Buy or sell stocks: The key benchmark indices of the ended the truncated week on a positive note, posting gains of nearly 1%, and marking their second consecutive day of advances on Friday. The Sensex closed 224 points higher, or 0.28%, at 81,207, while the added 58 points, or 0.23%, to settle at 24,894. Overall market breadth remained positive. Metal stocks led the rally throughout the week, with the Nifty Metal index surging nearly 4% during the week. The sector’s strong performance was supported by multiple factors, including a weaker US dollar index, reports that the European Union might raise steel import tariffs to as much as 50%, an improved demand outlook, and China’s move to curb steel production.
PSU bank stocks were another major contributor, with the Nifty PSU Bank index climbing over 4% for the week. In Friday’s session, metals, PSU banks, and consumer durables led the gains, each rising between 1% and 2%. Meanwhile, the auto, real estate, and healthcare sectors experienced marginal declines, ranging from 0.1% to 0.2%. The broader market continued its recovery, with the Nifty Midcap 100 rising 0.83% and the Nifty Small Cap 100 up 0.69%.
Stock market next week
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market will remain cautious until the Nifty 50 index breaks above the 50-DEMA resistance, placed at the 24,900 level. The Choice Broking expert stated that the key benchmark index is currently in the 24,500-24,900 range. A bullish or bearish trend can be assumed on the breakage of either side of this range.
Speaking on the outlook of the Indian stock market, Sumeet Bagadia said, “The Indian stock market sentiment is cautious despite a decent pullback rally on Friday. However, it would continue to remain a relief rally until the Nifty 50 index decisively breaks above the 50-day EMA resistance, placed at 24,900. On the lower side, the 50-stock index is forming a strong base at 24,500. A bullish or bearish trend can be assumed on the breakage of either side of this range. So, one should look at those stocks that are looking strong on the technical chart.”
Sumeet Bagadia’s stock recommendations
Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three : Tata Steel, NBCC, and BHEL.
1] Tata Steel: Buy at ₹173.21, Target ₹186, Stop Loss ₹167.
Tata Steel’s share is showing signs of strength after a period of consolidation, currently trading around ₹173.21. Tata Steel’s share price has rebounded strongly from its recent support levels, indicating fresh buying interest and the potential for further upside momentum.
On the technical front, Tata Steel’s shares are trading above their key moving averages, suggesting that the short-term trend has turned positive. The price action reflects resilience, and sustained trading above these averages may trigger accelerated buying.
A close above the ₹175 level, which coincides with the current breakout zone, aligns with its recent swing highs and resistance levels from prior price action. On the downside, immediate support lies at ₹167, which also serves as a crucial stop-loss point. Any breakdown below this level could weaken the momentum.
If Tata Steel’s share price sustains above ₹175, it could pave the way for a rally towards 186, strengthening the bullish outlook. Volume participation will be essential to confirm this upward move.
2] NBCC: Buy at ₹113.12, Target ₹121, Stop Loss ₹109.
The NBCC share is attempting to stabilise after a corrective phase, currently trading at around ₹113.12. The recent rebound from the ₹105 zone indicates renewed buying interest, suggesting that the stock may be forming a short-term base.
On the technical front, NBCC’s share is trading close to its key moving average, signalling that the broader trend is attempting to regain strength. A sustained move above these levels could trigger further upward momentum.
A close above the 20-day and 50-day EMA already reflects early signs of strength, while a breakout beyond the 100-day EMA has added confirmation of a potential trend reversal.
On the downside, the ₹109 level serves as strong support and a crucial stop-loss point. Any breach below this level may cause the stock to decline further.
If NBCC’s share price sustains above ₹115, it could pave the way for a rally towards ₹121, which aligns with its recent swing highs and prior resistance zone. Volume action will play a key role in validating this breakout.
3] BHEL: Buy at ₹245.02, Target ₹263, Stop Loss ₹236.
BHEL’s share price is showing signs of strength after consolidating within a symmetrical triangle pattern, currently trading around ₹245. The breakout attempt from this formation highlights renewed buying interest, suggesting that the stock may be entering a fresh bullish phase.
On the technical front, BHEL’s share price is now trading above its key short-term support levels, with the 200-day EMA providing a strong base. The breakout from the symmetrical triangle pattern indicates a potential shift in trend momentum, and sustained trade above this zone could fuel further upside.
A close above the immediate breakout zone shall confirm early signs of strength, while RSI momentum (near 67) also signals improving bullish sentiment.
On the downside, ₹236 serves as a strong support and a crucial stop-loss level. Any breach below this may delay the breakout move.
If the BHEL share price sustains above ₹250, it could pave the way for a rally towards ₹263, which aligns with the breakout target and prior resistance levels. Rising volumes will be key to confirming this breakout move.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.