Following the hawkish outlook from the US Federal Reserve on interest rates and continued selling by Foreign Institutional Investors (FIIs), the Indian stock market snapped its four-week winning streak last week. The key benchmark indices faced significant declines, erasing the gains accumulated over the past month. The Nifty 50 index fell from 24,768 to 23,587, losing 1,181 points, while the BSE Sensex dropped from 82,133 to 78,041, losing over 4,000 points. Similarly, the Nifty Bank index plunged from 53,583 to 50,759, recording a loss of 2,824 points.
In this market correction, the Nifty 50 index broke below its 200-day exponential moving average (DEMA) support at 23,800, boosting bearish sentiment. The index is now approaching its recent swing low of 23,250, and investors are closely watching whether this support will hold or if the index will hit a new low.
Stock Market Outlook for the Coming Week
Aditya Gaggar, Director of Progressive Shares, provided an outlook on the Indian stock market, stating, “The market has seen relentless selling due to borrowed pessimism from global cues, and the index has formed a strong bearish candle on the weekly chart. However, on the daily chart, a potential bullish pattern (Advanced Harmonic Cypher) has emerged, though it is yet to be confirmed. If sentiment improves in the coming week, the index could reclaim the psychological level of 24,000. On the other hand, if the bearish trend continues, the Nifty may slip to 23,350. The Bank Nifty is nearing its long-term trendline and 200-DEMA support. A reversal could push the Bank Nifty higher to 51,800, while a break below 50,500 could drag it further down to 50,000.”
Small-Cap Stocks to Buy Under ₹100
Despite the market turbulence, experts are recommending a cautious approach and suggest considering small-cap stocks under ₹100. Here are some stocks to watch:
Sugandha Sachdeva’s Picks:
- Shree Renuka Sugars
Buy at ₹38.70, Target ₹43.80, Stop Loss ₹36.30 - Fedders Holding
Buy at ₹76, Target ₹80.50, Stop Loss ₹74
Anshul Jain’s Picks: 3. AMJ Land Holdings
Buy at ₹70.30, Target ₹100, Stop Loss ₹60
- VIP Clothing
Buy at ₹45.50, Target ₹70, Stop Loss ₹40
Mahesh M Ojha’s Picks: 5. Network 18
Buy at ₹73 to ₹74.50, Target ₹75, ₹78, ₹80, Stop Loss ₹71.80
- Jain Irrigation Systems
Buy at ₹68 to ₹69.50, Target ₹72, ₹75, ₹78, Stop Loss ₹66
Despite the ongoing volatility in the market, these small-cap stocks under ₹100 could offer growth potential for investors willing to take a calculated risk in the current market environment. However, investors should exercise caution and consider their risk tolerance before making any decisions.
