Buy or sell stocks: The Indian stock market ended the week on a buoyant note, with the Nifty 50 index snapping a four-session losing streak to close at 25,966, decisively reclaiming the crucial 25,900 zone. The rebound was driven by broad-based buying across sectors, supported by a sharp recovery in the Indian rupee from its record lows against the US Dollar (USD) and a return of foreign portfolio investors, who turned net buyers over the past two sessions.
While strong domestic liquidity continues to act as an effective buffer against deeper downside risks, lending resilience to the market structure, the re-emergence of foreign fund inflows is increasingly being viewed as a potential catalyst for the market’s next leg higher, improving overall risk appetite.
Stock market outlook
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment has improved as the Nifty 50 index bounced back strongly after testing the 50-DEMA support placed at 25,750. The 50-stock index is sustaining above the 50-DEMA support and finished at 25,950 levels on Friday. The index is facing a hurdle at the 26,000 to 26,050 band. Breaking above this hurdle on a closing basis would strengthen the bull’s conviction. On the downside, breaking below 25,750 would weaken market sentiment, as the key benchmark index would then attempt to test the next crucial support level at 25,400 to 25,350.
Sumeet Bagadia’s tock recommendations today
Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy-or-sell stocks: Jio Financial Services, BEL, and Asian Paints.
1] Jio Financial Services: Buy at ₹296.95, Target ₹325, Stop Loss ₹288.
Jio Financial Services Ltd’s share price is currently trading at ₹296.95 and is showing early signs of a bullish reversal. Following a corrective decline, the stock has begun to recover, forming a strong bullish candle along with a Morning Star candlestick pattern, which reflects a potential trend reversal and renewed buying interest. The stock is also on the verge of breaking its falling trend line, and a confirmed breakout could lead to further upside momentum.
JIOFIN is approaching its 200-day exponential moving average (EMA) and is also nearing its 20-day EMA. A decisive close above these levels could lead to a move toward the 50-day EMA, thereby strengthening the short-term bullish trend. A sustained close above the psychological resistance level of ₹300 would act as a key breakout confirmation and may trigger a swift rally toward the short-term target of ₹325.
On the downside, immediate support is seen near ₹290. The Relative Strength Index (RSI) stands at 45.64 and is trending upward, indicating improving buying momentum. For prudent risk management, a stop-loss at ₹288 is recommended to guard against unexpected market volatility.
2] BEL: Buy at ₹392.85, Target ₹430, Stop Loss ₹375.
The share price of Bharat Electronics Limited (BEL) is currently trading at ₹392.85 and is showing signs of a bullish reversal. After a corrective decline, the stock consolidated within a narrow range of ₹395 to ₹380, indicating a base formation. It has now started to reverse, forming a strong bullish candle, and is on the verge of breaking out of this consolidation zone, suggesting the potential beginning of a fresh upward move.
BEL continues to trade above its 200-day exponential moving average (EMA), reflecting a positive long-term trend. The stock is also approaching its 20-day EMA, and a decisive close above this level could lead to a move toward the 50-day EMA, strengthening the short-term bullish structure. A sustained close above the psychological resistance of ₹400 would be a key breakout signal and may trigger a swift rally toward the short-term target of ₹430.
On the downside, immediate support is seen at ₹380. The Relative Strength Index (RSI) stands at 43.73 and is trending upward, indicating improving buying momentum. For risk management, a stop-loss at ₹375 is recommended to protect against unexpected volatility.
3] Asian Paints: Buy at ₹2799, Target ₹3000, Stop Loss ₹2700.
Asian Paints’ share price has witnessed a strong impulsive rally in recent weeks, breaking out from a prolonged consolidation zone and moving sharply from the ₹2,350 to ₹2,400 range towards the ₹2,950 levels. This up-move was supported by healthy volumes, confirming strong buying interest and trend strength. Post this sharp rally, the stock has entered a controlled corrective phase, which appears to be a normal retracement rather than a trend reversal.
Currently, the stock is trading around ₹2,800. From a technical perspective, Asian Paints continues to trade above its 50-, 100-, and 200-day EMAs, maintaining a positive broader trend. The 20-day EMA near ₹2,810 is acting as an immediate resistance, while the ₹2,700 to ₹2,720 zone has emerged as a strong support area, aligning with the 50-day EMA and the prior breakout region.
Notably, the recent pullback has been accompanied by declining volumes, indicating the absence of aggressive selling pressure at lower levels. This price–volume behaviour suggests gradual stabilisation and increases the probability of a resumption of the upward move.
On the upside, a sustained move above 2,820 to ₹2,850 could lead to renewed momentum, with the stock likely to test the ₹3,000 zone, which also acts as a psychological resistance.
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.
