The Indian stock market witnessed a significant surge on Friday, following positive global market sentiments and easing fears of a US recession. The Nifty 50 index soared by 247 points to 24,364, the BSE Sensex jumped by 819 points to 79,705, and the Bank Nifty index closed 325 points higher at 50,482. Despite a slight decrease in cash market volumes on the NSE compared to the previous day, the mid-cap index outperformed the Nifty 50 index, with an advance-decline ratio of 1.58:1.
Sumeet Bagadia, Executive Director at Choice Broking, shared his insights on the market outlook for the upcoming week. Bagadia highlighted that the Nifty 50 index managed to hold above the crucial support level of 23,900, indicating potential for further upside in the coming sessions. He noted that the index faces resistance in the 24,350 to 24,400 range, and a breakout above this level could propel it towards the 24,800 mark.
Bagadia also provided recommendations for three stocks to buy on Monday: Reliance Industries Ltd (RIL), Tata Motors, and Tech Mahindra (TechM).
1. Reliance Industries: Bagadia suggested buying RIL at ₹2948.60, with a target of ₹3100 and a stop loss at ₹2865. He pointed out that RIL’s share price has established a strong support at ₹2865 and is trading above its long-term moving average, indicating bullish momentum. With resistance at ₹3000, a breakout could lead to further gains towards the target of ₹3100.
2. Tata Motors: Bagadia recommended buying Tata Motors at ₹1068.10, with a target of ₹1155 and a stop loss at ₹1025. He highlighted the stock’s bullish momentum, supported by a recent breakout above key resistance levels and strong trading volumes. Tata Motors‘ share price is trading above multiple moving averages, suggesting a positive outlook for potential upside.
3. Tech Mahindra (TechM): Bagadia advised buying TechM at ₹1506.70, with a target of ₹1650 and a stop loss at ₹1430. He noted that TechM’s share price rebounded from a critical support level and is trading above key moving averages, indicating strength. A breakout above resistance at ₹1515 could trigger further upward momentum, presenting an opportunity for investors.
It is important to note that the views and recommendations provided by individual analysts or broking companies, such as Sumeet Bagadia, are not endorsed by Mint. Investors are advised to consult certified experts before making any investment decisions.
In conclusion, the Indian stock market showed resilience and positive momentum on Friday, with potential opportunities for investors in select stocks. Keeping a close watch on key support and resistance levels, as well as market developments, can help investors make informed decisions in a dynamic market environment.