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Stock market today: The Indian stock market saw a broad-based selloff on Tuesday, 26 August, as the Sensex tumbled more than 900 points and the Nifty slipped below 24,700 during the session.

The decline was driven largely by investor concerns over Donald Trump’s proposed tariffs, effective 27 August, and no sign of a trade truce between India and the US.

The Sensex opened at 81,377.39, compared with its previous close of 81,635.91, before plunging 950 points, or 1.2%, to an intraday low of 80,685.98. The Nifty 50 started at 24,899.50 versus the prior close of 24,967.75, and dropped 1.1% to the day’s low of 24,689.60.

By the close, the Sensex had recovered slightly to end at 80,786.54, still down 849 points, or 1.04%. The Nifty 50 settled 256 points, or 1.02%, lower at 24,712.05. Broader markets fared worse, with the BSE Midcap index falling 1.34% and the Smallcap index losing 1.68%.

Against this backdrop, market expert Raja Venkatraman has released his top stock recommendations for investors seeking opportunities today, 28 August. His analysis provides a clear roadmap for navigating the current market landscape with confidence.

Why it is recommended: LT Foods Ltd has recently reported significant turnaround ahead of its quarterly numbers but it could not help stem the recent decline. The last few sessions the fall has been quite severe and the prices have tested the cloud support and is showing some robustness. Also, a positive long body candle clearly highlights that there is a premium that is building up to push the trends towards new highs. A fresh uptick is momentum is encouraging.

Benchmark indices Nifty and Sensex closed sharply lower on Tuesday, 26 August, following a broad-based selloff in banking, pharma, and metal stocks.

The decline was triggered by a draft notice outlining US President Donald Trump’s proposal to impose 50% tariffs on Indian goods, sparking investor concerns. The Sensex fell 849.37 points (1.04%) to 80,786.54, while the Nifty dropped 255.70 points (1.02%) to 24,712.05. Market breadth was weak, with 2,751 stocks declining against 1,167 advancing.

Sectoral indices were mostly in the red, led by steep losses in Realty, PSU Banks, Pharma, and Smallcaps. Midcaps and energy stocks dipped over 1%, while metals, infra, oil & gas, and private banks also retreated. FMCG was the lone bright spot, gaining over 1%.

Pharma stocks tumbled after Trump vowed to slash US drug prices by up to 1,500%, renewing tariff threats. India VIX rose over 3%, indicating heightened volatility.

The trading outlook remains choppy, with mixed sentiment continuing to weigh on markets. After three straight sessions of selling pressure, a brief “green patch" offered some relief. Still, Bank Nifty, having broken key support levels, dragged the broader index lower, preventing any sustained recovery.

On Tuesday, the market appeared indecisive but eventually breached the support levels we had highlighted around 24,900, triggering a sharp decline. With monthly expiry approaching, the setup looks weak, drawing traders to the short side as strong support and heavy Put writing cluster around the 24,500 zone.

A gap support, which eventually got filled, offered some respite and drove a sharp recovery. However, the absence of convincing revival signals suggests that any upside will likely remain limited. Over the past few weeks, every recovery attempt has been quickly nullified, reinforcing a cautious stance for the near term.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

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 guarantees 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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