Sumeet Bagadia of Choice Broking suggests the Nifty 50 index may witness further consolidation after its sharp rally. He said, "The index may witness further consolidation after its sharp rally, with sustained holding above 25,000 being important to preserve the positive broader structure." Investors should watch these key support levels.
The Nifty 50 index may witness further consolidation after its sharp rally, says Sumeet Bagadia of Choice Broking.
Stocks to buy | Shares to buy | Sumeet Bagadia stock recommendations: The key benchmark indices of the Indian stock market caught their breath after last week's blistering rally, trading in a narrow range with a positive bias through a holiday-shortened week. Steady foreign inflows and better-than-expected Q2 earnings, which have raised hopes of upgrades to FY27 estimates, absorbed bouts of profit booking, and the benchmarks closed the week marginally higher. Inflation, however, returned to centre stage.
A hotter-than-expected U.S. CPI print cemented bets on a December Fed hike, while hawkish Fed remarks pushed global yields higher. At home, retail inflation jumped to a two-year high, breaching the RBI's upper tolerance limit as food prices surged. Fears of further tightening snapped a three-session winning run at the end of the week.
Stock market prediction for next week
Sumeet Bagadia, Executive Director at Choice Broking believes the bias for the Indian stock market is positive, until the Nifty 50 index is above 25,000. The Choice Broking expert said that daily candle reflects profit booking near higher levels, but the 25,000 support for the Nifty 50 index may remain sacrosanct.
Nifty 50 prediction
On the outlook for the Nifty 50 index, Sumeet Bagadia said, the 50-stock index has immediate support at 25,000-25,080, while resistance remains at 25,250-25,400. RSI stands at 75.22, above its average of 66.75, indicating that momentum remains strong but stretched.
"Monthly PCR at 1.13 suggests a constructive derivatives setup, while India VIX declined 5.07% to 15.7750, indicating easing volatility. The index may witness further consolidation after its sharp rally, with sustained holding above 25,000 being important to preserve the positive broader structure," the Choice Broking expert said.
Bank Nifty outlook
On the outlook for the Bank Nifty index, Sumeet Bagadia said, the key benchmark index has immediate support at 60,400-60,750, while resistance is placed at 61,300-61,500. RSI remains elevated at 75.70, above its average of 60.91, highlighting strong underlying momentum despite the latest decline.
"The lower shadow on the daily candle indicates some buying interest at lower levels; however, the index needs to reclaim the resistance zone to regain upward traction. Until then, consolidation and intermittent profit booking may continue," he added.
Stocks to buy | Sumeet Bagadia stock recommendations today
Regarding stocks to buy, Sumeet Bagadia of Choice Broking recommended buying these three shares: Bharti Airtel, Bajaj Finance, and Nestle India.
1] Bharti Airtel: Buy at ₹2106 | Target ₹2340 | Stop-loss ₹1990.
Bharti Airtel shares are exhibiting strong trend continuation, consolidating constructively near its upper supply band after a sharp V-shaped recovery from the ₹1,726 zone, closing the session firmly at ₹2,106.00. The price action reflects healthy absorption of profit-booking, with the counter trading comfortably above all its short- and long-term exponential moving averages (20, 50, 100, and 200 EMAs), confirming a robust bullish alignment.
2] Bajaj Finance: Buy at ₹1117 | Target ₹1260 | Stop-loss ₹1045.
Bajaj Finance shares are showcasing strong bullish momentum, staging a decisive breakout above its intermediate resistance band around ₹1,100 after a steep V-shaped recovery from the ₹905 support zone, closing the session firmly at ₹1,117.00. On the daily chart, the stock has formed a constructive bullish flag following an impulsive surge, printing a bullish candle that absorbs intraday dips and clears recent swing hurdles. The counter is trading comfortably above all its short- and long-term exponential moving averages (20, 50, 100, and 200 EMAs), with a fresh golden-cross alignment confirming a robust structural uptrend.
3] Nestle India: Buy at ₹1263 | Target ₹1400 | Stop-loss ₹1195.
Nestle India shares are holding firm above its short-term dynamic support after staging an energetic pullback recovery from the ₹1,147.40 swing low, closing the session constructively at ₹1,263.20. On the daily chart, the counter has carved out a higher-low structure following an extended downward slide from its peak near ₹1,553.00, printing a bullish doji/pin-bar style candle right atop the rising 20 EMA. This price action signals steady absorption of supply and renewed dip-buying interest as the stock gears up to challenge its immediate overhead resistance near the 50 EMA.