The Indian stock market exhibited a sideways trend throughout the week as the Nifty 50 index struggled to breach its 200-DEMA resistance level at 23,850. On Friday, the Nifty 50 closed at 23,832, gaining 82 points, while the BSE Sensex ended 259 points higher at 78,732. The Bank Nifty index added 162 points, closing at 51,333.
Mid-Cap and Small-Cap Performance
Mid-cap and small-cap indices saw subdued movements. While the Nifty Mid-cap 100 dipped by 0.26%, the Nifty Small-cap Index registered a modest gain of 0.15%. Notably, the advance-decline ratio on the BSE stood at 0.96, reflecting a declining trend for the eighth consecutive day.
Sectoral Insights
Among the sectoral indices, Nifty Pharma, Auto, and Healthcare emerged as top gainers, while Nifty Metal, PSU Banks, and Oil & Gas faced losses.
Market Outlook and Expert Analysis
Sumeet Bagadia, Executive Director at Choice Broking, highlights that the market remains range-bound as Nifty 50 struggles to surpass the 23,850 resistance. He pinpointed immediate support at 23,500, with a crucial support level at 23,200. A breakout beyond either side of this range could determine the next bullish or bearish trend.
Top Stock Picks for Next Week
Bagadia recommends three stocks to watch for the upcoming week, based on their technical performance:
1. Can Fin Homes
- Buy Price: ₹750.55
- Target: ₹810
- Stop Loss: ₹720
Can Fin Homes is showing signs of recovery from its support level of ₹716. Although still below major moving averages (20-day, 50-day, and 100-day EMA), a close above these levels could signal a turnaround. If the stock breaches the ₹810 target, it would indicate a stronger recovery.
2. Dr Reddy’s Laboratories
- Buy Price: ₹1389.45
- Target: ₹1500
- Stop Loss: ₹1340
Dr Reddy’s Laboratories is witnessing renewed buying momentum, supported by strong volumes. The stock is positioned above short, medium, and long-term EMAs, reflecting bullish momentum. A breakout above the ₹1400 resistance could propel the stock towards the ₹1500 target.
3. Mahindra & Mahindra (M&M)
- Buy Price: ₹3049.45
- Target: ₹3300
- Stop Loss: ₹2900
M&M shares are consolidating, with strong support at ₹2900 (100-day EMA). A breakout above ₹3200 could lead to a rally towards ₹3300. Consistent trading volume and price action above the VWAP of ₹3030 further indicate potential recovery.
Key Takeaways for Investors
- Focus on technically strong stocks for short-term gains.
- Monitor key resistance and support levels for trend confirmation.
- Use stop losses effectively to manage risk.
Disclaimer: The views and stock recommendations in this article are from analysts and brokerage firms. Investors should conduct their due diligence or consult financial advisors before making investment decisions.
