Stock market today: The key benchmark indices of the Indian stock market closed sharply lower on Tuesday, August 26, amid intense selloff pressure across key sectors, with bears firmly in control of Dalal Street. Geopolitical jitters triggered the sharp correction after a draft proposal surfaced indicating former US President Donald Trump’s intent to impose a steep 50% tariff on Indian imports. The Nifty 50 plummeted 255 points, or 1.02%, to settle at 24,712.05, reflecting broad-based weakness.
Sectoral breadth was profoundly negative, with Realty, PSU Banks, Pharma, and Small Caps leading the laggards. Midcap and Energy counters also witnessed profit-booking, shedding over a per cent each. Metals, Infra, Oil & Gas, and Private Banking names traded in the red, mirroring the broader downtrend. Conversely, FMCG stocks bucked the trend, emerging as the lone sectoral gainer with a solid uptick of around 1%, signalling a flight to defensives. Auto stocks failed to hold ground and closed lower, dragged by persistent selling pressure. Market volatility spiked, with the India VIX climbing over 3%, signalling heightened risk aversion and caution among market participants.
Trade setup for Thursday
Speaking on the outlook of the Nifty 50 index, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “The underlying short-term trend of the Nifty 50 Index is weak, and the next lower support levels to be watched are around 24,600, followed by 24,400 levels. However, any sustainable bounce back above 24,900 could open more short covering for the near term.”
On the outlook of the Bank Nifty today, Bajaj Broking Research said, “The Bank Nifty index formed a sizable bear candle with a lower high and lower low signalling continuation of the corrective decline as the index closed below the 100-day EMA. Index in the process closed below the last 3 weeks’ range (54,900-56,100), highlighting extension of the decline. Failure to move above 55,000 will keep the bias down and open downside towards 54,000 and 53,500 levels in the coming sessions. Key support is placed at 53,500 levels, the confluence of the 200-day EMA and the low of May 2025.”
Trump tariffs on India in focus
Asked about the overall outlook of the Indian stock market today, Siddhartha Khemka, Head of Research — Wealth Management at Motilal Oswal, said, “Indian equities extended losses on Tuesday, weighed down by escalating global trade concerns ahead of the implementation of fresh US tariffs on Indian goods. The US President had notified an additional 25% duty, taking the total levy to 50%, which comes into effect from August 27. Globally, sentiment was further hit after the US President moved to fire Fed Governor Lisa Cook on allegations of falsifying mortgage documents and threatened export curbs on chips in retaliation against digital services taxes. Investors will closely watch any deferral of the secondary tariffs on Indian goods, as that could meaningfully lift near-term market sentiment.”
Stocks to buy today
Regarding stocks to buy today, Sumeet Bagadia, Executive Director at Choice Broking, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, and Shiju Kuthupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, recommended eight intraday stocks for today: Britannia, Craftsman Automation, Ashok Leyland, Aurobindo Pharma, Bank of India, IPCA Lab, LT Foods, and Hyundai Motor India.
Sumeet Bagadia’s stock recommendations today
1] Britannia: Buy at ₹5765, Target ₹6200, Stop Loss ₹5555; and
2] Craftsman Automation: Buy at ₹7158, Target ₹7600, Stop Loss ₹6850.
Ganesh Dongre’s shares to buy today
3] Ashok Leyland: Buy at ₹131, Target ₹137, Stop Loss ₹126;
4] Aurobindo Pharma: Buy at ₹1050, Target ₹1100, Stop Loss ₹1020; and
5] Bank of India: Buy at ₹112, Target ₹118, Stop Loss ₹108.
Shiju Kuthupalakkal’s buy or sell stocks
6] IPCA Lab: Buy at ₹1434, Target ₹1500, Stop Loss ₹1405;
7] LT Foods: Buy at ₹437.55, Target ₹460, Stop Loss ₹428; and
8] Hyundai Motor India: Buy at ₹2492, Target ₹2620, Stop Loss ₹2440.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.