NIFTY Index Chart Analysis

The benchmark Nifty displayed a firm undertone during the truncated trading week as it ended on a positive note, snapping its six-week losing streak. Despite the shortened week due to the Independence Day holiday on Friday, the index posted a gain of 268 points or 1.10 per cent. Consequently, it formed a bullish candle; however, as the price traded within the high and low of the previous week, the index also formed an inside bar.[EasyDNNnews:PaidContentStart]

Over the long weekend, both domestic and global news flow remained strong. On the domestic front, during his Independence Day address, Prime Minister Shri Narendra Modi spoke about next-generation GST reforms. Following the income-tax relief announced in Budget 2025, the muchawaited GST reforms are expected to boost consumption by lifting disposable incomes. Additionally, S&P Global Ratings upgraded India’s outlook, while positive developments on global peace negotiations helped sustain bullish sentiments. As a result, on Monday, the Nifty 50 index opened with a gap-up, nearly touched the 25,000 mark after 14 trading sessions, and managed to close above the important short-term 20-DMA.

While some profit booking was observed at higher levels, follow-up buying reinforced confidence and the markets extended their rally for the fourth straight day. Importantly, the index has now retraced 50 per cent of the fall from the recent swing high of 25,670 and closed near this level. Given broad-based participation and intraday dips being absorbed, we expect positive momentum to continue. Prices could test the 61.8 per cent retracement zone of 25,154–25,250 and a sustained move beyond this golden ratio would technically open the path towards the recent swing high of 25,550–25,670. The sharp upward slope of the RSI smoothed indicator further supports this positive bias.

On the weekly time scale, the index continues to trade above its 50- and 100-week moving averages, keeping the broader uptrend intact. The weekly RSI stands at 52.50, remaining neutral without divergence, indicating that the market is neither overbought nor oversold. However, it has recorded a bullish crossover on the weekly time frame, validating the positive outlook. The 14-period daily RSI remains on a rising trajectory and the MACD has seen a positive crossover, indicating strengthening bullish momentum.

Hence, traders are advised to adopt a ‘buy-on-dips’ approach. Immediate support lies at 24,850 (the last two sessions’ low), while 24,747 remains a strong support level defined by the 20-DMA. On the sectoral front, thematic moves around GST updates are creating buzz, and traders should remain focused on such spaces for potential outperformance. Sectors such as Nifty Auto are exhibiting relative strength, and hospitality stocks look promising. Select stock-specific action is likely in the coming days, and a decisive move could be seen around the August 27, 2025 deadline, as Trump tariffs are set to come into effect on this date — any resolution prior could help the index surpass the resistance zone of 25,154– 25,250.

STOCK RECOMMENDATIONS

RAYMOND LTD. .................................. BUY ........................... CMP ₹654.05
BSE Code : 500330
Target 1 .... ₹752 
Target 2 ..... ₹783 
Stoploss....₹595 (CLS)

Incorporated in 1925, Raymond was established as a global leader in worsted suiting fabric. Following the demerger of its lifestyle and real estate segments, the company now focuses on its automotive components, engineering tools, and files businesses. Today, Raymond operates 19 manufacturing plants across India, strengthening its presence in the industrial and engineering sectors.

The stock of Raymond surged over 80 per cent from its March 2025 lows to a high of ₹783.90 in July 2025. After registering this high, the stock witnessed a correction that halted near the confluence of the 20-week moving average and the 50 per cent retracement level of the rally from ₹428.51 to ₹783.90. During this corrective decline, the stock saw lacklustre volumes, suggesting a routine pullback after the rally. On August 19, 2025, the stock formed a sizable bullish candle — the most bullish in recent times — accompanied by volume almost 3x higher than the 30-day average.

On the weekly time frame, the MACD is on the verge of generating a bullish crossover. The trend-strength indicator ADX is around 25, indicating healthy strength. The +DI is above both the ADX and –DI, and is rising, which bodes well for the bullish trend. Considering the above factors, we recommend buying this stock for a target of ₹752 – ₹783 with a stop loss of ₹595

FIEM INDUSTRIES LTD .......................... BUY ....................... CMP ₹2,093.25
BSE Code : 532768
Target 1 ...... ₹2,150
Target 2 ..... ₹2,200 
Stoploss.....₹1,970 (CLS)

Fiem Industries Ltd. (FIEM) was founded and incorporated in 1989 by Mr J.K. Jain. FIEM is one of India’s leading manufacturers of automotive lighting and signalling equipment and rear-view mirrors.

The stock has moved above its pivot point with aboveaverage volume — a four-fold rise compared to the 30-day average — indicating larger participation in the direction of the trend. The stock meets most CANSLIM characteristics: it has an EPS Rank of 91 (a great score, reflecting earnings consistency), an RS Rating of 88 (signalling outperformance relative to peers), Buyer Demand at B+ (evident from recent demand), a Group Rank of 25 (indicating a strong industry group), and a Master Score of B, which is close to the highest grade. Institutional holding has also increased in the last reported quarter, which is a positive sign. Among the oscillators, the daily 14-period RSI is in a strong up-move and sustaining above its nine-period average, validating the positive bias. The stock is clearly in an uptrend. The Average Directional Index (ADX), which reflects trend strength, is above 25 on the daily chart, while +DI is above the ADX and rising — all of which is positive for the stock. Considering the above factors, we recommend buying this stock for a target range of ₹2,150–₹2,200 with a stop loss of ₹1,970.

*LEGEND:  ◼ EMA - Exponential Moving Average.  ◼ MACD - Moving Average Convergence Divergence  ◼ RMI - Relative Momentum Index  ◼  ROC - Rate of Change  ◼ RSI - Relative Strength Index
(Closing price as of August 19, 2025)

Disclaimer : Above recommendations are based on various technical parameters and any fundamental input has not been considered for the recommendations. Follow strict stop loss for the recommendation.

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