Buy or sell stocks: Following the escalation in trade worries after Trump’s 100% pharma tariff, the key benchmark indices of the Indian stock market ended lower for the seventh straight session on Friday last week. The Nifty 50 index moved from 25,423 to 24,654 in these seven successive sessions, logging over 750 points or around 3% dip in this sharp selling. The BSE Sensex has shrunk from 83,013 to 80,426 levels, recording 2,767 points or a 3.33% dip. Trump’s pharma tariffs, H-1B visa fee hike and weakness in the Indian National Rupee (INR) against the US Dollar (USD) are some of the primary reasons that have been dragging the key Indian benchmark indices.
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 down below the crucial support placed at 24,800. The 50-stock index may try to test the 24,400 to 24,350 levels as the key benchmark index has closed below 24,700. The Choice Broking expert said that any rise in the index should be seen as a selling opportunity until the Nifty 50 index is below the 24,900 level.
Speaking on the outlook of the Indian stock market, Sumeet Bagadia said, “The Indian stock market sentiment has turned weak as the Nifty 50 index slipped below the crucial 24,800 support. Now, the index has immediate support at 24,550 to 24,500 levels, while crucial support is placed at 24,300 to 24,250. The key benchmark index may try to test 24,400 to 24,350 in the near term. So, one should look at those stocks that look strong on the technical chart pattern.”
Sumeet Bagadia’s stock recommendations today
Sumeet Bagadia recommended three buy-or-sell stocks for Monday: ITC, Samvardhana Motherson, and LT.
1] ITC: Buy at ₹405, Target ₹430, Stop Loss ₹390.
The ITC share price is attempting to stabilise after a corrective phase. It is currently trading around ₹405. The recent rebound from the ₹390 to ₹395 zone indicates renewed buying interest, suggesting that the stock may form a short-term base.
On the technical front, the ITC share price is still trading below some of its major moving averages—the 20-day, 50-day, and 100-day EMAs—highlighting that the broader trend remains weak. However, the price has approached these resistance levels, and a sustained move above them could trigger fresh upward momentum.
A close above the 20-day EMA would be the first sign of strength, while a breakout beyond the 50-day EMA would confirm a potential trend reversal. On the downside, the 390 level is strong support and a crucial stop-loss zone. Any breach below this level may drag the stock lower.
If ITC share sustains above ₹410 to ₹415, it could pave the way for a rally towards 430, which aligns with its recent swing highs and previous price action resistance. Volume action will be key in validating this breakout.
2] Samvardhana Motherson: Buy at ₹105, Target ₹113, Stop Loss ₹102.
Samvardhana Motherson’s share price shows early signs of strength after a consolidation phase, trading near ₹105. The stock recently found support around the ₹102 to ₹103 zone, where buyers emerged, suggesting accumulation at lower levels. Technically, it is positioned close to key exponential moving averages clustered in the ₹100 to ₹104 range. This area is a strong support base, helping the stock stabilise.
The price action above the 20-day EMA, which is ₹104.40, is encouraging, and a sustained close above this level would confirm short-term bullish momentum. If the stock moves past ₹107 to ₹108 with good volumes, it could unlock further upside toward the immediate target of ₹113. This aligns with a minor resistance zone from previous swing levels. On the downside, ₹102 serves as crucial support and an ideal stop-loss level, as a break below it could invite renewed selling pressure and push the stock back toward the ₹98 to ₹99 region.
Volume activity has been favourable during recent upswings, strengthening the recovery. Traders can consider buying Samvardhana Motherson shares in cash at ₹105 with a stop-loss at ₹102 and a target of ₹113, while keeping a close watch on volumes for confirmation.
3] LT: Buy at ₹3729, Target ₹4000, Stop Loss ₹3600.
The LT share price has registered a decisive breakout from an ascending triangle pattern on the daily chart, signalling the potential start of a fresh upward move. The stock is trading around 3,729, reflecting strong buying momentum after consolidating in the ₹3,600 to ₹3,720 range for several weeks. The breakout is accompanied by improved volumes, lending credibility to the move and suggesting that market participants are accumulating positions.
Technically, the ascending triangle breakout indicates a continuation of the larger uptrend, with higher lows consistently forming since August. The stock has successfully held above its key support trend line, while the horizontal resistance around ₹3,720 has finally been breached. This marks the first sign of strength and opens the door for further upside. The Relative Strength Index (RSI) has also crossed above 60, reinforcing the bullish momentum.
On the downside, strong support lies at ₹3,600, which also serves as an adequate stop-loss level for traders. The bias remains firmly positive if the stock sustains above this zone. From a trading perspective, the LT share looks attractive for a buy in cash at ₹3,729 with a stop-loss at ₹3,600 and a near-term target of ₹4,000. A sustained close above this target zone could trigger an extended rally in the coming weeks.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
