The Indian stock market concluded a week of significant activity on a positive note, demonstrating resilience amidst periods of volatility. Key benchmark indices managed to touch fresh record highs before experiencing some profit-taking at elevated levels. This upward movement was supported by favorable global cues, including softer US bond yields, renewed hopes for a US Federal Reserve interest rate cut, and stable crude oil prices that helped soothe inflation worries.
Despite facing initial headwinds from a depreciating Indian rupee and continued outflows from Foreign Institutional Investors (FIIs), market sentiment saw a notable improvement around mid-week. This shift was powered by strong domestic inflows and growing confidence that the US Fed would soon ease its monetary policy, which re-ignited buying interest and led to a broad-based market recovery.
Sectoral Performance and Market Outlook
The market's gains were not uniform across all sectors. The Pharma, PSU Banks, Media, and IT sectors emerged as the leaders, driving the indices higher. In contrast, the Realty, Consumer Durables, and Oil & Gas sectors underperformed and lagged behind the broader market.
Commenting on the market's trajectory, Sumeet Bagadia, Executive Director at Choice Broking, expressed a bullish outlook. He stated that the sentiment for the Indian stock market remains positive as long as the Nifty 50 index sustains above the 26,000 level. He noted that the index has built a solid foundation in the 25,800-25,750 range and is now poised to reach 26,500. Bagadia added that a decisive close above this level could soon propel the benchmark index towards the 27,200 mark.
Stocks to Buy Next Week
For investors looking for opportunities in the coming week, Sumeet Bagadia recommended three stocks to consider buying: Dr Reddy's Laboratories, Titan Company, and HCL Technologies.
Dr Reddy's Laboratories
Bagadia suggests buying Dr Reddy's stock at around ₹1,258, with a price target of ₹1,350 and a stop loss set at ₹1,210. The stock has shown a gradual improvement in momentum and is now trading near its short-term Exponential Moving Averages (EMAs), indicating returning strength. The immediate support is identified in the ₹1,240–1,250 zone, while resistance is seen between ₹1,300 and ₹1,350.
Titan Company
For Titan, the recommendation is to buy at approximately ₹3,907, aiming for a target of ₹4,200, with a stop loss at ₹3,777. The share price is displaying a strong bullish structure, trading firmly above all key EMAs. The stock has seen a sharp recovery, and its EMAs are positively aligned, with strong support located between ₹3,730 and ₹3,840.
HCL Technologies
HCL Tech is another buy call, with an entry point around ₹1,625, a target of ₹1,750, and a stop loss of ₹1,570. The stock is exhibiting a steady bullish trend, trading comfortably above all its key EMAs. A significant breakout above the ₹1,550 to ₹1,570 band has converted that area into a strong support base, suggesting the broader trend remains positive.
Disclaimer: This article is intended for educational purposes only. The views and recommendations are those of the individual analyst and not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
