The Indian stock market extended its losses for the second day in a row on Friday, as the Nifty 50 index ended nearly 400 points below the week’s high, settling at 24,837. This marks the fourth consecutive week of losses for the benchmark index, with a weekly decline of 0.53%. The index also broke below its 50-day exponential moving average (DEMA) of 24,900, signaling a weakening market sentiment.
While the broader market saw sharp sell-offs, select stocks like Cipla, SBI Life, and Apollo Hospitals managed to show resilience, emerging as the day’s top Nifty gainers. On the other hand, financial majors including Bajaj Finance, Shriram Finance, and IndusInd Bank bore the brunt of the selling pressure.
Sectoral and Broader Market Snapshot
Most sectoral indices ended in the red. Notably:
| Sector Index | Performance |
| Nifty Pharma | Positive |
| Nifty Healthcare | Positive |
| Nifty Media | Sharp fall |
| PSU Banks | Sharp fall |
| Oil & Gas | Sharp fall |
| Metals | Sharp fall |
The broader market fared even worse, with the Nifty Midcap 100 falling 1.61% and the Nifty Smallcap 100 plunging 2.10%. Market breadth remained negative for the seventh day in a row, with the BSE advance-decline ratio hitting a low of 0.40, the weakest since June 19.
Technical Outlook: What Lies Ahead
Sumeet Bagadia, Executive Director at Choice Broking, believes that the recent breach below the 50-DEMA has tilted the short-term bias towards the downside. He anticipates that the Nifty could test 24,700 to 24,650 in the coming sessions, with 24,500 acting as a key support and 25,050 as the immediate resistance.
Bagadia advises a stock-specific approach going forward, and recommends focusing on technically strong counters.
Top Stock Picks by Sumeet Bagadia
Here are three stocks that Bagadia recommends for the upcoming week:
1. Sun Pharmaceutical Industries (Buy at ₹1,699 | Target ₹1,850 | Stop Loss ₹1,620)
Sun Pharma continues to show strength in its uptrend, forming higher highs and higher lows. The stock is consolidating in a demand zone with stable volume support. A breakout above ₹1,730 could confirm reversal and trigger further upside.
“Sun Pharma’s structure looks constructive with improving momentum and strong accumulation. A sustained move above ₹1,730 can lead to ₹1,850,” says Bagadia.
2. HDFC Life Insurance (Buy at ₹762.35 | Target ₹825 | Stop Loss ₹730)
After a healthy retracement, HDFC Life is showing signs of a reversal from key demand zones. The stock remains in a long-term uptrend and could resume its momentum if it crosses ₹775.
“The price is stabilising with renewed buying. A move above ₹775 may push it toward ₹825 in the near term,” Bagadia notes.
3. Jindal Steel and Power (Buy at ₹1,000 | Target ₹1,090 | Stop Loss ₹955)
Jindal Steel has confirmed a bullish breakout from an Inverted Head & Shoulders pattern. It is now trading above all major EMAs with positive momentum indicators like RSI and MACD supporting the trend.
“This breakout is volume-backed and aligns with key bullish signals. If it sustains above ₹1,000, ₹1,090 is on the cards,” Bagadia adds.
Despite weak market breadth and pressure on key indices, traders still have opportunities in selective stocks showing strong technical setups. As the market consolidates, stock selection and discipline will be crucial.
Disclaimer: The views and recommendations expressed are those of individual analysts or brokerage firms, not of Capital Mirror. Investors are advised to consult certified financial experts before taking any investment decisions.
