Nuvama Wealth has spotlighted Paytm, Nykaa, and VA Tech Wabag for their relative strength, even as Indian equity indices face pressure from rising global crude oil prices. While these stocks show positive momentum, the broader market remains bearish, making technical support levels critical for investors to track.
As the Indian stock market grapples with a broader downtrend, Nuvama Wealth has identified Paytm, Nykaa, and VA Tech Wabag as stocks exhibiting relative strength. The brokerage highlights these three counters for their ability to maintain momentum despite the Nifty and Bank Nifty indices breaching key support levels. This technical divergence suggests these stocks are holding up better than the wider market, which is currently struggling under the weight of macroeconomic headwinds, including Brent crude prices crossing $100 per barrel and rising U.S. Treasury yields.
Technical Momentum in Focus
Paytm continues to capture attention for its recent performance, having touched a new 52-week high. The brokerage analysis notes that the stock is showing significant momentum, with the current price action suggesting a potential test of its original listing price. Analysts at Nuvama have outlined a technical roadmap for the stock, placing a buy entry at Rs 1,751 and a stop loss at Rs 1,680, with a projected target of Rs 1,950. Investors monitoring this counter will likely watch these levels closely to see if the stock can sustain its current trajectory.
Nykaa has similarly drawn interest, trading at valuation levels not seen in the past four years. The stock's current technical structure points toward a potential continued rally. According to the research, the brokerage suggests a buy entry around Rs 343, with a stop loss of Rs 330 and an upside target of Rs 370. The stock is expected to encounter its first major test near the Rs 365 resistance level, which may determine whether the current bullish trend has further room to run.
VA Tech Wabag has also shown a shift in sentiment after finishing a three-month consolidation phase. The stock recently bounced from its 20-day moving average and recorded its highest daily trading volume since early June, a sign of renewed interest. Analysts anticipate that if the stock price can move past the Rs 2,200 barrier, it could quickly head toward a range between Rs 2,350 and Rs 2,400. The brokerage’s technical setup for this counter includes a buy entry at Rs 2,130 and a stop loss at Rs 2,010, targeting Rs 2,450.
Broader Market Context and Risks
While these specific stocks show relative resilience, the overall market environment remains difficult. The Nifty index has breached the critical 23,600 to 23,650 support zone, and the Bank Nifty has slipped below the 56,800 mark. These index breakdowns highlight a bearish trend that could impact even resilient stocks if market-wide selling intensifies. Rising energy costs and global geopolitical concerns continue to weigh on investor sentiment, creating an environment where technical support levels become the primary shield against further downside. For investors, the next steps involve observing whether these identified stocks can hold their support levels, as any failure to maintain these critical price points may signal a weakening of their current relative strength.