Buy or sell stocks: Selling in private banks, metal and power stocks, along with weakness in the global markets, pushed the Indian benchmark indices lower for the second straight day on Friday. However, despite this fall, indices recorded their best monthly gains in seven months amid signs of revival in corporate earnings and buying by foreign institutional investors (FIIs).
The 30-share closed 465.75 points or 0.55% lower to settle at 83,938.71. The 50-pack shed 155.75 points or 0.60% to end at 25,722.10.
The broader markets also faced selling pressure, with the gauge falling 0.55% and the declining 0.40%.
Stock market outlook
Sumeet Bagadia, Executive Director at Choice Broking, said the Indian stock market is trading range-bound as the Nifty 50 index is gripped in the 25,700 to 26,100 range. A bullish or a bearish trend can be assumed on the breakage of either side of this range, he added.
Against this backdrop, Bagadia advised investors to maintain a stock-specific approach and look at those stocks that are looking strong on the technical chart. “Looking at breakout stocks can be a good option,” said the Choice Broking analyst.
Sumeet Bagadia’s stock recommendations for Monday
Commenting on some such on Monday, Sumeet Bagadia recommended three companies: , (BEL) and .
Shriram Finance | Buy at ₹748.90 | Target Price: ₹825 | Stop loss: ₹705
Shriram Finance is currently trading at ₹748.90 and has witnessed a strong upmove, giving a decisive breakout from a Symmetrical Triangle pattern on the weekly chart, indicating trend continuation. The stock is trading well above its key exponential moving averages (20, 50, and 200 EMA), reflecting strong bullish momentum and a sustained uptrend.
On the upside, if the stock manages to break and hold above the ₹750 zone, it could trigger a further rally towards higher levels. On the downside, it is finding strong support near ₹705 — the breakout level — which also coincides with the 20-day EMA, suggesting accumulation and a favourable risk–reward setup. The RSI on the weekly chart stands at 74.52, highlighting robust momentum, though slightly in the overbought territory. Overall, traders can consider buying SHRIRAMFIN at ₹748.90 with a stop loss of ₹705 for a target of ₹825.
Bharat Electronics | Buy at ₹426.10 | Target Price: ₹465 | Stop loss: ₹405
BEL is currently trading at ₹426.10 and is showing signs of strength after forming a strong bullish candle on the daily chart. The stock has given a falling trendline breakout followed by a successful retest, and a positive candle emerging from this retest indicates renewed buying interest and strong bullish momentum.
On the upside, immediate resistance is seen around the ₹430– ₹435 zone; a decisive break and sustained move above this level could trigger a further upside rally. On the downside, the stock is taking strong support near its previous breakout level, which also coincides with the 20-day EMA — highlighting a solid support base where accumulation is visible.
The stock is trading above key moving averages (20- and 100-day EMAs), suggesting trend continuation, while the RSI at 65.89 indicates rising bullish momentum.
Traders may consider buying BEL at ₹426.10 with a stop loss of ₹405 and a target of ₹465, while maintaining proper risk management.
Canara Bank | Buy at ₹136.99 | Target Price: ₹152 | Stop loss: ₹129
CANBK is currently trading at ₹136.99 and continues to maintain a higher high and higher low formation on the daily chart, indicating sustained strength and positive momentum. Recently, the stock has given a breakout from a sideways consolidation phase, supported by strong buying interest near its 20-day EMA placed around ₹125. This breakout highlights renewed bullish sentiment and potential for further upside.
The stock is trading comfortably above its key moving averages — 20, 50, and 200-day EMAs — suggesting alignment across short-, medium-, and long-term trends. The momentum indicator RSI is also showing a positive continuation, reinforcing the prevailing bullish bias.
Overall, the technical setup indicates trend strength and the likelihood of further upside if the stock sustains above recent breakout levels. Traders may consider buying CANBK at ₹136.99 with a stop loss of ₹129 and a target of ₹152, while maintaining proper risk management.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.