Buy or sell stocks: The Indian stock market benchmarks, the Sensex and the Nifty 50, closed with healthy gains on Friday, December 5, after the Reserve Bank of India (RBI)cut interest rates by 25 basis points, projected a healthy growth-inflation dynamics and announced a liquidity infusion program through bond buying and dollar-rupee swaps.
The Sensex rose 447 points, or 0.52%, to end at 85,712.37, while the Nifty 50 settled at 26,186.45, up 153 points, or 0.59% on Friday. However, on a weekly scale, both indices ended flat.
With the RBI rate cut done, the focus is now on the US Federal Reserve’s policy decision, scheduled for December 10. Markets globally are discounting a 25 bps rate cut by the US Fed in the coming week.
Stock market next week
The Nifty 50 is trading near 26,200, indicating positive sentiment. However, an upward move to the levels of 26,500 and above is possible if the Nifty sustains above 26,300.
Sumeet Bagadia, Executive Director at Choice Broking, said the Indian stock market sentiment is positive as the Nifty 50 index has surged to near 26,200 levels.
He said the benchmark index is facing a hurdle at 26,300, and a breach of this hurdle on a closing basis will drive the index to 26,500 and 26,800.
“After breaking this hurdle of 26,300 on a closing basis, the 50-stock index may soon touch 26,500 and 26,800. So, one should maintain a stock-specific approach and look at those stocks that are looking strong on the technical chart,” said Bagadia.
Stocks to buy on Monday
Regarding stocks to buy next week, Sumeet Bagadia recommended these three stocks to buy: Larsen & Toubro, JSW Steel, and Marico.
Larsen & Toubro | Buy at ₹4,038.20 | Target price: ₹4,300 | Stop loss: ₹3,900
Bagadia underscored that L&T continues to demonstrate strong bullish momentum, supported by a consistent higher-high and higher-low formation on the daily chart.
This price structure reflects sustained buying interest and signals that the broader trend remains firmly positive.
The stock is also trading comfortably above the key 20, 50, and 200 EMAs, with the rising 20-day EMA acting as dynamic support and reinforcing the ongoing uptrend.
“On the upside, the immediate resistance lies near ₹4,050, where the stock has faced mild hesitation earlier. A decisive break and sustained move above this level could trigger the next leg of the rally, opening the door for higher upside potential,” said Bagadia.
“On the downside, strong support is placed around the ₹3,950–4,000 zone, coinciding with the 20-day EMA. The stock has already shown multiple bounces from this region, indicating strong demand and confirming its robustness as a support base,” Bagadia said.
The RSI at 55.95 remains in a healthy bullish range, suggesting room for further upside without signalling overbought conditions.
“Short-term traders may consider buying at current levels, with a stop loss at ₹3,900 and an initial upside target of ₹4,300, while ensuring disciplined risk management,” Bagadia said.
JSW Steel | Buy at ₹1,162.20 | Target price: ₹1,250 | Stop loss: ₹1,115
Bagadia highlighted that JSW Steel continues to display strong momentum after a sharp rebound from the ₹1,100–1,105 zone, which aligns with a previous swing low.
This region has acted as a firm demand area, with visible accumulation supporting bullish sentiment.
The stock is consistently trading above the 20, 50, and 200 EMAs, reinforcing its positive structure and indicating sustained strength in the ongoing trend.
Price action is now approaching a key trendline resistance, signalling the possibility of an imminent breakout.
“On the upside, immediate resistance lies near ₹1,170, and any break and sustain above this level may accelerate further upside momentum. On the downside, short-term support is placed around ₹1,125, where buying interest has regularly emerged, adding reliability to this support area,” said Bagadia.
The overall setup suggests bullish continuation, supported by stable higher-timeframe structure and moving average alignment.
“Short-term traders may consider buying at current levels, with a stop loss at ₹1,115 and an upside target of ₹1,250, provided appropriate risk management is followed,” Bagadia said.
Marico | Buy at ₹736.65 | Target price: ₹800 | Stop loss: ₹700
Marico is displaying renewed strength after forming a strong bullish closing candle that reinforces positive sentiment.
Marico stock has taken firm support near the ₹710 zone, a level that has repeatedly attracted accumulation and acted as a reliable demand area.
This base-building structure strengthens the near-term outlook and indicates buyers are active on dips.
“On the upside, immediate resistance is placed around ₹740, which has capped price movement in recent sessions. A break and sustained move above this level would confirm bullish continuation and open room for further upside,” said Bagadia.
The stock is comfortably trading above the 20, 50, and 200 EMAs, with the rising short-term averages supporting the ongoing upward bias.
The RSI at 58.96 has bounced back sharply from oversold territory and now sits in a healthy bullish range, signalling improving momentum and potential for trend continuation.
Overall, the technical setup remains constructive with strengthening participation and supportive indicators.
“Short-term traders may consider buying at current levels, keeping a strict stop loss at ₹700 and eyeing an upside target of ₹800, while ensuring disciplined risk management throughout the trade,” said Bagadia.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of the expert, 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.
