The Nifty 50 index finished at 22,421, marking a weekly loss for the eighth straight session. Sumeet Bagadia said, “The short-term structure continues to show weakness.” Amid this market sell-off, the expert recommended buying HDFC Life, Cummins India, and CG Power. Investors now watch the 22,200 support level for future trends.
Sumeet Bagadia's stock/share recommendations: The key benchmark indices of the Indian stock market continued to bear the brunt of sharp foreign fund outflows and rising US bond yields amid the raging conflict in the Middle East. Investors are also perturbed by elevated crude oil prices and the resultant decline in the rupee against the dollar, leading to a broad market sell-off in domestic equities, although IT shares bucked the downward trend after the recent correction.
The Nifty 50 index finished at 22,421, logging a weekly loss for the eighth straight session, whereas the BSE Sensex fell nearly 2000 points. The Bank Nifty index finished at 54,450. All three key benchmark indices witnessed strong selling throughout the truncated week.
Sumeet Bagadia on stock market outlook
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market bias has further weakened, as the Nifty 50 index is approaching its near-term support at 22,200. Going down memory lane, Sumeet Bagadia said that, in 2008, the Nifty 50 declined for seven consecutive weeks before witnessing a five-week positive move.
Speaking on the outlook for the Nifty 50 index, Sumeet Bagadia said, “The short-term structure continues to show weakness, with sustained selling pressure over the last eight weeks keeping the broader market under pressure. The index is currently holding around the 22,400 zone, but a sustained move above 22,600 would be important for a stronger recovery.”
The Choice Broking expert said that if the 50-stock index closes above 22,600 for two consecutive sessions, a stronger pullback could be expected. Historically, in 2008, Nifty declined for seven consecutive weeks before witnessing a five-week positive move. Immediate support is seen at 22,100–22,200, while resistance is at 22,600/22,800.
On the outlook for the Bank Nifty index, Bagadia said, “The setup currently reflects a clear sell-on-rise structure. The critical support zone at 53,843 holds significant importance for the ongoing trend. A decisive close below 53,843 may open the door for a further decline towards 53,000–52,800. On the other hand, if this support holds firm, the index could attempt a rebound towards 55,000–55,200 in the coming sessions.”
Sumeet Bagadia shares recommendations | Three stocks to buy
Regarding stocks to buy on Monday, Sumeet Bagadia recommended buying these three shares: HDFC Life, Cummins India, and CG Power.
1] HDFC Life: Buy at ₹534 | Target ₹586 | Stop Loss ₹508.
HDFC Life shares are showing signs of a structural bottom reversal after confirming a double-bottom base near its swing low of ₹508.70, closing at ₹534. On the daily timeframe, the counter has arrested its downward trend and printed a strong bullish candle, reflecting vigorous dip-buying and accumulation at major support levels.
2] Cummins India: Buy at ₹4860 | Target ₹5350 | Stop Loss ₹4615.
Cummins India shares have staged a sharp technical bounce from the lower trendline of its well-defined downward-sloping parallel channel, closing the session at around ₹4,860. On the daily timeframe, the stock has been trading within this descending channel since its peak at ₹6,100.00, and the recent price action indicates strong demand emerging near the channel's lower boundary and key support floor. The stock has formed a bullish reversal candle at these extremes and is now advancing toward the channel's median line and immediate dynamic hurdles marked by the 200 EMA ( ₹4,969.30) and the 20 EMA ( ₹4,981.80).
3] CG Power: Buy at ₹879 | Target ₹690 | Stop Loss ₹838.
CG Power shares have resumed their upward trajectory after taking strong support along an ascending trend line and their 100 EMA, closing the session with a solid gain at ₹879. On the daily timeframe, the counter has been consistently forming higher lows along this rising support trend line since August, confirming strong underlying accumulation on declines. The recent candle demonstrates sharp dip-buying straight from the ₹860 support mark, pushing the price back above the 100 EMA and setting it up to challenge the clustered resistance of the 20 EMA and 50 EMA.