Focus will be on global & domestic macroeconomic factors

Mumbai, Aug 22

Global equity markets were mixed over the past one week, while the Indian equity markets outperformed most markets on a weekly basis. The Sensex 30 indices inched ~1% higher during the week.

The BSE midcap and the smallcap indices outperformed the larger peers with weekly gains of 2-2.5%. Almost all the key sectoral indices closed the week with positive gains. The market saw sharp rally in select sectors like automobiles, cement, consumer staples, select consumer durables and some NBFC’s amid government's plan for GST rationalization.

Auto sector was a clear outperformer whereas BSE Bankex and BSE Power indices underperformed on a relative basis. On the macro front, the RBI MPC minutes highlighted the need for a pause to allow the transmission of policy actions, while remaining wary of evolving external sector uncertainties.

Adjusted net profits of the Nifty-50 Index in Q1FY26 increased 7.5% yoy as compared to our expectations of 4% yoy growth.

“With result season behind us, the focus will be on global and domestic macroeconomic factors,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

Equity markets would keenly watch for any announcements with respect to tariffs, as India faces the risk of 50% US tariffs from August 27. On the domestic front, good monsoon, lower inflation and interest rates, lower oil prices and Government efforts to boost consumption are positives.

Stock Picks

SAIL – Buy | CMP: ₹122 | SL: ₹118 | Target: ₹128 / ₹132

SAIL is consolidating near its support zone around ₹120 and is showing signs of strength with improving momentum. The stock is holding well above its short-term moving averages, indicating underlying buying interest. RSI is gradually turning upward, supporting the bullish outlook. A sustained move above ₹123 could open the way for higher levels toward ₹128 and ₹132.

HUDCO – Buy | CMP: ₹214 | SL: ₹206 | Target: ₹225 / ₹235

HUDCO is trading near a key support around ₹210 and has shown steady accumulation. The stock is holding above its short-term averages with improving volumes, suggesting renewed buying interest. Momentum indicators are turning positive, and a move above ₹216 could strengthen the trend toward ₹225 and ₹235

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.