Buy or sell stocks: Following weak global cues after Trump’s tariff bombshell on Thursday night, the Indian stock market ended lower on Friday. The Nifty 50 index finished southward for the fifth successive week, its prolonged losing streak since the week ending August 25, 2023. This selling was across segments, as the BSE Sensex and the Bank Nifty index witnessed selling pressure in the previous week, while the small-cap and mid-cap indices ended more than 2% lower last week.
Stock market next week
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market is trading cautiously after the US administration’s imposition of a 25% tariff. The Choice Broking expert said the Nifty 50 index is in the 24,500 to 24,950 range. A bullish or bearish trend can be assumed on the breakage of either side of this range.
Speaking on the outlook of the Nifty 50 index, Sumeet Bagadia said, “The Indian stock market sentiment is cautious as the Nifty 50 index is trading in the 24,500 to 24,850 range. The key benchmark index has crucial support placed at 24,500, whereas it is facing resistance at the 50-DEMA of 24,900 to 24,950. A bullish or bearish trend can be assimilated on the breakage of either side of this range.”
Sumeet Bagadia’s stock recommendations
The Choice Broking expert suggested investors look at stocks that look strong on the technical chart and recommended buying ITC, Asian Paints, and Metropolis Healthcare next week.
1] ITC: Buy at ₹416.45, Target ₹450, Stop Loss ₹400.
ITC’s share price is currently trading at ₹416.45 and has witnessed a decline of nearly 22% from its recent highs, followed by a prolonged consolidation phase. The stock has recently formed a Falling Wedge pattern on the daily chart—typically a bullish reversal setup that indicates a potential breakout on the upside. ITC’s share price now appears to be on the verge of breaking out of this formation, supported by consistent trading volumes that reflect steady accumulation at lower levels.
A sustained move above the ₹425 mark would confirm the breakout, potentially triggering a trend reversal and opening up room for a move toward higher price levels. This breakout would also signal a shift in sentiment from consolidation to strength.
From a momentum perspective, the Relative Strength Index (RSI) stands at 51.31 and has recently given a positive crossover, moving upward and suggesting improving bullish momentum. Technically, the stock is hovering between its short-term and medium-term EMAs. A successful hold above these levels, followed by a sustained move above the long-term EMA, would further strengthen the bullish outlook.
Given the encouraging technical pattern, steady volumes, and improving momentum, traders may consider buying ITC shares at the current market price of ₹416.45, with a stop-loss at ₹400 to limit downside risk. A breakout above ₹425 could pave the way for an upside toward ₹450 in the short to medium term, offering a favourable risk-reward opportunity.
2] Asian Paints: Buy at ₹2431, Target ₹2650, Stop Loss ₹2320.
Asian Paints’ share trades at ₹2,431 and moves within a broad consolidation range near its lower levels. This extended consolidation phase, supported by steady trading volumes, indicates accumulation and growing investor interest at these price zones. The stock has recently shown signs of recovery, bouncing from its short-term and medium-term exponential moving averages (EMAs). While it has attempted to cross above its long-term EMA, it has yet to sustain a close above that level—making a decisive breakout above it crucial for further strength.
A sustained move above the ₹2,500 level could confirm bullish momentum, potentially triggering a fresh upward leg in the price action. This breakout would signify the end of the current range-bound behaviour and open the door for further gains toward higher levels.
From a momentum perspective, the Relative Strength Index (RSI) stands at 59.29 and has recently given a positive crossover, trending upward. This suggests strengthening momentum and increasing bullish sentiment, further supported by price action holding above key EMAs.
Given the constructive chart structure, improving RSI, and substantial volume support, traders may consider buying Asian Paints shares at ₹2,431, with a stop-loss placed at ₹2,320 to manage downside risk. A sustained breakout above ₹2,500 could lead to an upside toward ₹2,650 in the short to medium term, offering an attractive risk-reward setup for positional traders.
3] Metropolis Healthcare: Buy at ₹2037.70, Target ₹2260, Stop Loss ₹1925.
Metropolis Healthcare’s share price is currently trading at ₹2,037.70 and has shown signs of strength after a corrective move from its recent swing high. Following the decline, the stock entered a consolidation phase and witnessed a strong bounce from its demand zone, indicating renewed buying interest at lower levels. Metropolis Healthcare’s share price on the daily chart is forming a Cup & Handle pattern. This bullish continuation formation typically signals the potential for further upward movement once the breakout is confirmed.
A recent spike in trading volumes further validates the accumulation during the handle formation, indicating strong participation. A sustained move above ₹2,100 would confirm the breakout from this bullish setup and could trigger a fresh upward rally, resuming the stock’s prior uptrend.
From a momentum standpoint, the Relative Strength Index (RSI) is at 63.54 and has given a positive crossover, suggesting strong bullish sentiment and further upside potential. Additionally, the stock has retraced towards its short-term EMA and is now comfortably trading above all key moving averages—short-term, medium-term, and long-term—reinforcing the positive outlook.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.