In a shift from recent trends, the Indian stock market ended its six-session winning streak on Friday. The Nifty 50 index closed down 37 points at 26,178, while the BSE Sensex dropped 264 points to finish at 85,571. The Nifty Bank index experienced a significant decline, losing 541 points to settle at 53,834. Notably, cash market volumes on the NSE surged by 36.2%, partially due to Nifty rebalancing activities. Despite these losses, broad market indices showed slight positivity, with an advance-decline ratio of 0.99:1.
Bullish Outlook Despite Recent Declines
Sumeet Bagadia, Executive Director at Choice Broking, remains optimistic about the Indian stock market’s trajectory. He predicts that the Nifty 50 index could reach 26,900, urging investors to adopt a buy-on-dips strategy as long as the index stays above the critical level of 26,000. He highlighted that essential support for the Nifty 50 is positioned at 25,800.
Recommended Stocks for Monday
Bagadia has identified three stocks as potential buys for Monday:
Eicher Motors:
Buy at: ₹5,062.60
Target: ₹5,300
Stop Loss: ₹4,900
Eicher Motors’ recent chart analysis indicates a promising upward trend, with the stock poised to break out from the ₹4,900 to ₹5,000 range. A successful move above this threshold could lead to significant price gains.
Pidilite Industries:
Buy at: ₹3,363.45
Target: ₹3,555
Stop Loss: ₹3,250
Pidilite Industries has shown considerable strength and positive momentum, particularly in recent trading sessions. Its current price stability above the 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs) reflects a solid bullish trend. The stock’s potential upward movement is supported by a rising wedge pattern on weekly charts.
Cipla:
Buy at: ₹1,672.50
Target: ₹1,777
Stop Loss: ₹1,616
Cipla’s share price has risen notably, backed by strong momentum and technical indicators. The stock’s performance above key EMA levels strengthens its bullish outlook. A decisive break above ₹1,699 could further propel it toward the ₹1,777 target.
Investors are advised to consider these recommendations carefully and implement risk management strategies, including trailing stop losses, to safeguard their positions in a fluctuating market.
Related topics: