Buy or sell stocks: After a positive start supported by favourable global cues, the Indian stock market witnessed sharp selling on Friday. This was on account of profit booking, which came in as cross-border tensions between India and Pakistan escalated following the terrorist attacks in Pahalgam, Kashmir. The nifty 50 index crashed 207 points and closed at 24,039. The BSE Sensex shed 588 points and finished at 79,212. The Bank Nifty index ended 537 points lower at 54,664. All the sectoral indices, barring Nifty IT, are closed in red. Realty and Financial services indices were the top losers, falling by nearly 3% each.
On the positive side, FII buying continued for the seventh consecutive session with inflows of around ₹8,250 crores on Thursday. Further, news flows indicated some softness in the US-China tariff war, while India is expected to be closer to signing a trade deal with the US. Geo-political developments between India and Pakistan could add volatility to the Indian market over the next few days.
Stock market outlook
Sumeet Bagadia, Executive Director at Choice Broking, believes that the outlook for the Indian stock market has turned cautious. The Nifty 50 Index has closed below the 200-DEMA support of 24,050. The Choice Broking expert said the Nifty 50 index has crucial support at 23,800, which is expected to remain sacrosanct.
“The Indian stock market sentiment got shaken as the Nifty 50 index closed below the 200-DEMA support of 24,050. The 50-stock index has crucial support now placed at 23,800, which is expected to remain sacrosanct. So, one should look at those stocks that look strong in terms of the technical chart pattern,” Bagadia said.
Sumeet Bagadia’s recommended stocks
Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy or sell stocks: Grasim Industries, TCS, and HUL.
1] Grasim Industries: Buy at ₹2734.80, Target ₹3030, Stop Loss ₹2600.
Grasim’s share price is currently trading at ₹2,734.80. After retreating from record-high levels, it recently witnessed a healthy throwback toward its demand zone. The stock has since shown a strong bounce from these lower levels and is now hovering near the upper end of the consolidation range, signalling strength and a potential continuation of the upward trend.
Consistent trading volumes have backed this reversal from the demand zone, adding credibility to the ongoing recovery. A sustained move above the key ₹2,800 mark will be crucial to confirm the breakout and could set the stage for a further rally toward the ₹3,030 target soon.
The Relative Strength Index (RSI) stands at 62.68 and is nearing a positive crossover, which, if confirmed, would signal growing bullish momentum and improving sentiment. From a moving average perspective, GRASIM is trading above all its key EMAs—short-term (20-day), medium-term (50-day), and long-term (200-day)—which reinforces the strength of the ongoing trend and indicates broader support across timeframes.
Given the favourable technical setup and volume confirmation, traders may consider buying Grasim shares at the current market price of ₹2,734.80, with a stop-loss set at ₹2,600 to manage downside risk. As long as the stock sustains above its crucial breakout level of ₹2,800 and maintains momentum, it remains well-positioned to achieve the upside target of ₹3,030 in the short to medium term.
2] TCS: Buy at ₹3448, Target ₹3780, Stop Loss ₹3290.
TCS’s share price is currently trading at ₹3,448 and is showing early signs of a potential trend reversal after witnessing a sharp decline of nearly 32% from its higher levels. The recent bounce from the lower zones has been encouraging, with strength supported by consistent trading volumes indicating renewed buying interest and a shift in sentiment.
The stock has formed a base near the lower levels and is approaching a critical resistance zone. A sustained move above the ₹3,550 mark would confirm the reversal pattern and open the door for a sharp rally towards the ₹3,780 level soon.
The Relative Strength Index (RSI) stands at 50.68 and has strongly reversed from oversold levels. It is trending upward, reflecting improving momentum and signalling the return of bullish sentiment. From a moving average perspective, TCS has rebounded above its short-term EMA and is now approaching its medium-term EMA. A breakout above this level likely leads to a test of the long-term EMA, reinforcing the possibility of a broader trend reversal.
Given the supportive volume profile and strengthening technical indicators, traders may consider buying TCS shares at the current market price of ₹3,448, with a stop-loss at ₹3,290 to manage risk. As long as the stock sustains above key moving averages and maintains upward momentum, it will soon achieve the upside target of ₹3,780.
3] HUL: Buy at ₹2332.20, Target ₹2550, Stop Loss ₹2225.
HUL share price is currently trading at ₹2,332.20 and is consolidating within a wide range near its lower zone after witnessing a significant correction of nearly 30% from its peak levels. Following this decline, the stock has attracted strong buying interest from lower levels, indicating a potential shift in sentiment.
In the recent session, the stock faced some rejection near a nearby hurdle but held above a strong support zone, suggesting resilience and buyer presence at lower levels. A decisive and sustained move above the ₹2,400 mark would confirm a potential reversal and could open the path for a further upside move toward the ₹2,550 target in the near term.
The Relative Strength Index (RSI) is currently at 53.58 and is showing signs of reversal from lower levels, reflecting improving momentum and a shift toward bullish sentiment. From a moving average perspective, HUL shares have faced some resistance at their long-term EMA but are taking support from their short-term and medium-term EMAs, indicating a possible buildup for an upside breakout.
Considering the improving technical setup and strong support at lower levels, traders may buy HUL shares at the current market price of ₹2,332.20, with a stop-loss set at ₹2,225. A sustained move above ₹2,400 could confirm the reversal and push the stock toward its upside target of ₹2,550 in the short to medium term.
Disclaimer: This story is based on exchange filings by Reliance Industries and is for educational purposes only. The views and recommendations above, if any, are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.