Podcast | Stock picks of the day: Nifty likely to consolidate; 3 stocks which could give 7-10% return

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26 Aug, 2025 12:21

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Rupak De

The Nifty started the session slightly lower on Wednesday and slipped below the previous day’s low towards the closing which not a bullish sign. For the last three trading sessions, the index has been finding support a bit above the 200-days EMA on the daily frame charts.

The last candle has a very small upper wick which suggests selling pressure around the day’s high. In the market, auto stocks ended the session as worst performer whereas metal stocks outperformed the benchmark index for the day.

The volatility index India, VIX, has witnessed a spurt of 8.16 percent during the day. On the options front, 11000 and 11200 Calls added most open interest (OI) whereas 10,700 and 10,500 Puts ended as most active.

Going forward, the Nifty is likely to consolidate within a narrow range of 200 points starting from 10,800 on the downside and 11,000 on the upside.

A decisive breakout on either side will confirm the future trend for the index. A breakdown from the lower band of 10,800 may trigger a selling pressure which may take the index towards 10,500.

On the other hand, 11,000 may act as an immediate resistance, and if the index manages to trade above 11,000 then we may see a rally towards 11,200 levels.

Here is a list of top three stocks which could give 7-10% return in the next 1 month:

Motherson Sumi: Buy| CMP: Rs.242.85 | Target Rs 267| Stop Loss Rs.233| Return 10%

The stock, after a steep correction, is seen consolidating on the daily chart. On the weekly chart, the price has completed ABCD harmonic pattern which suggests a possibility of a bullish reversal in the stock.

A divergence in the daily RSI is being witnessed which may induce a positive shift in bullish momentum in the stock price. Traders can accumulate the stock in the range of Rs 240-245 for the target of Rs 267 and a stop loss below Rs 233.

Adani Ports Ltd: Buy| CMP: Rs. 329.75 | Target Rs 357| Stop Loss Rs.316| Return 8%

After prolong corrective phase, the stock has been consolidating at lower levels. On the daily chart, we saw the formation of an inverted hammer which suggests the possibility of a bullish reversal. The green candles on the daily chart were backed by decent volume. Traders can accumulate the stock in the range of Rs 327-332 for the target of Rs 357 and a stop loss below Rs 316.

Bata India Ltd: Sell| CMP: Rs. 915.30| Target Rs 845| Stop Loss Rs.957| Return 7.65%

The stock price has given a breakdown from the consolidation pattern which suggests increasing pessimism in the stock. The fall in price was backed by a rise in volume.

The momentum oscillator RSI (14) is in bearish crossover and falling suggesting a continuation of bearish momentum. Traders can sell the stock in the range of Rs 930-910 for the target of Rs 845 with a stop loss above Rs 957.

Disclaimer: The author is a Technical Research Analyst at Bonanza Portfolio Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.