India’s benchmark equity indices closed higher on Monday, snapping a four-day losing streak. The Nifty 50 gained 0.91% to end just above 24,550, while the BSE Sensex jumped 746 points to settle near 80,604.
State Bank of India and Grasim Industries led the gains, each rising around 2.2% on strong quarterly earnings, which lifted sentiment in PSU banks (up ~2%) and supported mid- and small-cap strength. However, volatility lingered amid concerns over potential US tariffs on Indian goods and geopolitical uncertainty ahead of the upcoming Trump-Putin meeting.
Amid this, here are two stock recommendations by MarketSmith India for 12 August:
Buy: Bharti Hexacom Ltd (current price: ₹ 1,756.20)
- Why it’s recommended: Promising future growth outlook, prudent debt management, competitive positioning within the telecom sector
- Key metrics: P/E: 61.07, 52-week high: ₹ 2,052.90, volume: ₹25.66 crore
- Technical analysis: Bounces from its 100-DMA
- Risk factors: Regional concentration, legal & regulatory overhangs, risk from corporate actions
- Buy at: ₹ 1,756.20
- Target price: ₹ 1,940 in two to three months
- Stop loss: ₹ 1,690
Buy: Larsen & Toubro Ltd (current price: ₹3,668)
- Why it’s recommended: Diversified portfolio and strong order book, international expansion and infrastructure momentum, foray into aerospace and defence engineering
- Key metrics: P/E: 27.26; 52-week high: ₹3,963; volume: ₹ 665.50 crore
- Technical analysis: Consumption play
- Risk factors: Cyclical and margin pressure in E&C, geopolitical and market dependency risks.
- Buy at: ₹3,650-3,700
- Target price: ₹3,900 in two to three months
- Stop loss: ₹ 3,550
Nifty 50 recap | 11 August
Indian equities kicked off the week on a strong note, staging a sharp rebound after recent declines.
On Monday, 11 August, the Nifty 50 rose 0.91% to close at 24,585.05, while the BSE Sensex gained 0.93% to end at 80,604.08. The recovery came after last week’s nearly 1% drop, the longest weekly losing streak in five years, triggered by US tariff concerns and disappointing corporate earnings. Sentiment stayed upbeat through the session, strengthening in the second half as heavyweights drove a broad-based advance.
Realty, auto, and pharma stocks led the gains, while midcap and smallcap indices added between 0.34% and 0.79%, aligning with the positive trend.
Technical View:
The Nifty formed a higher-high and higher-low pattern and reclaimed its 100-DMA, a constructive sign for trend watchers. RSI rebounded from oversold territory to 41, hinting at improving momentum. However, MACD remains in a bearish crossover, trading below both its signal line and the zero axis, underscoring lingering downside risk.
According to O’Neil’s methodology, the market status has been downgraded to Uptrend Under Pressure after the Nifty breached its 50-DMA and the distribution day count rose to six. A sustained close above 24,600 could reinforce bullish momentum and open the door to 24,800-24,850 in the near term. On the downside, 24,330 serves as immediate support; a decisive break below could trigger a retest of 24,200 and possibly 24,000. Traders should track these levels closely for directional cues.
Nifty Bank Performance | 11 August
Nifty Bank opened Monday on a muted note but soon drew buying interest, closing firmly in the green. The index formed a bullish candle on the daily chart, maintaining a lower-high and lower-low structure while finding crucial support near its 100-DMA.
All constituents ended higher, led by State Bank of India (+2.3%), with Punjab National Bank and Bank of Baroda posting notable gains. The broad-based strength underscores improving sentiment in the banking space, supported by favourable macro trends and upbeat earnings momentum.
On the technical front, RSI edged up to 42, signalling a modest pickup in momentum, though the MACD’s negative crossover keeps short-term caution in play. Under O’Neil’s methodology, Nifty Bank remains in an Uptrend Under Pressure, reflecting a still-fragile environment.
The index’s ability to hold above the 100-DMA will be key for sustaining the rebound. An upside move toward 56,000 is possible if buying persists, while a break below 54,900 could invite renewed weakness and increase volatility in the sessions ahead.
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).
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