The Indian stock market demonstrated remarkable resilience last week, with investors actively purchasing during every market dip. Key benchmark indices continued their upward movement for the second consecutive week, achieving a record weekly closure for the current year. The market showed inherent strength amid broader participation and decoupling from global uncertainties, settling the week around the 26,070 zone with a solid 0.61% gain.
Market Outlook and Key Levels
Sumeet Bagadia, Executive Director at Choice Broking, maintains a positive outlook on the Indian stock market as the Nifty 50 index remains firmly above the 26,000 mark. The expert highlighted that the 50-stock index has established crucial support at 25,800. A break below this level would significantly weaken market sentiment.
On the resistance front, the key index faces a hurdle at 26,200. According to Bagadia, "Breaking above this resistance on a closing basis would mean the index is heading towards 26,700 in the near term." Despite profit-booking triggers on Friday, the overall market sentiment remains optimistic with the index maintaining its position above 26,000.
Top Stock Recommendations for Monday
For investors seeking trading opportunities on Monday, Sumeet Bagadia has identified three promising stocks with clear entry points, targets, and stop-loss levels.
Maruti Suzuki: Riding the Long-Term Uptrend
Maruti Suzuki shares are currently trading around ₹15,977 and continue to move in a sustained long-term uptrend. The stock experienced a mild retracement recently, consolidating near the 50-day EMA where it found strong buying interest. This support zone has helped the stock resume its upward movement, indicating potential for further upside momentum.
The price structure shows 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 robust bullish bias. RSI at 56.70 has bounced back from the oversold zone, suggesting improving momentum.
Trading strategy: Buy at ₹15,977 with stop-loss at ₹15,300 and target price of ₹17,250.
IndiGo: Preparing for Breakout
IndiGo shares are trading around ₹5,843.50, maintaining their long-term uptrend. After a brief retracement, the stock has been consolidating within a sideways range, indicating healthy price digestion before the next move. The stock faces falling trendline resistance near ₹5,850 and is on the verge of a breakout.
A decisive break and sustained move above this level would signal renewed bullish momentum. On the downside, strong support exists around ₹5,600 with noticeable accumulation highlighting active buying interest. The stock remains comfortably above its key moving averages with RSI at 56.79 reflecting improving momentum.
Trading strategy: Buy at current levels with stop-loss of ₹5,600 and target of ₹6,300.
ITC: Approaching Breakout Point
ITC shares are trading around ₹407.85, consolidating into a broader range and forming a symmetrical triangle pattern on the weekly chart. The stock is 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, immediate resistance lies in the ₹410 to ₹415 zone, which aligns with the 100-week EMA. A decisive break above this zone would confirm trend reversal. Substantial accumulation is visible near ₹400, acting as reliable support. The stock remains above the 200 EMA with the EMA structure sloping upward, reinforcing positive long-term outlook.
Trading strategy: Buy around current levels with stop loss of ₹390 and target of ₹440.
Key Market Takeaways
The Indian stock market continues to show strength with the Nifty 50 maintaining crucial support levels. All three recommended stocks—Maruti Suzuki, IndiGo, and ITC—present compelling trading opportunities with well-defined risk-reward ratios. Investors should monitor the key support and resistance levels mentioned while implementing proper risk management strategies.
Disclaimer: This analysis is for educational purposes only. The views and recommendations are those of individual analysts and not Mint. Investors should consult certified experts before making investment decisions.
