Stocks to buy: Nifty snapped its two-month winning run, losing 1.2% in August, largely due to renewed tensions between the US and Iran, which drove oil prices higher again.
The start of September has also been weak; for the month so far, it is down 1.25%.
The Nifty index on Tuesday, 8 September, closed 0.61% lower at 23,635, inching closer to the key support area of 23,600-23,500, which is the confluence of the previous major gap and the July 2026 low.
According to Pabitro Mukherjee, Deputy Vice President - Technical, Bajaj Broking, the daily stochastic and daily 14-period RSI have approached oversold territory. Hence, Mukherjee believes that the Nifty holding above the support area of 23,600–23,500 will lead to a pullback towards the 50-day EMA, placed around 24,150.
On the higher side, only a move above 24,150 will open upside towards 24,500-24,600 levels in the coming weeks, said Mukherjee.