Top stocks to buy: The Indian stock market ended the truncated trading week on a weaker note, with elevated crude oil prices and rising global bond yields weighing on investor sentiment. Concerns over the near-term inflationary impact of higher energy costs, along with their potential effect on economic growth, continued to weigh on the markets.
Among the benchmark indices, the Sensex declined 0.65% to close at 74,294.46, while the Nifty slipped 0.22% to settle at 23,346.40. Broader market indices, including the midcap and smallcap segments, ended largely flat after a volatile week, pausing following several weeks of strong outperformance.
“The Indian equity benchmarks ended the week on a negative note, with the Nifty 50 declining nearly 0.22% to close at 23,346, while the Bank Nifty declined 0.44% during the week. Sectoral performance remained under pressure, with Chemical, Technology and Telecom witnessing profit booking and declining nearly 1–4%. From a macro perspective, geopolitical uncertainties remain elevated, particularly around US–Iran tensions and developments in the Middle East. Movements in crude oil prices, global market cues and The US Federal Reserve has reduced interest rates by 0.25 percentage points,” said Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi.
Ganesh Dongre’s market outlook for this week
Dongre believes that market participants will closely monitor the Fed’s stance on inflation, interest rates and economic growth. Any shift in expectations regarding future rate moves could influence global liquidity, bond yields and risk appetite.
“On the macroeconomic front, market participants should continue to closely monitor developments in the Middle East, US–Iran tensions and movements in Brent crude oil prices. Any escalation in geopolitical tensions or disruption to global energy supplies could push crude prices higher, potentially affecting inflation expectations, global risk appetite and foreign fund flows into emerging markets, including India. Therefore, global cues and crude oil movements are likely to remain important sources of near-term volatility for the domestic equity market,” he said.
Nifty 50
According to Dongre, from a technical perspective, the Nifty had entered an overbought zone following its sharp rally, increasing the possibility of profit booking and sideways consolidation. This view has largely played out, with the index continuing to face difficulty sustaining above the 24,500–24,600 resistance zone, which remains a crucial technical barrier as it coincides with the 200-day EMA.
“Currently, the Nifty is holding the previous June month low zone of 23,000–23,250, making this an important support area for the coming week. At the same time, the index has entered an oversold zone on the short-term charts, which could trigger a technical bounce or short-term consolidation from current levels. However, the broader technical structure remains cautious, particularly amid elevated geopolitical tensions and higher crude oil prices,” he added.
Bank Nifty
The Bank Nifty also remained under selling pressure during the week and is currently trading below its 200-day EMA around 56,600, a level the index has breached after a prolonged period. The broader support zone is placed around 55,000–55,300, while the immediate resistance zone is seen around 56,500–57,000. A decisive and sustained breakout above 57,000 would improve the technical setup and could signal a recovery in the banking index, while sustained trading below the 200-day EMA could keep selling pressure intact.
“Hence, traders should remain cautious and closely monitor 23,000–23,250 as the key support zone for the Nifty, with 23,800 acting as an important recovery level. For the Bank Nifty, 55,000–55,300 remains the key support zone, while 56,500–57,000 is the important resistance area. A sustained breakout above the respective resistance levels would provide confirmation of renewed upward momentum, whereas a decisive breakdown below the key support zones could lead to further corrective pressure. Overall, traders may adopt a cautious approach and closely track global cues, crude oil prices and upcoming central-bank commentary before taking aggressive positions,” Dongre said.
Weekly stocks to buy or sell
DLF: Buy at ₹645-650, target price of ₹680, stop loss of ₹630.
PN Gadgil Jewellers: Buy at ₹600-605, target price of ₹640, stop loss of ₹580.
Hindustan Petroleum Corp: Buy at ₹351-355, target price of ₹368, stop loss of ₹346.
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.
