Indian Stock Market Slips Into Sharp Weakness: Nifty 50, Sensex, and Bank Nifty Indexes Plummet
After a range-bound action on Wednesday, the Indian stock market took a sharp downturn on Friday, with the Nifty 50 index nosediving 234 points to close at 22,519, the BSE Sensex crashing 793 points to finish at 74,244, and the Bank Nifty index correcting 422 points to end at 48,564. In the broader market, the small-cap index dipped 0.60 percent, while the mid-cap index went down 0.49 percent.
Stock Market Strategy for Next Week
Sumeet Bagadia, Executive Director at Choice Broking, highlighted that the Nifty 50 index is currently at a crucial support level of 22,500. He warned that if this major support is breached, it could lead to a weakening of market sentiments. On the upside, the index faces a hurdle at the 22,750 to 22,800 zone, with a potential 500 points upside if this resistance is broken.
Stocks to Buy on Monday
Choice Broking recommended three stocks to buy for Monday: Bajaj Auto, Nestle India, and Divi’s Laboratories.
1. Bajaj Auto: Buy at ₹9074, Target ₹9900, Stop Loss ₹8400
Bajaj Auto’s share price is currently trading at ₹9074.15, consolidating above the ₹9000 level with good volume. The stock has shown a pattern of higher highs and higher lows on the daily chart, supported by a rising Relative Strength Index (RSI). The overall trend is bullish, with potential target prices of ₹9600 and ₹9900. Investors are advised to buy on dips around ₹8700 and set a stop-loss at ₹8400.
2. Nestle India: Buy at ₹2536, Target ₹2650, Stop Loss ₹2465
Nestle India’s share price is at ₹2536.20, showing a strong support zone at ₹2465 to ₹2490 levels. The stock has bounced back from these levels and could see a breakthrough above the resistance at ₹2570, targeting ₹2650. Investors can consider buying at the current market price and set a stop-loss at ₹2465 to manage risks.
3. Divi’s Laboratories: Buy at ₹3780, Target ₹4000, Stop Loss ₹3700
Divi’s Lab share price, trading at ₹3779.70, has rebounded from support levels at ₹3700 and is trading above key EMAs. The RSI indicates an upward trend, supporting a target price of ₹4000. Investors can buy at the current price or accumulate at ₹3750 levels, with a stop-loss at ₹3700 for risk management.
In conclusion, these stocks present attractive opportunities for investors, but it is essential to consult with certified experts before making any investment decisions.
