Buy or sell stocks: Profit booking at higher levels, concerns over trade negotiations, and a rise in crude oil prices pulled down Indian benchmark indices — and Nifty — on Friday, ending their six-day winning streak. Banking stocks were the major laggards, with HDFC Bank accounting for nearly half of the overall decline.
The closed 344.52 points, or 0.41%, lower at 84,211.88, while the Nifty 50 slipped 96 points, or 0.37%, to finish at 25,795.15.
Broader markets also ended in negative territory but fared better than the benchmarks, with the BSE Midcap index dipping 0.25% and the BSE Smallcap index easing 0.19%.
Stock market outlook
Sumeet Bagadia, Executive Director at Choice Broking, believes that the sentiment is cautiously positive as the Nifty 50 index is sustaining above the crucial support placed at 25,500.
Speaking on the outlook of the Indian stock market, Sumeet Bagadia said, “The 50-stock index may try to test this crucial support before bouncing back. On a possible looking rebound, the key benchmark index try to retest 26,300 levels.”
Sumeet Bagadia’s stock recommendations for Monday
Regarding stocks to buy on Monday, Sumeet Bagadia recommended three buy-or-sell stocks: Sun Pharma, KPIT Technologies, and Indus Towers.
1] Sun Pharma: Buy at ₹1699, Target ₹1818, Stop Loss ₹1640.
SUNPHARMA is showing signs of recovery after a prolonged consolidation phase and is currently trading around 1699. The recent breakout above the short-term moving averages indicates renewed bullish momentum and suggests that the stock may be entering a positive phase.
On the technical front, SUNPHARMA has closed above its key EMAs respectively, reflecting improving trend strength and signalling a potential shift towards an uptrend. Sustained trading above these averages can further reinforce bullish sentiment.
Volume action has also picked up, supporting the current price up-move, indicating strong participation from buyers.
On the downside, the 1640 level will act as a crucial support zone and a recommended stop-loss for positional traders. A fall below this level could weaken the short-term structure.
If SUNPHARMA sustains above 1717, it may extend the rally towards 1818, which corresponds to its next key resistance and prior swing zone. Momentum indicators and moving averages collectively suggest that the stock is well-positioned for a near-term breakout continuation.
2] Sun Pharma: Buy at ₹1178, Target ₹1270, Stop Loss ₹1135.
KPITTECH is attempting to stabilize after a recent corrective phase and is currently trading around 1178.70. The stock has shown signs of recovery from the 1130–1140 support zone, indicating renewed buying interest and suggesting that it may be forming a short-term base.
On the technical front, KPITTECH is trading near its key moving averages, with the 20-day EMA at 1173, 50-day EMA at 1201. A sustained move above these levels would signal that the broader trend is regaining strength and could trigger further upside momentum.
A close above the 20-day and 50-day EMAs would mark early signs of trend reversal, while a breakout beyond the 100-day EMA would confirm a stronger bullish shift. The improving volume profile also supports the possibility of accumulation at lower levels.
On the downside, ₹1135 will act as a strong support zone and serves as a crucial stop-loss point for traders. Any sustained move below this level could invite short-term weakness.
If KPITTECH manages to hold above 1190, it may pave the way for a rally towards 1270, which coincides with its next key resistance and recent swing high area.
3] Indus Towers: Buy at ₹361.55, Target ₹390, Stop Loss ₹350.
Indus Towers is attempting to regain momentum after a prolonged corrective phase, currently trading around 361.55. The recent rebound from the 340 zone reflects renewed buying interest, suggesting that the stock may be forming a short-term base and preparing for a potential trend reversal.
On the technical front, INDUSTOWER has reclaimed its 20-day, 50-day, and 100-day EMAs indicating early signs of strength. The price is now approaching the 200-day EMA which acts as an immediate hurdle. A sustained close above this level could confirm a bullish breakout and open the door for further upside momentum.
The volume profile also shows a pickup during recent sessions, reinforcing the buying bias and supporting the possibility of continued upward movement.
On the downside, the 350 level serves as a strong support and stop-loss zone, protecting the current up move. Any breach below this support could lead to short-term weakness.
If the stock sustains above the 365–370 zone, it could pave the way for a rally towards 390, aligning with the next resistance level and recent swing highs.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.