Indian Stock Market Surges: Nifty 50 and Sensex Rally, Top 4 Stocks to Watch on Wednesday – August 21

The Indian stock market had a strong day on Tuesday, with both the Nifty 50 and Sensex indices closing higher, thanks to positive global cues. The Sensex gained 378 points (0.47%) to end at 80,802.86, while the Nifty 50 rose by 126 points (0.51%) to close at 24,698.85.

Trade Setup for Wednesday

Looking ahead to Wednesday, analysts have given their outlook for the Nifty. Osho Krishan, a Senior Analyst at Angel One, mentioned that Nifty might face resistance in the 24,800-24,850 range. However, if the index drops, it is expected to find support between 24,600-24,500, with a more significant support level at the 20-day EMA around 24,400.

Bank Nifty Outlook

Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd., provided insights on the Bank Nifty. He noted that the Bank Nifty opened higher and continued to see buying interest throughout the day, closing positively at 50,803. A green candle formed on the daily chart suggests strength, with the index touching a high of 51,026. If the index stays above 50,770, it could potentially move toward the 51,200-51,500 range.

Stocks to Buy Today

For those looking to make trades today, market experts Sumeet Bagadia from Choice Broking and Ganesh Dongre from Anand Rathi have recommended the following stocks:

Sumeet Bagadia’s Picks:

1. Kotak Bank: Buy at ₹1,805.65, with a target of ₹1,915 and a stop loss at ₹1,750. The stock has broken out of a Descending Triangle pattern and formed a strong bullish candle, indicating potential upward movement.
2. Muthoot Finance: Buy at ₹1,875, targeting ₹2,030, with a stop loss at ₹1,805. The stock is in a long-term uptrend, showing a series of higher highs and higher lows, and could continue to rise if it stays above the ₹1,900 level.

Ganesh Dongre’s Picks:

3. United Spirits Ltd: Buy at ₹1,408, with a target of ₹1,465 and a stop loss at ₹1,370. The stock has shown a bullish reversal pattern, suggesting it could reach the ₹1,465 mark.
4. Tata Power: Buy at ₹422, targeting ₹438, with a stop loss at ₹410. The stock has broken out at ₹422, and with the RSI indicating strong buying momentum, it could continue to move upwards.

These recommendations are based on the current market conditions and technical analysis. Traders should consider these insights when planning their trades for the day.