By The Indian stock market faced a significant downturn on Friday, marking its third consecutive session of losses. The Nifty 50 index dropped by 292 points to close at 24,852, while the BSE Sensex experienced a sharper decline of 1,017 points, settling at 81,183.
The Nifty Bank index also corrected substantially, falling by 896 points to end at 50,576. This negative trend reflects growing concerns over the U.S. labor market and inflation, which have been affecting global market sentiment.
The market’s downward movement was mirrored by an increase in cash market volumes on the NSE, which rose by 7.4% compared to the previous session. Despite this uptick in trading activity, the Mid-cap index fell more steeply than the Nifty 50, indicating broader market weakness. The advance-decline ratio also took a hit, plummeting to 0.35:1, suggesting that decliners significantly outnumbered gainers.
In light of the current market conditions, stock experts are recommending careful stock selection. Sumeet Bagadia, Executive Director at Choice Broking, has pointed out that the Indian stock market’s bias has turned weak.
The Nifty 50 has lost its crucial support level of 24,900, and Bagadia suggests that the near-term support for the index is between 24,750 and 24,800. He recommends focusing on stocks with strong technical indicators and favorable market sentiment to navigate the current volatility.
Bagadia has identified three stocks to consider for potential gains in the current market environment.
Hero MotoCorp is one of his top picks. Trading at ₹5,743.75, Hero MotoCorp has shown a robust long-term uptrend, marked by higher highs and higher lows. The stock recently underwent a V-shaped recovery from its demand zones, supported by increased trading volumes.
If Hero MotoCorp can maintain its position above ₹5,800, it could continue its upward momentum, with a target price of ₹6,205. The RSI at 70.08 and the stock’s bounce from key moving averages reinforce this bullish outlook.
Marico Industries is another stock on Bagadia’s radar. Currently priced at ₹665.25, Marico has been trading within a rising parallel channel and is nearing historical peaks.
The stock has shown signs of strength, supported by a notable increase in trading volumes and a positive RSI crossover at 52.95. Bagadia suggests buying Marico shares at ₹665.25, with a target price of ₹725 and a stop loss at ₹636. This recommendation is based on Marico’s consolidation near demand zones and its favorable technical indicators.
Bajaj Finance rounds out the list of recommended stocks. Trading at ₹7,317.15, Bajaj Finance is showing signs of a potential breakout from its consolidation range. The stock has rebounded from its support zones and moved above key moving averages, including the 20-day, 50-day, and 200-day EMAs.
The RSI at 67.20 further supports a bullish outlook. Bagadia recommends buying Bajaj Finance at ₹7,317.15, with a target price of ₹7,905 and a stop loss at ₹7,020. This recommendation is based on the stock’s upward momentum and strong technical indicators.
As investors navigate the current market volatility, the focus on stocks with favorable technical setups and solid fundamentals is crucial. The recent market decline underscores the importance of selective investment strategies and vigilant monitoring of market conditions. With ongoing concerns about global economic factors and their impact on domestic markets, investors should remain cautious and stay informed about the latest market developments.
