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Ganesh Chaturthi stock picks: The Indian stock market faced a sharp selloff on Tuesday, August 26, with the benchmark Sensex tumbling 849 points to close below the 81,000 level and Nifty 50 ending below 25,000.

The meltdown in the Indian stock market came after the US government issued a draft notice on the implementation of an additional 25% tariff on Indian products, which came into effect today.

Investors lost ₹5.41 lakh crore of their wealth in Terrible Tuesday's selloff amid Trump tariff worries.

The 30-share BSE Sensex tumbled 849.37 points, or 1.04%, to close at 80,786.54. Meanwhile, the 50-share NSE Nifty dropped 255.70 points, or 1.02%, to finish at 24,712.05.

"Sentiment was largely dampened by caution ahead of the upcoming tariff deadline, which weighed heavily on export-sensitive sectors. This pressure was compounded by sustained foreign institutional selling, a weakening rupee, and a rebound in crude oil prices, prompting investors to reduce risk exposure," said Ajit Mishra – SVP, Research, Religare Broking.

Even as the additional US tariffs of 25% come into effect today, taking the overall levy on imports from India to 50%, investors can brace for an impact not before Thursday.

With the stock market holiday today, August 27, on account of Ganesh Chaturthi, investor reaction to 50% tariffs will be visible only tomorrow.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart has recommended three stocks to buy on Ganesh Chaturthi, namely Eicher Motors, Eternal and DMart.

The stock has broken out of a Symmetrical Triangle formation on the longer timeframe with strong volumes above ₹5,700. After retesting the breakout zone of ₹5,800– ₹5,900, it initiated a fresh rally towards ₹6,800. Recently, it has also given a flag pattern breakout supported by strong volumes.

On the upside, a breakout above ₹6,000 could pave the way for a move towards ₹6,800 in the short term, while ₹5,900 remains a crucial support level on the downside.

The overall structure appears promising for long-term investors, as the stock continues to trade above all major moving averages. Moreover, the MACD reinforces the ongoing bullish momentum, while the RSI remains favorably positioned and further strengthens the positive outlook.

The stock has given a strong breakout from a long-term symmetrical triangle formation, supported by healthy volumes, which confirms genuine buying interest. After consolidating between ₹3,900 and ₹4,400, the price moved decisively above the upper trend-line and has since sustained well above the breakout zone, indicating strength in the ongoing uptrend. The stock is trading above all key moving averages (20, 50, 100, and 200 SMA), with the shorter-term averages positioned above the longer-term ones, thereby reinforcing the bullish structure.

MACD (Moving average convergence divergence) is supporting the current strength, whereas the momentum indicator RSI (relative strength index) is also positively poised.

On the downside, ₹4,500 acts as immediate support, with a stronger cushion around ₹4,350– ₹4,300 near the moving average cluster. On the upside, resistance is placed at ₹5,000, and a sustained move above this zone could pave the way towards ₹5,300– ₹5,500 in the medium term. Overall, the stock remains in a robust uptrend, and any dip towards support levels may be considered a buying opportunity for positional traders as well as long-term investors.

The stock has given a flag pattern breakout on the weekly chart and delivered a decisive move above the key resistance zone of ₹305, supported by rising volumes, which signals strong accumulation at lower levels. Post breakout, it has successfully sustained above this level, turning the resistance into an important support zone. The stock is trading comfortably above all major moving averages (20, 50, 100, and 200 SMA), reflecting a well-established uptrend with a positive price structure.

On the downside, ₹305– ₹300 will act as an immediate support zone, while stronger support lies near ₹280, in line with the short-term moving averages. On the upside, the stock could extend its rally towards ₹360– ₹380 levels if it continues to hold above ₹305. Overall, the technical setup indicates a strong breakout with healthy follow-through, and the trend remains positive for both short-term traders and medium-term investors.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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