Buy or Sell Market Update: Indian Stock Market Faces Volatility Amid Weak Global Sentiments
Following weak global market sentiments, the Indian stock market snapped its five-day winning streak on Friday. The Nifty 50 index plummeted 311 points, closing at 24,699, while the BSE Sensex tumbled 885 points, ending at 80,981. The Bank Nifty index also corrected 226 points, finishing at 51,337. This downturn was triggered by higher jobless claim data in the US, leading to a bloodbath on Wall Street on Friday.
Sumeet Bagadia, Executive Director at Choice Broking, commented that global cues have weakened further post the US stock market decline. He advised investors to stay vigilant about key levels as the Indian stock market is expected to remain highly volatile on Monday. Bagadia highlighted that the Nifty has crucial support at 24,400. A bounce-back is possible if this support holds, but breaching this level decisively could weaken market sentiment on Dalal Street.
Stock Recommendations by Sumeet Bagadia
Sumeet Bagadia recommended three stocks for Monday: Divi’s Laboratories, Nestle India, and Naukri.
Table of Contents
1. Divi’s Laboratories (Buy at ₹4991.25, Target ₹5370, Stop Loss ₹4780)
The daily chart for Divi’s Lab shares indicates a positive trend with higher highs and lows, forming a solid bullish candle at ₹4991.25. This bullish sentiment is supported by notable trading volumes, suggesting strong buying interest. If the stock stays above ₹4980, it is likely to move towards the ₹5370 target, continuing the uptrend.
The Relative Strength Index (RSI) stands at 75.18 and is trending upward, indicating increased buying momentum. Divi’s Lab shares are trading above key moving averages, reinforcing the bullish trend.
Recommendation: Buy at ₹4991.25, with potential dips up to ₹4880 considered buying opportunities. Set a stop-loss at ₹4780, with an upside target of ₹5370
2. Nestle India (Buy at ₹2495.10, Target ₹2650, Stop Loss ₹2410)
Nestle India’s shares are currently trading at ₹2495.10 in a consolidation phase, finding support near its long-term (200-day) EMA with decent trading volumes. This support level suggests potential for a rebound towards upside resistance. If the stock maintains its position above this support, it could move towards a target of ₹2650.
The RSI is at 42.85, indicating a moderate recovery and gaining strength. A minor hurdle at ₹2530 aligns with short-term and medium-term EMA levels. Sustaining above these levels could lead to further upward movement.
Recommendation: Buy at ₹2495.10 with a stop loss at ₹2410 and a target of ₹2650.
3. Naukri (Buy at ₹7220.50, Target ₹7800, Stop Loss ₹6925)
Naukri’s shares have formed a bullish engulfing candle on the daily chart, signaling a continuation of the uptrend. The stock has broken out above its recent high with strong trading volumes, reinforcing bullish momentum. Naukri shares have also bounced off their short-term (20-day) EMA, suggesting the uptrend will continue. If the price remains above ₹7250, it could advance towards a target of ₹7800.
The RSI is at 63.44, with a positive crossover, indicating increased buying momentum. Additionally, Naukri shares are trading above their medium-term (50-day) EMA, reinforcing the bullish outlook.
Recommendation: Buy at ₹7220.50 with a stop loss at ₹6925 and a target of ₹7800.