Buy or sell stocks: On account of FII outflows, weak Q3 earnings trends—especially in IT and consumption sectors, continued weakness in the Indian Rupee, and renewed fear of Trump’s Greenland tariffs on NATO countries, the Indian stock market finished lower after logging strong gains during the first half of trade during the Friday session. The Nifty 50 index finished 241 points lower at 25,048, the BSE Sensex today crashed 769 points and closed at 81,537, whereas the Bank Nifty index nosedived 727 points and ended at 58,473.
Stock market outlook
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment is weak, as the Nifty 50 index has broken below the 200-DEMA support at 25,100 and is unable to sustain at higher levels. The Choice Broking expert said the Nifty 50 price action suggests selling pressure at higher levels and a lack of follow-through buying.
Speaking on the outlook of the Indian stock market, Sumeet Bagadia of Choice Broking said, “The Indian stock market bias is weak as the Nifty 50 index has given a decisive breakdown at 200-DEMA placed at 25,100. Now, the 50-stock index has crucial support placed at 24,900. Breaking below this support means more selling pressure, and in that case, the key index may find the next support at the 24,500 to 24,400 band, the next looking demand zone on the technical chart pattern. On the upper side, the index needs to close above 25,500 to strengthen the conviction of bulls.”
Sumeet Bagadia’s stock recommendations
Regarding stocks to buy for the short term, Sumeet Bagadia recommended buying these three shares: HUL, Tech Mahindra, and ONGC.
1] HUL: Buy at ₹2410, Target ₹2600, Stop Loss ₹2330.
HUL’s share price is currently in a range-bound consolidation phase after a corrective move from higher levels. On the daily chart, price has recently bounced from lower levels and is now trading around the 200 EMA zone, indicating an attempt to stabilise.
2] Tech Mahindra: Buy at ₹1701, Target ₹1800, Stop Loss ₹1630.
Tech Mahindra’s share price is showing a strong bullish continuation setup on the daily chart. After a steady uptrend, the stock formed a falling channel, which is a classic bullish continuation pattern. The recent breakout above the channel resistance confirms a resumption of upward momentum.
Price is trading comfortably above the 20 EMA and 50 EMA, both of which are sloping upward, reflecting strong short-term strength. The stock is also holding well above the 100- and 200-EMA levels, reaffirming the broader bullish trend.
The breakout has been supported by a noticeable pickup in volumes, while pullbacks within the channel were accompanied by lower volumes, highlighting healthy accumulation.
3] ONGC: Buy at ₹245.50, Target ₹260, Stop Loss ₹238.
ONGC share price is trading in a sideways-to-positive structure on the daily chart after recovering from lower levels. The stock has reclaimed the 20 EMA and 50 EMA, indicating improving short-term momentum.
However, the 200 EMA remains a crucial resistance, near which the stock is currently consolidating. A sustained close above this level would be essential to confirm a trend reversal and attract fresh buying interest.
Volume activity has remained steady, suggesting gradual accumulation rather than aggressive buying.
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.
Key Takeaways
- Market sentiment is currently weak, affecting key indices like Nifty 50 and Sensex.
- Key support levels for Nifty 50 are at 24,900, with potential further declines if broken.
- Recommended stocks for buying include HUL, Tech Mahindra, and ONGC, each with specific targets and stop-loss strategies.
