Stocks to buy under ₹100: After a six-day winning streak, the Indian benchmark indices — Sensex and Nifty — declined on Friday, weighed down by profit booking at higher levels, concerns over trade negotiations, and a surge in crude oil prices.
The Sensex ended the session down 344.52 points, or 0.41%, at 84,211.88, while the Nifty 50 slipped 96 points, or 0.37%, to close at 25,795.15. Broader markets also finished lower but fared better than the benchmarks — the BSE Midcap index declined 0.25%, and the BSE Smallcap index edged down 0.19%.
Stock market outlook
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, believes that the week gone by was nothing short of a roller-coaster ride for the domestic markets. He further added that despite being a truncated week, we witnessed ample action in the benchmark indices.
Speaking on the outlook for Nifty 50, Mehul Kothari of Anand Rathi said, “The NIFTY 50 spot index initially extended its upward trajectory, surpassing the crucial hurdle of 26,000 and even touching a high near 26,100. However, the momentum was short-lived as profit booking in the final two sessions erased all the earlier gains, leading the index to end the week with a marginal change around 25,800.
Technically, NIFTY 50 has already confirmed a breakout above 25,600. However, since the index rallied more than 1,400 points without any meaningful pullback, some profit-taking was evident. Going forward, the zone of 25,600–25,500 is likely to act as a strong support, while the next support lies near 25,300 — the 50% retracement of the recent rally. On the upside, 26,100 remains the key resistance and a true test for the bulls, as a reversal candlestick pattern has appeared on the weekly chart. Unless this level is convincingly surpassed, bears could stage a comeback. Moreover, the lack of participation from the broader markets is concerning. Hence, traders should ideally wait for a decisive breakout above 26,100 in NIFTY 50 or a strong breakout in the Midcap and Smallcap indices before taking aggressive positions.”
On the outlook for Bank Nifty, he further added, “ Even the NIFTY BANK index witnessed heightened volatility during the week. After hitting a weekly high of around 58,600, the index lost over 1,000 points from the top and eventually ended the week on a flat note, reflecting indecision among market participants. Similar to the NIFTY 50, this index too has formed a reversal candlestick pattern on the weekly chart, indicating that the bulls are currently losing momentum. Going ahead, only a sustained move above 58,600 would negate the reversal setup and open the doors for further upside. On the downside, immediate supports are placed around the 57,000–56,400 zone, which coincides with previous swing lows and key short-term moving averages.”
Mehul Kothari’s stock recommendations today
Regarding stocks to buy on Monday, Mehul Kothari of Anand Rathi recommended these three buy-or-sell stocks: Indian Overseas Bank, Suzlon Energy, and HFCL.
1] Indian Overseas Bank: Buy at ₹76| Stop-loss: 73 | Target: 81;
2] Suzlon Energy: Buy at ₹53.50| Stop-loss: 52 | Target: 56.50
3] HFCL: Buy at ₹77| Stop-loss: 74.50 | Target: 82
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
