The Indian stock market witnessed a sharp reversal on Friday, erasing strong morning gains to finish significantly lower amid a confluence of negative factors. The sell-off was driven by persistent foreign institutional investor (FII) outflows, disappointing third-quarter earnings trends—particularly in the IT and consumption sectors—continued weakness in the Indian Rupee, and renewed fears over potential tariffs from former US President Donald Trump targeting NATO countries, including implications for global trade.
Market Performance: Key Indices Plunge
After a promising start to the trading session, benchmark indices succumbed to heavy selling pressure. The Nifty 50 index tumbled 241 points to close at 25,048, while the BSE Sensex crashed 769 points, settling at 81,537. The Bank Nifty index was hit particularly hard, nosediving 727 points to end the day at 58,473. This downturn reflects growing investor caution and profit-booking at higher levels.
Expert Analysis: Market Sentiment Turns Weak
Sumeet Bagadia, Executive Director at Choice Broking, highlighted the deteriorating sentiment in the Indian equity markets. He pointed out that the Nifty 50 index has decisively broken below the critical 200-day exponential moving average (DEMA) support level at 25,100, failing to sustain at elevated levels. According to Bagadia, the price action indicates significant selling pressure at higher valuations and a conspicuous lack of follow-through buying interest.
Technical Outlook and Key Levels
Elaborating on the market outlook, Bagadia stated, "The bias remains weak as Nifty has breached the 200-DEMA at 25,100. The index now faces crucial support at 24,900. A breakdown below this level could trigger further selling, potentially driving the index toward the next demand zone between 24,500 and 24,400 on technical charts." He added that for any meaningful recovery, the Nifty must close above the 25,500 mark to restore confidence among bullish investors.
Top 5 Breakout Stocks to Buy Today
Despite the broader market weakness, Sumeet Bagadia identified five stocks exhibiting strong breakout potential based on technical analysis. Here are his recommendations:
- Equitas Small Finance Bank: Buy at ₹71.05, target ₹77.48, stop loss ₹68.80. The stock shows a bullish reversal on daily charts after a prolonged correction, breaking above the ₹69–70 resistance with strong candles. It has reclaimed the 20 and 50 EMAs, both trending upward.
- ACI: Buy at ₹552.80, target ₹600, stop loss ₹525. Trading near ₹552.80, ACI has formed a base and bounced sharply, indicating strength. It trades above the 20 and 50-day EMAs, with support near ₹535 aligned with the 20-day EMA.
- HCL Tech: Buy at ₹1,707, target ₹1,855, stop loss ₹1,620. Displaying a clear bullish reversal with higher highs and lows, HCL Tech trades above the 20 and 50 EMAs, both turning upward. It has reclaimed the 100 EMA, with the 200 EMA providing strong support.
- Chennai Petroleum: Buy at ₹842.20, target ₹920, stop loss ₹800. The stock exhibits renewed strength after firm support near the 200-day EMA, trading above key 100 and 200-day EMAs, reinforcing its bullish structure.
- Bajaj Consumer: Buy at ₹305.80, target ₹335, stop loss ₹290. Showing strong bullish continuation post-consolidation, Bajaj Consumer broke above the ₹300–305 resistance with robust volume. It trades comfortably above all key EMAs—20, 50, 100, and 200—which are trending upward.
Disclaimer: This article is for educational purposes only. The views and recommendations are those of individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
