Buy or sell stocks: Following the weak global cues, the Indian stock market extended losses for the second consecutive session on Friday, closing decisively lower amid a deepening selloff led by the IT sector. The Nifty 50 ended at 25,471, down 336 points or 1.30%, while the Sensex plunged over 1,000 points, eroding substantial market capitalisation in a broad-based risk-off move. In this stock market crash on Friday, the market capitalisation of the BSE-listed stocks plunged from ₹472 lakh crore to around ₹465.50 lakh crore, logging an intraday loss of around ₹6.50 lakh crore.
Outlook for the Indian stock market
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market is reflecting a cautious, defensive sentiment, as the Nifty 50 index decisively broke below 25,500. Bagadia said support for the 50-stock index has now shifted to the 25,350-25,300 range. He advised investors to maintain a stock-specific approach and focus on stocks that are showing strong technical chart patterns.
Sumeet Bagadia’s stocks to buy
Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy-or-sell stocks — Bajaj Finance, SBI Life, and Eicher Motors.
1] Bajaj Finance: Buy at ₹1024, Target ₹1100, Stop Loss ₹980.
Bajaj Finance’s share price is showing a bullish recovery setup after a corrective phase from its recent swing high. On the daily chart, the price has broken above the falling trendline resistance, indicating a potential trend resumption and shift in momentum. The breakout is supported by a strong bullish candle near the trendline zone, suggesting fresh buying interest.
Price has reclaimed the 20 EMA and is trading above the 50 EMA, while both short-term averages are turning upward, reflecting strengthening momentum. The stock is also holding above the 100 EMA and well above the 200 EMA, confirming that the broader trend structure remains bullish despite the recent pullback.
2] SBI Life: Buy at ₹2034, Target ₹2175, Stop Loss ₹1930.
SBI Life’s share price is currently in a steady uptrend and consolidating near its recent highs after a strong impulsive rally. The daily price action shows a tight range formation above key moving averages, indicating healthy consolidation rather than distribution.
Price is hovering around the 20 EMA and holding above the 50 and 100 EMAs, which are gradually sloping upward. The 200 EMA is also trending higher, confirming a strong medium- to long-term bullish structure.
Volume remains relatively stable during the consolidation phase, suggesting absorption of supply and accumulation at higher levels. There is no significant spike in selling volume, which supports the bullish bias.
3] Eicher Motors: Buy at ₹8065, Target ₹8500, Stop Loss ₹7750.
Eicher Motors’ share is maintaining a strong bullish structure on the daily chart with a clear formation of higher highs and higher lows, reflecting sustained trend strength and continuation. The stock is currently trading near its all-time high levels, indicating strong momentum and leadership within the trend.
Price is trading above the 20 EMA and 50 EMA, with both short-term averages turning upward, indicating improving near-term momentum. The stock is also well positioned above the 100 EMA and 200 EMA, confirming a strong overall uptrend with proper bullish EMA alignment.
The recent upside move is supported by higher volume than during the pullback phase, suggesting accumulation on dips and active buying during corrections.
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.
