Sumeet Bagadia’s stock recommendations for Monday: The key benchmark indices of the Indian stock market remained volatile during the week, with the Nifty 50 index extending its weekly losing streak to seven consecutive weeks, marking its longest such losing run in six years. The benchmark came under significant selling pressure on Thursday, when the Nifty 50 index declined 1.64%, before recovering modestly on Friday amid value buying. Despite the late-week recovery, the 50-stock index closed the week down around 0.88% from the previous Friday’s close.
Red Flag | US 10-year bond yield
The global bond market continued to add pressure, with the US 10-year Treasury yield moving above 5.10% during the week. Elevated yields continue to tighten global financial conditions and can reduce the relative attractiveness of emerging-market assets. The combination of higher oil prices, elevated yields and geopolitical uncertainty contributed to the sharp sell-off seen during the middle of the week.
FII-DII data
Foreign institutional selling has intensified significantly compared with previous weeks and has become a major headwind for domestic equities. On a month-to-date basis through September 25, FIIs have recorded net outflows of approximately ₹18,531 crore, while DIIs have recorded strong net purchases of approximately ₹52,617 crore.
Stock market outlook
Sumeet Bagadia, Executive Director at Choice Broking, believes the outlook for the Indian stock market is sideways to bearish. The Eliot Wave expert said the crucial support for the Nifty 50 index is at 22,900–23,000, with resistance at 23,300–23,370.
Speaking on the outlook for the Nifty 50 index, Sumeet Bagadia said, “A sustained move above 23,370 could provide room for a recovery towards higher levels, whereas a decisive break below 22,900 may resume the broader selling pressure. The expected trading range for the next session is 22,900–23,370.”
On the outlook for the Bank Nifty index, Sumeet Bagadia said, “For the near term, 55,000–55,200 will remain the key support zone, while 55,750–56,000 is likely to act as the immediate resistance area. A sustained move above 56,000 could improve the short-term structure, while a break below 55,000 may increase selling pressure. Until either side of the range is decisively breached, the index is likely to remain range-bound.”
Sumeet Bagadia’s share recommendations
Regarding stocks to buy for the short-term, Sumeet Bagadia recommended these three stocks: Mahindra And Mahindra, Asian Paints, and HCL Technologies.
1] Mahindra And Mahindra: Buy at ₹3035 | Target ₹3325 | Stop Loss ₹2890.
Mahindra and Mahindra share price is attempting a technical rebound after testing and defending its critical horizontal base and swing low support near the ₹2,896 to ₹2,900 mark, with the stock closing at ₹3,035.00. On the daily chart, the stock has arrested its steep correction from the ₹3,550 zone and printed a bullish candle with a firm green close, signalling emerging buying interest at deep value levels.
2] Asian Paints: Buy at ₹2444 | Target ₹2652 | Stop Loss ₹2340.
The stock is attempting a pullback rebound after forming a solid double-bottom base near the ₹2,390 to ₹2,400 support zone, closing around ₹2,444.00. On the daily chart, the counter has arrested its corrective slide from the swing high of ₹2,914.50 and formed a bullish reversal candlestick pattern near its demand zone, reflecting dip accumulation. The price is now pushing upward to challenge its immediate overhead resistance at the short-term 20 EMA near ₹2,490.10.
3] HCL Technologies: Buy at ₹1258 | Target ₹1380 | Stop Loss ₹1195.
HCL Technologies share price is attempting a base formation after defending its recent swing low near ₹1,200, with the stock closing around ₹1,258. On the daily chart, the price has entered a consolidation phase following a sharp pullback from recent swing highs near ₹1,379.80. It is currently testing an overhead cluster of short- to medium-term exponential moving averages, where a decisive close above could trigger a fresh leg of bullish recovery.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
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