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Indian equities extended their upward momentum on Tuesday, with the benchmark indices closing firmly in the green, supported by strong global cues and sectoral rotation. The Nifty 50 advanced 103.70 points or 0.42% to finish at 24,980.65, while the Sensex climbed 370.64 points or 0.46% to end the session at 81,644.39. Nifty Bank rose up 130.25 points or 0.23% to close at 55,865.15, reflecting selective buying interest in financial counters, though the upside remained capped.

Why it’s recommended: Godawari Power is showing strong bullish momentum, with the daily RSI at 70, MACD at 5 in positive territory, and ADX at 18, indicating trend strength. The stock has recently broken above major resistance at ₹210 with a head-and-shoulder breakout supported by 8.76M volume, suggesting continuation of the rally.

Pattern: Head-and-shoulder breakout above ₹210 with high volume

MACD: Positive at 5, confirming buy momentum

RSI: 70, in bullish zone

ADX: 18, signaling emerging trend strength

Technical analysis: The breakout structure along with strong volume points to further upside toward ₹244.

Risk factors: Market remains cautious despite strong earnings growth, as reflected in low P/E valuation. Sustainability of margins, cyclicality in steel/iron ore demand, and volatility in raw material costs may weigh on the stock.

Buy at: ₹216

Target price: ₹244

Stop loss: ₹202

Why it’s recommended: Motilal Oswal is showing strong bullish momentum, with the daily RSI at 62, MACD at 10.60 in positive territory, and ADX at 18, indicating a strengthening trend. The stock broke above ₹960 to a new high and is now retesting this level. Sustaining above ₹980 could lead to a rally above 1,000 in the near term.

Pattern: Breakout above ₹960 and retesting support

MACD: Positive at 10.60, confirming buy momentum

RSI: 62, in bullish territory

ADX: 18, signaling trend building

Technical analysis: The retest structure indicates accumulation. A sustained close above ₹980 may trigger fresh momentum toward ₹1,010.

Risk factors: Vulnerability to regulatory changes, interest rate cycles, and market volatility. Asset quality and dependence on capital markets pose additional business risks.

Buy at: ₹959.38

Target price: ₹1,010

Stop loss: ₹932

Why it’s recommended: Tata Motors is showing strong bullish signals, with the daily RSI at 62, MACD giving a positive crossover (value –3), and ADX at 25, indicating strong trend strength. On the 45-minute timeframe, the stock has broken above the upper channel of its trend line, pointing to a continuation rally.

Pattern: Breakout above upper channel on intraday chart

MACD: Positive crossover, signaling buy entry

RSI: 62, in bullish zone

ADX: 25, signaling strong trend

Technical analysis: The breakout with supporting momentum indicates an upside move toward ₹735 in the near term.

Risk factors: Auto sector cyclicality, global slowdown risks, rising raw material costs, and exposure to international markets (Jaguar Land Rover) may impact performance.

Buy at: ₹700.25

Target price: ₹735

Stop loss: ₹682

On Tuesday, sectoral performance showcased resilience across cyclicals and consumption-driven spaces. Pharma (−0.34%), the Financial (−0.06%), and Healthcare (−0.05%) saw mild pressure, but strength from other segments overshadowed this weakness. Oil & Gas surged 1.66%, Auto rose 1.31%, and FMCG added 1.05%, highlighting a clear tilt toward cyclical and demand-led plays.

In stock-specific action, Tata Motors shone with a 3.59% jump, followed by Adani Port which rallied 3.18%, and Reliance which gained 2.78%. However, a few heavyweights restricted the overall upside. Dr. Reddy slipped 1.47%, Bajaj Finance fell 1.07%, and Cipla shed 1.04%.

Softer-than-expected US inflation data revived hopes of a September Federal Reserve rate cut, while domestic retail inflation cooling to an eight-year low of 1.55% lifted investor sentiment. These twin macro positives provided a strong cushion, allowing Nifty to comfortably hold above 24,600 despite sectoral divergences.

The Nifty 50 continued its upward momentum on August 20, 2025, closing at 24,980 with gains of 103 points or 0.42 percent, extending its resilience after recent volatility.

On the daily timeframe, the moving average setup still keeps the broader structure cautious, as the 20-day moving average at 24,747 trades slightly below the 40-day exponential moving average at 24,839. However, with price sustaining above both averages, the undertone is turning constructive.

The daily RSI has strengthened further to 55, moving comfortably above the neutral 50 mark, while the MACD, though still negative at –83, continues to moderate, reflecting fading bearish pressure. This suggests that downside risks are reducing, and momentum is gradually shifting in favor of the bulls.

The hourly chart paints a stronger picture. Here, the 20-hour moving average at 24,849 is firmly above the 40-hour exponential average at 24,765, reinforcing the bullish crossover seen in the previous session. Price action has sustained above this support cluster, confirming intraday strength.

The hourly RSI at 65 reflects healthy bullish momentum, though edging closer to overbought territory, while the MACD remains strongly positive at +95, highlighting continued buying interest. This intraday structure signals that as long as Nifty holds above its short-term averages, dips are likely to attract demand.

The derivatives setup also turned more supportive. Total put open interest has climbed to 14.70 crore against call open interest of 13.23 crore, giving a positive PE–CE difference of 1.47 crore contracts, shifting the trend bias to bullish. Put writers added 4.21 crore contracts compared to just 1.24 crore added on the call side, creating a positive OI change difference of 2.97 crore.

The heaviest call open interest remains at the 25,000 strike, cementing it as the key resistance zone, while the highest addition was seen at the 25,500 strike, indicating supply is building higher up. On the put side, both maximum OI and the largest addition were seen at the 24,900 strike, suggesting traders are actively raising the support base closer to current levels.

With global cues remaining neutral-to-supportive—US equities consolidating, crude steady near $65–66, and the rupee stable around 87.6—the domestic setup remains the key driver.

Overall, the index is transitioning from cautious consolidation into a constructive recovery phase. As long as Nifty sustains above 24,900–24,850, the short-term bias remains positive, and a close above 25,000 could trigger a breakout rally towards 25,500.

On the other hand, a slip back below 24,850–24,765 would weaken momentum and shift focus towards 24,680. In short, the bias has turned bullish, supports are shifting higher, and 25,000 remains the critical level to watch for a decisive breakout.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

Investments in securities are subject to market risks. Read all the related documents carefully before investing.

Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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.

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