Indian Stock Market Witnesses Volatility: Recovery Seen in Mid-Cap and Small-Cap Stocks
After a sharp recovery on Thursday, the Indian stock market once again slipped into the weak zone on Friday. However, bottom fishing was witnessed in the mid-cap and small-cap stocks as the indices registered a sharp recovery ahead of the market close. The Nifty 50 index ended 123 points lower but above 22,000 levels. The BSE Sensex ended 453 points down at the 72,643 mark whereas the Bank Nifty index dipped 195 points south at the 46,594 mark. In the broad market, the small-cap index ended higher by 0.25 percent while the mid-cap index finished 0.51 percent down.
Stock market expert Sumeet Bagadia, Executive Director at Choice Broking, believes that despite the Indian stock market ending lower on Friday, a sharp recovery witnessed across indices has set the momentum for next week. Bagadia stated that the small-cap index closing in green after losing over 1.50 percent at one point during Friday deals may set the recovery momentum on Monday. He also mentioned that the Nifty 50 index has remained in the 21,900 to 22,300 range despite high volatility in the Indian market.
Bagadia recommended three buy or sell stocks for the upcoming week – Bajaj Finance, Bharti Airtel, and HDFC Life. For Bajaj Finance, he suggested buying at ₹6514 with a target of ₹7000 and a stop loss at ₹6275. The stock has shown signs of potential reversal and a strong bullish trend, with key resistance levels at ₹6550 and ₹6800. For Bharti Airtel, the recommendation was to buy at ₹1220 with a target of ₹1300 and a stop loss at ₹1164. The stock has broken out of a rounding bottom pattern and is showing bullish momentum. Lastly, for HDFC Life, the suggestion was to buy at ₹632.35 with a target of ₹675 and a stop loss at ₹605. The stock has rebounded from strong support levels and is trading above key moving averages.
Investors are advised to consider these recommendations along with their own research and consult with certified experts before making any investment decisions. It is crucial to implement sound risk management strategies to navigate potential market fluctuations effectively.
