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On Tuesday, 26 August, Indian equities ended the session on a weaker note, as profit-taking and selling pressure weighed across the board. 

The Nifty 50 fell by 255.70 points or 1.02% to close at 24,712.05, while the BSE Sensex dropped 849.37 points or 1.04%, finishing at 80,786.54. 

The Bank Nifty underperformed further, slipping 688.85 points or 1.25% to settle at 54,450.45, reflecting continued strain in financial counters.

Why Hindware Home is recommended: Hindware Home has been showing consistent strength, with daily RSI at 67 confirming bullish momentum. The MACD is firmly positive at 10, and ADX at 21 indicates that the uptrend is gaining traction. Importantly, the stock has recently taken strong support from its 20-EMA, suggesting that buyers are defending key levels. 

The company is positioned in the consumer durables and building products space, where demand recovery has been strong on the back of urban housing and renovation trends. This sectoral tailwind, combined with the stock’s technical setup, makes it a strong candidate for continuation of the rally.

: Pattern: Support bounce from 20-EMA

RSI: 67, bullish momentum 

MACD: Positive at 10

ADX: 21, trend strengthening

Technical view: The support at the 20-EMA indicates that the rally is intact, projecting upside potential towards ₹335.

Risk factors: Moderate leverage makes the company sensitive to changes in financing costs. Demand is linked to discretionary spending, which could weaken in a slowdown. Margins are exposed to volatility in raw material and freight costs.

Buy at: ₹318.50

Target price: ₹335

Stop loss: ₹311

Why Hindalco Industries is recommended: Hindalco has displayed resilience after recent consolidation, with daily RSI at 56, MACD positive at 7, and ADX at 17 showing signs of trend revival. The stock has a strong demand base around ₹698, which is acting as a crucial support zone. 

Fundamentally, Hindalco benefits from its leadership position in aluminium and copper, supported by strong demand from automotive, aerospace, and renewable energy sectors. With global aluminium prices stabilizing and Novelis (its subsidiary) maintaining steady demand from packaging and EV markets, the setup provides fundamental backing to the technical view. A sustained trade above ₹698 could lead to an accelerated rally.

Pattern: Support established at ₹698 zone

RSI: 56, steady bullish bias

MACD: Positive at 7

ADX: 17, trend gaining traction

Technical view: Holding above ₹698 strengthens the base, paving the way for an upside move towards ₹740.

Risk factors: Business is cyclical and highly exposed to fluctuations in global aluminium and copper prices. Higher energy and coal costs may compress profitability. Global operations bring currency and geopolitical risks, particularly from the US and China.

Buy at: ₹705.70

Target price: ₹740

Stop loss: ₹688

Why Dishman Carbogen is recommended: Dishman Carbogen has shown improving technical strength, with daily RSI at 58, MACD at 5, and ADX at 24 confirming steady momentum. On the 45-minute chart, the stock has given a rectangle breakout, often signaling accumulation followed by a continuation rally. The breakout suggests that the stock is preparing for a pullback move toward higher levels. 

On a fundamental note, the company operates in the pharma CRAMS (custom research and manufacturing services) space, which continues to attract global demand due to outsourcing trends in drug development and specialty manufacturing. Recent operational focus on cost controls and capacity expansion adds further confidence in the technical breakout.

Pattern: Rectangle breakout on intraday timeframe

RSI: 58, supporting bullish momentum

MACD: Positive at 5

ADX: 24, confirming trend strength

Technical view: Breakout setup suggests a pullback rally towards ₹286.

Risk factors: Order book can be lumpy, leading to volatility in revenue flow. High dependence on regulatory clearances in global markets. Competitive pressures in CRAMS could limit margin expansion.

Buy at: ₹271.65

Target price: ₹286

Stop loss: ₹265

Target price:  ₹450 in 12 months

Stop-loss:  ₹320

Why REC is recommended: Rural Electrification Corporation Ltd, established in 1969, is a leading ‘Maharatna’ enterprise, classified as an infrastructure financing company, a public financial institution, and a non-banking financial company (NBFC). REC provides financing across the the power sector, including generation, transmission, distribution, and renewable energy. It also supports emerging technologies such as electric vehicles, battery storage, pumped storage, green hydrogen, and green ammonia.

REC now also finances non-power infrastructure projects such as roads, expressways, metro systems, airports, ports, IT and communication networks, and electro-mechanical (E&M) projects related to industries like steel and oil refineries.

In FY25 it saw 18% year-on-year growth in disbursements to ₹1.91 trillion up from ₹1.61 trillion in FY24. The company achieved its highest-ever loan book at ₹5.67 trillion (11% growth YoY) and recorded a record profit of ₹15,713 crore (12% YoY growth). Net interest income surged 27% to ₹19,878 crore, and asset quality continued to improve. Total revenue climbed 19% YoY to ₹55,980 crore. Shareholders received ₹18 per share in dividends, a 180% increase, with earnings per share (EPS) coming in at ₹59.55 for FY25.

The company’s net interest margin (NIM) improved by 6 basis points year-over-year to 3.63% in FY25 and is projected to stay between 3.5% and 3.75% in FY26. REC is targeting a loan book of ₹10 trillion by FY30, growing at a CAGR of 12%. It anticipates disbursements of ₹2-2.1 trillion in FY26, with prepayments expected to remain around ₹1 trillion annually. Transmission and smart metering projects represent a ₹1.1 trillion opportunity over the next 2-3 years.

In Q1 FY26, the company recorded its highest-ever quarterly disbursements, which increased by 36% YoY to ₹59,508 crore. Loan book grew at a rate of 10% YoY to ₹5.84 trillion. The company has reported robust performance over the period, with total income increasing by 13% YoY to ₹14,734 crore, up from ₹13,037 crore in Q1 FY25.

Net interest income grew by 17% YoY to ₹5,247 crore, and NIM improved to 3.74%. Net worth increased by 10% YoY to ₹79,688 crore. Net profit rose to ₹4,451 crore, up by 29% YoY.

With a current book value of ₹58,000 crore, REC aims to invest ₹3 trillion in renewable energy by 2030. Additionally, the revolving bill payment facility, sanctioned for five years, is expected to result in disbursements of ₹80,000- ₹90,000 crore in FY26. With EPC contracts completed, disbursements are expected to rise in the coming year.

Risk factors: REC faces exposure to financially weak clients, especially state-owned power companies, which introduces credit risk.As of Q1 FY26, 87% of its total loan book was concentrated among state/joint sector borrowers, creating concentration risk.The company is also vulnerable to regulatory changes, shifts in customer preferences, and evolving technologies.

Target price:  ₹150 in 16-24 months

Stop-loss:  ₹90

Why Bajaj Housing Finance is recommended: Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank (NHB), was established in 2015 and began lending operations in 2017. BHFL provides various financing solutions, including home loans, loans against property, lease rental discounting, and developer funding, with a strategic focus on maintaining a low-risk, medium-return profile.

In FY25, BHFL surpassed an AUM of ₹1 trillion, hitting ₹1.14 trillion. Of this, 56.2% was from home loans, 10.7% from loans against property, 19.1% from lease rental discounting, 12.5% from developer finance, and 1.5% from other sources.The company has expanded its presence to 217 branches across 175 locations in 21 states.

Since FY18, BHFL’s AUM has seen a remarkable CAGR of 64%. In FY25, the company reported a total income of ₹9,576 crore, a 25.7% increase year-over-year. Loan disbursements rose to ₹14,254 crore from ₹11,393 crore, marking a 25% growth. Profit after tax (PAT) reached ₹2,163 crore, also up 25% YoY.

BHFL has consistently reduced its operating expense (OPEX) ratio, dropping from 74.6% in FY18 to 20.8% in FY25, while significantly improving return metrics. Return on equity (ROE) grew to 13.4% from 7.8% in FY21. Asset quality remains strong, with gross NPAs at just 0.11% and a provision coverage ratio of 60% as of FY25. Net interest margin (NIM) was stable at 4% in Q4FY25.

In Q1 FY26, the AUM improved by 24%, standing at ₹120,420 crore. Lower AUM growth was caused by the real estate market's slowdown and fiercely competitive pricing, which increases attrition. BHFL witnessed a disbursement growth of 22% of ₹14,651 crore from ₹12,004 crore during Q1 FY25, with 56% coming from home loans. PAT grew by 21% to ₹583 crore with RoA of 2.3% and RoE of 11.6%.

With GNPA at 0.30%, NNPA at 0.13%, and annualised credit cost at 0.16%, asset quality stayed strong. Opex to NTI stayed constant at 21.2% in Q1 FY26 compared to 21.0% in Q1 FY25 in terms of operating efficiencies. PBC was 61.71%, which is lower than the 60% regulation threshold.

Management has guided for 24-26% AUM growth in the medium term, with expectations to bring down the OPEX ratio further to 14-15%. Gross NPA is projected to remain steady in the 40-60 basis point range. ROE is anticipated to improve to 13-15%. As of FY25, BHFL's leverage stood at 5.2 times, with medium-term plans to increase it to 7-8 times. The debt-to-equity ratio was 4.1 times. To fuel future expansion, the company plans to invest significantly in Strategic Business Units (SBUs) and expand further into non-metro markets during FY26.

Risk factors: BHFL operates in a highly competitive housing finance sector, particularly in the affordable housing space. It risks margin compression and potential loss of market share if it needs to lower interest rates to remain competitive. Additionally, it faces geographic concentration risk, as its business is heavily focused in four states and the New Delhi region.

Why it’s recommended: Outstanding operational performance in FY25, diverse product portfolio & market reach, strategic infrastructure & logistics, and top-tier ESG credentials

Key metrics: P/E: 22.90, 52-week high: ₹234.39, volume: ₹213.02 crore

Technical analysis: Trending above all its key moving averages with a positive bias

Risk factors: Raw material price volatility and FX exposure, policy & market dependency in a concentrated domestic market, evolving agricultural trends

Buy: ₹225

Target price: ₹255 in two to three months

Stop loss: ₹210

Why it’s recommended: Rapid capacity expansion and backwards integration, robust order book and execution capability

Key metrics: P/E: 39.31; 52-week high: ₹3,743; volume: ₹4,695.11 crore

Technical analysis: downward-sloping trendline breakout

Risk factors: Export trade challenges and US probe risk, intense price competition and supply overhang

Buy at: ₹3,200-3,280

Target price: ₹3,800 in two to three months

Stop loss: ₹3,050

Buy at ₹438 and dips to ₹420, stop loss at ₹410, target price ₹475-490

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.

P/E: 76.60

52-week high: ₹518.35

Volume: 2.01M

Technical analysis: Support at ₹410, resistance at ₹490

Risk factors: Demand conditions in urban areas and seasonality headwinds

Buy: At current market price and dips to ₹420

Target price: ₹475-490 in 1 month

Stop loss: ₹410

Buy at ₹323 and dips to ₹305, stop loss at ₹300, target price ₹336-345

Why it’s recommended: Certain real estate stocks demonstrated a strong rebound from lower levels taking a cue from Ashiana we note that this stock has managed to demonstrate a trended action in the last few weeks. Despite the strong push backed by volumes that are suggesting a trended action we will encounter some periods of consolidation. As momentum is also picking up providing a favourable tailwind, we can consider some bullish prospects.

P/E: 88.85

52-week high: ₹395.90

Volume: 401.58K

Technical analysis: Support at ₹290, resistance at ₹400

Risk factors: Industry competition , market volatility, elongated operating tailwind

Buy: current market price and dips to ₹305

Target price: ₹336-345 in 1 month

Stop loss: ₹300

Buy at ₹1,245 and dips to ₹1,180, stop loss ₹1,165, target price ₹1,325-1,350

Why it’s recommended: Globus has been going through a rough patch and the V shaped recovery backed by volumes are suggesting a trended action . The last few days the prices have been indicating the strong push above value area resistance around 347 augurs well for the prices. As momentum is also providing a favourable tailwind, we can consider some bullish prospects.

P/E: 133.19

52-week high: ₹1369.75

Volume: 95.31K

Technical analysis: Support at ₹1125, resistance at ₹1450

Risk factors: Industry competition , market volatility, elongated operating tailwind

Buy: At ₹1245 and dips to ₹1180

Target price: ₹1325-1350 in 1 month

Stop loss: ₹1165

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

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O'Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543)

Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.

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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