Buy or sell stocks: The key benchmark indices of the Indian stock market ended the week on a weak note, pressured by negative global cues and escalating geopolitical tensions following the latest developments between the USA and Iran. The Nifty 50 declined by nearly 3% to close at 24,450.
Sectorally, the market witnessed broad-based selling, with Oil & Gas, Realty, Cement, and Automobile stocks tumbling more than 5% each during the week. Overall sectoral performance remained under pressure as investors preferred profit-taking amid rising uncertainty over the US-Iran war. The chemical sector, however, stood out as the only segment to close in the green, gaining nearly 3% despite the broader market weakness.
Outlook for the Indian stock market today
Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, believes the Indian stock market is in a weak bias, as the Nifty 50 index has decisively broken below the 200-DEMA. A decisive and sustained close below this level could intensify selling pressure.
Outlook for the Nifty 50 index
Speaking on the outlook of the Nifty 50 index, Ganesh Dongre of Anand Rathi said, “The index has already approached the important support zone of 24,200–24,500 and is currently positioned near its monthly channel support. On the monthly chart, the index continues to hold its long-term trendline support in the 24,000–24,300 zone. A confirmed break below this region could significantly weaken the market structure and reinforce a bearish medium-term outlook.”
Dongre said the 50-stock index faces a strong hurdle around 25,300, which coincides with the 200-day EMA. Therefore, resistance is likely to emerge in the 25,000–25,300 zone during the upcoming week. He said that derivative data also suggests a range-bound structure, with significant Call open interest placed at 25,000 and 25,500, forming a strong resistance band. Meanwhile, substantial Put open interest at 24,200 and 23,500 indicates a solid support base.
“Based on the current options positioning, the NIFTY is likely to trade within the 23,800–25,200 range in the coming weeks unless a decisive breakout occurs,” Ganesh Dongre added.
Outlook for the Bank Nifty index
The Anand Rathi expert said the Nifty Bank index is facing immediate resistance near 59,000, where the highest Call open interest is concentrated, while the 56,000 level is expected to act as immediate support. A sustained move beyond either side of this range could determine the next directional trend for the banking index.
“Despite short-term volatility driven by global and geopolitical developments, the broader structure remains relatively constructive unless key supports are breached. The market appears range-bound with a cautiously positive bias, favouring a buy-on-dips strategy, selective stock accumulation, and close monitoring of global cues and geopolitical risks,” Ganesh Dongre of Anand Rathi added.
Ganesh Dongre’s stock recommendations today
Regarding stocks to buy on Monday, Ganesh Dongre of Anand Rathi recommended these three buy-or-sell stocks: Vedanta, Cipla, and Indian Bank.
1] Vedanta: Buy at ₹720 to ₹725, Target ₹760, Stop Loss ₹700;
2] Cipla: Buy at ₹1320 to ₹1330, Target ₹1380, Stop Loss ₹1290; and
3] Indian Bank: Buy at ₹930 to ₹940, Target ₹990, Stop Loss ₹900.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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