Nifty likely to witness short-term reversal; top 5 stocks which can return up to 3% in near term

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26 Aug, 2025 12:21

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By Rajesh AgarwalAUM Capital

Benchmarks closed higher on Thursday, breaking a six-day losing streak as Asian equities rose on hopes that US President Donald Trump’s plan to introduce hefty tariffs on steel and aluminium imports could exclude certain key partner countries. However, the market breadth remained in favour of declines. About three shares declined for every two shares rising on the BSE.

Among sectoral indices, the Nifty PSU Bank index rose over 2 percent higher lead by a rise in shares of India, Bank of Baroda and Syndicate Bank.

Technical Outlook

Nifty

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Rajesh Agarwal

Aum Capital

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The Nifty witnessed a volatile trading session on Thursday. It opened with positive note but failed to hold its opening gains and corrected towards 10,146 levels i.e. around its major moving average of 200 SMA. However, it recovered from day's low and closed with gains of 88.45 points.

The index has formed 'Hammer' candlestick pattern indicating a short term reversal. Furthermore, on hourly scale, oscillators like RSI & MACD has given positive crossover which is a bullish sign.

Nifty Bank

The index has formed a kind of 'Hammer' candlestick pattern around 78.6 percent Retracement level on daily scale. It recovered from day's low of 24,048 marks and closed with gains of 343.55 points. It is heading towards 24,770 levels i.e. 200 SMA which might work as strong hurdle zone.

Nifty Bank managed to close above lower band of Bollinger Band (20, 2) indicating bounce back from current level which cannot be ruled out. Furthermore, RSI (14) is on verge of positive crossover.

Below are the 5 stocks which can be good trades today with up to 3 % return potential

Hero MotoCorp | Rating: Buy | Target: Rs 3635, stop loss: Rs 3545 | Return: 1%

Balkrishna Industries | Rating: Buy | Target: Rs 1060, stop loss: Rs 990 | Return: 3%

Dabur India | Rating: Buy | Target: Rs 334, stop loss: Rs 318 | Return: 2%

Asian Paints | Rating: Buy | Target: Rs 1150, stop loss: Rs 1108 | Return: 2%

Tata Consultancy Services | Rating: Sell | Target: Rs 2950, stop loss: Rs 3045 | Return: 2%

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