The Indian stock market witnessed another session of losses on Thursday, with frontline indices closing in the red for the second consecutive day. Mounting pressure from the rupee’s weakening against the US dollar and sustained foreign outflows weighed heavily on market sentiment. The S&P BSE Sensex dropped Rs 528.28 points (0.68%) to close at Rs 77,620.21, while the broader NSE Nifty declined by Rs 162.45 points (0.69%) to settle at Rs 23,526.50.
IT, energy, and banking stocks contributed significantly to the market’s decline. Analysts have signalled caution for the coming sessions, urging traders to watch key support and resistance levels. Vatsal Bhuva, Technical Analyst at LKP Securities, emphasized Nifty’s struggle around the 200-day EMA, indicating a bearish trend unless key support levels hold.
Key Market Levels to Watch
- Support Level: Rs 23,500
- Resistance Level: Rs 23,800
According to Bhuva, a decisive breach below Rs 23,500 could trigger a continued sell-off, while holding this support may lead to temporary consolidation. Traders are advised to adopt a cautious approach, with a sell-on-rise strategy for the short term.
5 Stock Recommendations for Friday
1. Sell Ashok Leyland Future at Rs 214.91
- Target: Rs 205
- Stop Loss: Rs 220
Ashok Leyland has broken below a crucial channel pattern, signaling increased selling pressure. The stock closed below the 200-day EMA, with heightened volumes supporting the bearish outlook. A bearish candlestick formation and an RSI at 39 suggest further downside potential.
2. Sell RBL Bank Future at Rs 158.86
- Target: Rs 150
- Stop Loss: Rs 163
RBL Bank displayed a 2.03% decline, forming a bearish candlestick and breaking down from an inverted flag pattern. The downward momentum is likely to persist, with the RSI trending lower and indicating continued weakness as long as the stock stays below Rs 163.
3. Buy Mahindra & Mahindra at Rs 3,130
- Target: Rs 3,680
- Stop Loss: Rs 2,950
Mahindra & Mahindra (M&M) has shown strong bullish momentum, recently moving above the 50-EMA level of Rs 2,970. The stock is forming an ascending triangle pattern with a breakout zone at Rs 3,230. A breach above this level could propel the stock toward Rs 3,490 and Rs 3,680 in the near term.
4. Buy Colgate Palmolive at Rs 2,883
- Target: Rs 3,470
- Stop Loss: Rs 2,670
After a significant correction from Rs 3,890, Colgate Palmolive has stabilized near the Rs 2,670 support level. A double-bottom pattern and a recovery in RSI from oversold territory suggest potential for a strong upside. The stock’s recent close above the 50-EMA zone strengthens the bullish bias.
5. Buy Mazagon Dock at Rs 2,225
- Target: Rs 2,650
- Stop Loss: Rs 2,020
Mazagon Dock has rebounded from its recent correction and formed a positive candlestick near the ascending channel’s base. The RSI’s positive reversal indicates further upward momentum. The technical chart presents a compelling bullish setup, with a target of Rs 2,650.
Amid ongoing global uncertainties and domestic pressures, traders are advised to exercise caution and closely monitor key market levels. Stocks such as Mahindra & Mahindra and Mazagon Dock present bullish setups with potential upside, while Ashok Leyland and RBL Bank exhibit bearish patterns, suggesting opportunities for short positions. Stay updated on market trends and adjust trading strategies accordingly for optimal gains.
Disclaimer: Stock recommendations are based on technical analysis and market conditions. Please consult a financial advisor before making any trading decisions.
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