The Indian stock market witnessed a consolidation phase between August 10-14, characterized by volatility and cautious investor sentiment. According to market reports, the Nifty 50 declined 0.8% to close at 24,366, while the Sensex lost 0.6% to settle at 78,009, reflecting profit-taking after recent gains. Sectoral performance remained mixed, with IT and consumer discretionary stocks showing resilience on strong quarterly updates, while financials, realty, and energy sectors lagged due to crude oil volatility and cautious credit outlooks. The GIFT NIFTY futures suggest that the NIFTY50 index will open 52 points lower on Monday, August 17, indicating continued market weakness.
Market expert Raja Venkatraman from NeoTrader has identified three stocks for trading on August 17. The recommendations include Sumitomo Chemical India (SUMICHEM) at ₹564.95, Havells India at ₹1,298, and Honasa Consumer at ₹502.80. As reported by NeoTrader, Venkatraman's technical analysis suggests these stocks are positioned for potential upward movements based on their technical patterns and sector revival trends.
According to NeoTrader's technical outlook, Sumitomo Chemical India shows strong technical indicators with the Relative Strength Index firmly above 60, indicating potential for strong upward movement. The stock has support at ₹480 with resistance at ₹650, and Venkatraman recommends going long above ₹567 with a stop loss at ₹535 and target price of ₹625 within two months. The company's P/E ratio stands at 48.61 with a 52-week high of ₹617.50.
Havells India at ₹1,298 is recommended for long positions above ₹1,300 with stop loss at ₹1,240 and target price of ₹1,425 over two months. The company has a P/E ratio of 49.32 with 52-week high of ₹1,622.70. Honasa Consumer at ₹502.80 is recommended for long positions above ₹505 with stop loss at ₹480 and target price of ₹570, showing strong Q1 results and momentum indicators despite volatility in the beauty and personal care sector.
According to NeoTrader's analysis, the Nifty formed a weekly Doji candle, signalling indecision between buyers and sellers, with 24,300-24,400 as strong support and 24,700-24,800 as critical resistance. The rupee remained under pressure, hovering near 95.41 per USD, while foreign investors extended selling worth over ₹500 crore and domestic institutions provided support. Venkatraman notes that while the market shows bullish resolve, large-scale volatility continues with every dip seeing some bullishness, indicating that trends need more triggers for sustained momentum.
