains—Infosys slipped 1.31%, HDFC Life Insurance declined 0.80%, and NTPC eased 0.61%.
Nifty technical analysis—daily and hourly
The Nifty 50 closed the session of 3 September on a firm note at 24,715.05, gaining 135.45 points or 0.55%. The index staged a healthy recovery after testing key levels, rebounding strongly from the recent support zone near 24,400.
As highlighted earlier, the crucial resistance remains at 24,850, and once the index manages a decisive close above the 25,000 mark, a sharp short-covering rally could unfold. On the downside, the 24,400 zone continues to be the key closing-based support, and as long as this holds, the short-term bias remains constructive.
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From a technical perspective, the index is now positioned close to its key short-term moving averages. The 20-DMA at 24,694 and the 40-DEMA at 24,796 remain immediate resistance hurdles, which the Nifty is attempting to approach.
On the daily chart, RSI has improved to 48, moving higher from neutral territory, while the MACD remains in negative terrain at –67, though showing early signs of flattening.
On the hourly chart, momentum indicators reflect more strength—RSI has improved to 56 and the MACD is positive at +7, confirming the short-term recovery. The index also sustained above the 20-HMA at 24,635 and the 40-HEMA at 24,659, validating the intraday bullish undertone.
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The derivatives data adds weight to the bullish view. Total Put OI stands higher at 13.75 crore compared to Call OI at 10.88 crore, resulting in a positive OI differential of +2.87 crore. The day’s OI change data is also encouraging: total Call OI rose by 3.61 crore, while Put OI surged by 7.84 crore, creating a net positive differential of +4.23 crore.
This clearly indicates strong Put writing and fresh long positions building up. The 25,000 strike holds the maximum Call OI, making it the immediate supply zone, but it also saw the highest Call OI additions, suggesting traders are bracing for a potential breakout if this level is crossed. On the Put side, the heaviest OI and additions were seen at the 24,500 strike, confirming it as the key short-term support base.
Overall, the Nifty has managed to regain momentum after holding crucial support levels. The immediate resistance lies at 24,850, followed by the psychologically important 25,000 mark. A sustained close above 25,000 could trigger a strong short-covering rally toward 25,200–25,350. On the downside, 24,500–24,400 remains the key zone to protect.
With daily momentum stabilizing and hourly indicators turning positive, the short-term view has shifted to bullish, though follow-through buying above 24,850-25,000 is essential to confirm strength.
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Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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