Stocks to buy: The Indian stock market ended the week on a cautious note, extending their ongoing correction as elevated crude oil prices, renewed geopolitical tensions and uncertainty over the global interest-rate outlook continued to weigh on investor sentiment. While benchmark indices staged a recovery on Friday, breaking a four-session losing streak, gains remained limited amid persistent foreign investor selling and concerns over rising energy costs.
For the week, the declined around 1.15% to close at 23,897.70, while the Sensex slipped nearly 1.0% to settle at 76,515.43. Both benchmarks recorded their fourth consecutive weekly decline, highlighting continued weakness in the broader market despite selective buying in individual stocks.
Stock market next week
Nifty 50
opened on a positive note at 23,910, around 37 points higher than the previous close of 23,873. The index initially witnessed an upside move during the first half of the session and touched an intraday high of 24,005.75. However, it failed to sustain the gains as slight profit booking emerged in the latter part of the session. Nifty slipped from the day’s high and finally settled at 23,897.70, up 24.25 points (+0.10%). The price action indicates that the index lost most of its first-half upside momentum amid profit booking, resulting in a marginal gain for the session.
According to Sumeet Bagadia, Executive Director at Choice Broking, Nifty formed a small bearish candlestick on the daily chart, reflecting hesitation at higher levels and continued selling pressure near the resistance zone. The index is trading below its 20-day, 50-day, 100-day and 200-day EMAs, indicating that the broader trend remains weak despite the recent attempts of recovery. Immediate support is placed in the 23,750–23,800 zone, while 24,000–24,050 is likely to act as a crucial resistance area. A sustained move above 24,050 could improve the near-term structure, whereas a break below 23,750 may lead to further downside.
“The RSI stood at 38.37, indicating weak momentum and a bearish bias, while remaining above the oversold zone. India VIX stood at 10.68, indicating relatively subdued market volatility. In the derivatives segment, major Call Open Interest was concentrated around the 24,000–24,100 strikes, suggesting strong resistance at higher levels, while significant Put Open Interest was seen around the 23,800–23,900 strikes, indicating immediate support around the current levels. Overall, Nifty remains in a cautious-to-bearish setup, with 24,000–24,050 acting as the key hurdle and 23,750–23,800 as the crucial support zone,” said Bagadia.
Bank Nifty
Bank Nifty witnessed a largely range-bound session, closing at 57,369.65, down 10.95 points (-0.02%). The index opened at 57,324.55, around 112 points higher, and initially witnessed strong buying momentum, touching an intraday high of 57,753.60 during the first half. However, the failed to sustain higher levels and entered a consolidation phase, eventually touching an intraday low of 57,324.55 before settling near 57,370, indicating indecision at elevated levels.
Bagadia noted that the index formed a consolidation-type candlestick, reflecting a tug-of-war between buyers and sellers. Price action remained volatile but range-bound, with the index giving up its early gains and closing almost flat as selling pressure emerged near the 57,700–57,800 zone. The index continues to hold above its key medium-term moving averages, keeping the broader structure relatively constructive, although near-term momentum remains subdued.
“The RSI stands at 48.22, slipping below the neutral 50 mark and indicating weakening momentum with a mild bearish bias. The immediate support is placed at 57,000–57,100, while 57,600–57,700 remains the key resistance zone. As long as Bank Nifty sustains above the 57,000–57,100 support area, the broader structure can remain stable; however, a decisive breakout above 57,700 would be required to revive bullish momentum, while a break below 57,000 could trigger further weakness,” he added.
Stocks to buy
Sumeet Bagadia has recommended three stocks to buy on Monday, 7 September. The three stock picks by Bagadia are – Visaka Industries, Premier Polyfilm (NDA), and Arihant Capital Markets.
1] Visaka Industries: Buy at ₹93.35 | Target Price: ₹101 | Stop Loss: ₹88.5
2] Premier Polyfilm (NDA): Buy at ₹95.36 | Target Price: ₹104 | Stop Loss: ₹89
3] Arihant Capital Markets: Buy at ₹79.7 | Target Price: ₹86.5 | Stop Loss: ₹75
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.