Buy or sell stocks: The key benchmark indices of the Indian stock market ended lower on Friday as a sharp sell-off in financial stocks, lingering uncertainty over a lasting peace agreement in the Middle East, and investor caution ahead of the closely watched U.S. non-farm payrolls report weighed on market sentiment. The US jobs data is expected to influence expectations for the Federal Reserve’s policy trajectory, although it remains only one of several factors shaping market sentiment.
Financials bore the brunt of the decline after the Reserve Bank of India’s draft proposal to tighten lending norms for non-banking financial companies (NBFCs) raised concerns over the sector’s long-term growth prospects. Shares of Bajaj Finance and Bajaj Finserv were among the biggest drags on the benchmark indices, with selling pressure spreading across the broader NBFC space as investors assessed the potential implications of the proposed regulatory changes.
Stock market outlook
Sumeet Bagadia, Executive Director at Choice Broking, believes the Nifty 50 index’s daily chart indicates selling pressure at higher levels, although the 50-stock index continues to trade above its key moving averages. The RSI at 59.89 remains in the bullish zone, while India VIX at 12.15 and PCR at 1.09 suggest a cautiously positive undertone. Sector-wise, Auto, IT, and MidSmall Healthcare outperformed, whereas Financial Services and Private Banks were the key laggards. Bagadia said the broader trend remains positive, although the inability to sustain above 24,600 suggests the index may continue to consolidate in the near term.
“Immediate support is placed at 24,300–24,370, while 24,700–24,750 remains the key resistance zone. A sustained move above resistance could trigger fresh buying momentum, whereas a break below support may prompt short-term profit-booking. The expected trading range for the next session is 24,300–24,750,” said Bagadia.
On the outlook of the Bank Nifty index, Sumeet Bagdia of Choice Broking said the Bank Nifty is likely to witness a Sideways to Bearish trend in the near term unless it decisively reclaims the 57,800–58,000 resistance zone. Immediate support is at 57,200–57,400, where buying interest is expected to emerge, while 57,800–58,000 remains the key hurdle to any further upside.
“A sustained move above the resistance zone could revive bullish momentum, whereas a break below support may accelerate corrective pressure. The expected trading range for the next session is 57,200–58,000,” he added.
Sumeet Bagadia’s stock recommendations
Regarding Monday’s buy-or-sell stocks, Sumeet Bagadia recommended buying Federal Bank, M&M, and TCS.
1] Federal Bank: Buy at ₹356, Target ₹390, Stop Loss ₹338.
Federal Bank shares are currently trading around ₹356 and continue to exhibit a strong higher-high, higher-low formation on the daily chart, reflecting a well-established bullish trend and sustained buying interest. The stock has consistently found support near its upward-rising EMAs, highlighting the strength of the prevailing trend. Recently, it took support at the 20-Day EMA and formed a Bullish Engulfing candlestick pattern, indicating renewed demand and a possible continuation of the ongoing upmove.
2] Mahindra & Mahindra (M&M): Buy at ₹3502, Target ₹3800, Stop Loss ₹3350.
M&M share price is currently trading around ₹3502 and has recently delivered a decisive breakout above its 200-Day EMA resistance, accompanied by a breakout above its recent swing high, indicating renewed bullish momentum and strengthening market sentiment. The stock has also witnessed a bullish EMA crossover, reinforcing the positive trend structure.
3] TCS: Buy at ₹2453, Target ₹2700, Stop Loss ₹2325.
TCS share price is currently trading around ₹2453 and has witnessed a strong rebound from lower levels, indicating renewed buying interest and improving market sentiment. The stock is forming a Flag and Pole continuation pattern, suggesting that the recent consolidation could pave the way for the next leg of the uptrend. Additionally, a short-term EMA bullish crossover has been observed, reflecting strengthening price momentum and improving trend dynamics.
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.
