Nifty 50 faces further downside risk below 25,150 as analysts eye 8 stock picks

The Indian stock market stumbled on Monday, with the Sensex sliding 466 points to close at 82,159.97—a drop of 0.56% that marked the second consecutive day of losses. At its worst moment during the session, the index had fallen nearly 629 points. The selloff was driven by two main currents: anxiety among investors about President Trump's plan to raise H-1B visa fees to $100,000 per worker, which sent IT stocks lower, and weakness in Reliance Industries, one of the market's heaviest weights.

The Nifty 50, the broader benchmark, faced its own pressure. Technical analysts noted that the index had retested a critical support level at 25,150—a point where buyers had previously stepped in to arrest declines. If that level gives way, the next floor sits at 24,960, which aligns with the 34-day exponential moving average. Hrishikesh Yedve, an analyst at Asit C. Mehta Investment Intermediates, said the daily chart had formed a bearish candle, a pattern suggesting further weakness could unfold. On the upside, resistance looms between 25,450 and 25,500. For now, traders should expect the index to trade within a range bounded by 24,960 on the downside and 25,500 on the upside.

The timing of this consolidation matters. Commerce Minister Piyush Goyal was scheduled to travel to the United States on September 22 for trade negotiations—the first such talks since the Trump administration imposed a 50% tariff on Indian goods. Siddhartha Khemka, head of research at Motilal Oswal Financial Services, flagged this as a key event to watch. Markets typically pause and reassess ahead of major policy developments, and these talks could reshape sentiment depending on their outcome.

With uncertainty hanging over the market, several analysts offered stock-specific buying opportunities for traders willing to take tactical positions. Sumeet Bagadia at Choice Broking recommended NBCC (India), which was trading near 114.95 with a target of 123 and a stop-loss at 111. The stock had been moving in a strong uptrend and was forming a rounding bottom—a pattern that can signal the start of a sustained rally. Volume had picked up noticeably, suggesting fresh buying interest. He also liked Eternal Ltd at 341.85, targeting 366 with a stop-loss at 330. The stock had just hit a new all-time high and was displaying a sequence of higher lows and higher highs, the hallmark of a healthy uptrend.

Ganesh Dongre at Anand Rathi identified four stocks worth watching. Finolex Cables was trading at 835 with a target of 875 and support at 820. JB Chemicals & Pharmaceuticals was at 1,720, targeting 1,765 with support at 1,680. Patanjali Foods was at 598, aiming for 630 with a floor at 585. All three had established support levels that had historically cushioned declines, and recent price action suggested reversals from those lows.

Shiju Koothupalakkal at Prabhudas Lilladher rounded out the list with four more names. Enviro Infra Engineers, trading at 271.50, had recently broken above its 50-day moving average and was showing rising momentum in the RSI indicator, suggesting further gains toward 287 were possible with a stop-loss at 264. Intellect Design Arena at 1,072 had pulled back from its 200-day moving average and climbed past its 50-day line, with volume participation picking up—conditions that often precede further upside toward 1,150, with a stop-loss at 1,040. EFC (I) Ltd at 323.90 was trading above its 50-day moving average on the hourly chart with rising volume and a strengthening RSI, pointing toward 344 with a stop-loss at 316.

These recommendations came with the standard caveat: all views were those of individual analysts, not the publication, and investors should consult certified advisors before committing capital. The broader message was clear—while the near-term trend looked uncertain and consolidation likely, pockets of strength remained for those willing to hunt for them.