Stock recommendations for 22 September from MarketSmith India

Banks, financials, and IT majors dragged the indices lower. Investor caution was amplified by news that the US revoked sanction waivers for India’s operations at Iran’s Chabahar Port, raising geopolitical risks.

MarketSmith India’s Best Stock Recommendations for the Day

Buy: V2 Retail Ltd (current price: ₹ 1,874)

Why it’s recommended: Strong revenue growth, improvement in profitability, aggressive expansion plans, strong margins & unit economics improving
Key metrics: P/E: 79.71, 52-week high: ₹2,097, volume: ₹15.19 crore
Technical analysis: Reclaimed its 100-DMA on above average volume
Risk factors: Execution risk on expansion, execution risk on expansion, margin pressure, intense competition, supply chain & inventory risk
Buy: ₹ 1,855–1,910
Target price: ₹ 2,150 in two to three months
Stop loss: ₹ 1,740

Buy: Tbo Tek Ltd (current price: ₹1,631)

Why it’s recommended: Strong revenue & GTV growth with margin leverage, geographic expansion & platform innovation
Key metrics: P/E: 81.11; 52-week high: ₹2,000; volume: ₹ 246.62 crore
Technical analysis: tight range breakout
Risk factors: Dependence on hotels & ancillaries and airline inventory exposure, competitive landscape & external risks
Buy at: ₹1,610–1,640
Target price: ₹1,940 in two to three months
Stop loss: ₹ 1,490

Nifty 50 recap

The Indian equity market concluded the week on a subdued note, with key benchmark indices snapping a three-day winning streak due to profit-booking at elevated levels. Nifty 50 closed at 25,327.05, down 96.55 points or 0.38%, while BSE Sensex fell 387.73 points, or 0.47%, to settle at 82,626.23. The market breadth was mixed, with advances slightly outnumbering decliners on the BSE, yet selling pressure was evident across broader indices, particularly in the later part of the session.

Sectoral performance varied, with gains in PSU Banking, Realty, and Pharmaceutical stocks. The Adani group was a notable outperformer, with its stocks surging following a favourable report from Sebi. Conversely, the decline was led by heavyweights in the private banking, IT, and FMCG sectors, which faced profit-booking.

Meanwhile, the MACD remains in 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 favorable outlook as long as it sustains above immediate support levels.

Buy: Tbo Tek Ltd (current price: ₹1,631)

Why it’s recommended: Strong revenue & GTV growth with margin leverage, geographic expansion & platform innovation
Key metrics: P/E: 81.11; 52-week high: ₹2,000; volume: ₹ 246.62 crore
Technical analysis: tight range breakout
Risk factors: Dependence on hotels & ancillaries and airline inventory exposure, competitive landscape & external risks
Buy at: ₹1,610–1,640
Target price: ₹1,940 in two to three months
Stop loss: ₹ 1,490

Nifty 50: How the Benchmark Index Performed on September 19th:

Sectoral performance varied, with gains in PSU Banking, Realty, and Pharmaceutical stocks. The Adani group was a notable outperformer, with its stocks surging following a favorable report from SEBI. Conversely, the decline was led by heavyweights in the private banking, IT, and FMCG sectors, which faced profit-booking.

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 moderating, setup — the RSI has cooled off from overbought territory and is now placed at 64 yet continues to hold above the downward-sloping trendline breakout, reinforcing underlying strength. Meanwhile, the MACD remains in 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 favorable 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 Nifty breached its “50-DMA” and the “distribution day count” is at one.

The index paused after touching 25,450 and settled above 25,300, indicating consolidation at higher levels. On the upside, minor support is placed at 25,250, and a sustained move above this level could pave the way toward the next resistance zone at 25,550–25,650. On the downside, a close below 25,250 may trigger further profit booking and drag the index toward the 25,000–24,900 band. Price action around these critical levels will be key in determining the index’s near-term trajectory.

How did Nifty Bank Perform Yesterday?

Bank Nifty opened on a weak note and traded in a volatile manner throughout the session, snapping its 12-day winning streak. The index closed in the red, forming a bearish candle with a lower-high and lower-low price structure on the daily chart, signaling a pause in its strong upward momentum. During the session, Bank Nifty opened at 55,647.95, hit an intraday high of 55,688.75, slipped to a low of 55,355.30, and eventually closed at 55,458.85. The pause after the sustained rally reflects caution among market participants, and the index will need close monitoring in the upcoming sessions for signs of either consolidation or further weakness.

The momentum indicator, RSI, eased slightly, inching lower to 58, indicating a pause in strength, while the MACD continues to trend with a positive crossover in line with the central line, reflecting an underlying supportive bias. According to O’Neil’s methodology of market direction, the index remains categorized as “Uptrend Under Pressure”, underscoring the need for measured optimism and disciplined risk management despite the constructive technical backdrop. Taken together, these mixed signals highlight the importance of monitoring follow-through action in the coming sessions to assess whether the emerging strength can develop into a more sustainable uptrend.

At the current juncture, the index faced resistance near its 100-DMA and closed below that mark. The 55,850 remains a crucial immediate resistance, and a decisive break and sustained trade above it would materially improve the medium-term outlook while inviting further momentum-driven participation. Conversely, profit booking and a slip below the 21-DMA would weigh negatively on sentiment, potentially accelerating downside pressure.

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.uld materially enhance the medium-term outlook and attract further momentum-driven participation. Conversely, failure to hold above the 21-DMA may invite near-term profit-taking. Overall, the index appears well-positioned for a potential breakout, provided sectoral support remains intact.