Stocks to buy: The Indian stock market ended the volatile trade on Friday in the green, helped by gains in the IT stocks as upbeat US jobs data eased economic concerns. A rally in financials also supported the index.
The 30-share BSE Sensex ended 193 points or 0.23% higher at 83,433. Meanwhile, its 50-share counterpart, the NSE Nifty 50 index, gained 56 points or 0.22% to end at 25,461.
However, for the week both benchmarks lost about 0.7% as caution ahead of a US-India trade deal kept investors on the sideline.
Stock Market Outlook
Nifty 50
- Levels to watch out for: 25,600-26,000 / 25,250 – 24,500
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi said similar to May 2025, the month of June also witnessed a phase of consolidation for Nifty and the broader markets.
“Despite persistent geopolitical tensions between Iran and Israel, the index neither faced a significant breakdown nor showed any meaningful upside for most of the month. However, sentiment improved sharply towards the end of June after Donald Trump announced a ceasefire agreement, which the markets welcomed positively. This triggered a breakout above the crucial 25,300 resistance, allowing NIFTY to end the month with healthy gains of nearly 3%,” Kothari added.
The expert said that a decisive breakout above the 25,300–25,600 resistance zone is crucial to reignite bullish momentum. “While NIFTY did manage to break above the 25,300 mark, it has struggled to sustain above 25,600. Technically, the breakout is valid, but sustainability above 25,600 remains critical to confirm further upside. If the index manages to hold above this level, we anticipate a potential extension of the rally towards 25,800–26,000,” Kothari noted.
However, he added that a slip below 25,250 would negate the breakout, potentially trapping the bulls and leading to a corrective phase.
Therefore, he believes the coming weeks are crucial to observe whether the market delivers the required follow-through
“For now, the undertone has turned bullish, but the tides can shift quickly. We continue to advise traders to remain highly stock-specific, stay light on positions, and strictly adhere to stop losses,” Kothari said.
Bank Nifty
In Bank Nifty, Kothari had previously mentioned that a breakout above 56,000 could trigger a sharp move of 1,500–2,000 points. Post the breakout, the index did rally towards 57,600 as expected.
“However, the daily chart has now formed a bearish engulfing pattern, indicating caution at higher levels. For further upside, a decisive close above 57,600 is necessary. Even then, the 58,000–58,500 zone poses a significant hurdle, being a major long-term trendline resistance — crossing this level won’t be easy,” he said.
On the downside, a slip back below 56,000 could invalidate the recent breakout and potentially trap bulls, leading to a corrective decline, Kothari added.
Mehul Kothari’s stock recommendations
Regarding stocks to buy under ₹200, Mehul Kothari of Anand Rathi recommended buying these three stocks: Trident, Aditya Birla Fashion and Retail and Lemon Tree.
1. Trident: Buy near ₹31; target price ₹34; stop loss ₹29
2. Aditya Birla Fashion and Retail: Buy near 77; target price ₹82; stop loss ₹74
3. Lemon Tree: Buy near ₹135; target price ₹147; stop loss ₹133
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.
