Buy or sell stocks: The Indian stock market showcased a resilient move last week, with every dip being bought into. The key benchmark indices extended their upward trajectory for the second consecutive week, achieving a record weekly closure for the current year. Amid broader participation and decoupling from global jitters, the index revealed inherent strength and settled the week around the 26,070 zone, achieving a 0.61% gain.
Stock market next week
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment is positive as the Nifty 50 index is above the 26,000 mark. The Choice Broking expert stated that the 50-stock index has established a crucial support level at 25,800. Breaking below this level would weaken market sentiment. On the upper side, the key index is facing a hurdle at 26,200. Breaking above this resistance on a closing basis would mean the index is heading towards 26,700 in the near term.
Speaking on the outlook of the Indian stock market, Sumeet Bagadia said, "The Indian stock market sentiment is positive as the Nifty 50 index is above 26,000 despite profit-booking trigger on Friday. The index has found crucial support at 25,800 and is facing minor resistance at 26,200. Breaking above 26,200 would strengthen market sentiment, and the Nifty 50 index would likely reach 26,700 soon. On breaking below 25,800 would weaken the market sentiment, and the 50-stock index may try to touch the 25,350 levels."
Stocks to buy on Monday
Regarding buy-or-sell stocks for Monday, Sumeet Bagadia recommended these three stocks to buy: Maruti Suzuki, IndiGo, and ITC.
1] Maruti Suzuki: Buy at ₹15977, Target ₹17250, Stop Loss ₹15300.
Maruti's share price is currently trading around ₹15,977 and continues to move in a long-term uptrend. Recently, the stock witnessed a mild retracement and consolidated near the 50-day EMA, where it found strong buying interest. This support zone has helped the stock resume its upward movement, indicating the potential for further upside momentum. The price structure shows a continuation of the broader bullish trend, supported by consistent higher lows and renewed strength.
The stock is trading above its key 20, 50, and 200-day EMAs, reaffirming a robust bullish bias and strong underlying sentiment. RSI is currently at 56.70, having bounced back from the oversold zone, suggesting improving momentum and room for further upside.
Traders may consider buying Maruti shares at the current level of ₹15,977 with a stop-loss at ₹15,300. On the upside, a sustained move could take the stock toward the ₹17,250 mark, supported by strong trend continuation.
2] IndiGo: Buy at ₹5843.50, Target ₹6300, Stop Loss ₹5600.
IndiGo's share price is currently trading around ₹5,843.50 and continues to maintain its long-term uptrend. After a brief retracement, the stock has been consolidating within a sideways range, indicating healthy price digestion before the next move. On the upside, the IndiGo share price is facing a falling trendline resistance near ₹5,850 and is now on the verge of a breakout. A decisive break and sustained move above this level would signal renewed bullish momentum, paving the way for further upside.
On the downside, the stock is taking strong support around ₹5,600, where noticeable accumulation highlights active buying interest. IndiGo's share price remains comfortably above its key 20-, 50-, and 200-day EMAs, reaffirming the broader bullish trend. The RSI at 56.79 reflects improving momentum with room for further upward movement.
Traders may consider buying at current levels with a stop-loss of ₹5,600 for a target of ₹6,300, provided that appropriate risk management measures are in place.
3] ITC: Buy at ₹407.85, Target ₹440, Stop Loss ₹390.
ITC's share price is currently trading around ₹407.85 and is consolidating into a broader range, forming a symmetrical triangle pattern on the weekly chart. The stock is now approaching the verge of a breakout from this pattern, supported by rising volumes near its strong support zone, indicating renewed bullish interest. On the upside, the ITC share is facing immediate resistance in the ₹410 to ₹415 zone, which also aligns with the 100-week EMA. A decisive break and sustained move above this zone would confirm a trend reversal and signal further upside potential.
On the downside, substantial accumulation is visible near the ₹400 level, acting as reliable support. The stock remains above the 200 EMA, with the EMA structure continuing to slope upward, reinforcing a positive long-term outlook. RSI at 46.54 on the weekly chart is showing signs of emerging strength.
Traders may consider buying around current levels with a stop loss of ₹390 for a target of ₹440, provided appropriate risk management is followed.