While the Indian stock market displayed resilience amid rising tensions related to the India-Pakistan situation, it faced significant selling pressure in the latter part of last week. After a temporary closure on Thursday, major indices on Dalal Street experienced a sharp decline on Friday. The Nifty 50 plummeted by 265 points, or 1.1%, finishing just above the 24,000 threshold at 24,008. Meanwhile, the BSE Sensex fell by 880 points, also 1.1%, marking its most considerable intraday drop since early April, closing at 79,454.
Market Sentiment and Key Support Levels
According to Sumeet Bagadia, Executive Director at Choice Broking, the mood in the Indian stock market has turned cautious as the Nifty 50 dipped below its 200-day exponential moving average (DEMA) support level of 24,050. Bagadia highlighted that the next key support level is anticipated at 23,800, while a significant uptrend could be expected if the index breaks decisively above 24,400. He recommends that investors take a stock-specific approach, focusing on shares with robust technical patterns.
Top Stock Picks for Investors
For those looking to navigate the current market conditions, Bagadia has suggested three notable stocks to consider:
-
Titan Company:
- Buy Price: ₹3510.30
- Target: ₹3865
- Stop Loss: ₹3320
Titan’s share price is currently at ₹3510.30, following a consolidation phase near key support levels. Recently, it displayed a bullish candle pattern on the daily chart, supported by increased trading volumes, indicating a resurgence of buying interest. A breakout from this consolidation has led to the formation of a Cup & Handle pattern, a classic indicator of potential bullish continuation. If Titan maintains its position above ₹3600, it could target ₹3865.
-
UPL:
- Buy Price: ₹674.75
- Target: ₹745
- Stop Loss: ₹639
The share price of UPL stands at ₹674.75, demonstrating an upward trend over the past few months. The stock broke out of a consolidation phase and has shown a consistent pattern of higher highs and lows. Recent trading sessions indicate strong buying momentum, closing near the day’s high. If UPL surpasses ₹695, it could push towards the ₹745 target.
-
Bharat Electronics Limited (BEL):
- Buy Price: ₹315.85
- Target: ₹345
- Stop Loss: ₹300
Currently trading at ₹315.85, BEL has broken out from a broad falling parallel channel. The stock is now hovering near this breakout zone, supported by rising trading volumes, which reflects growing bullish sentiment. A sustained move above ₹320 may trigger additional buying activity, with the potential to reach the target of ₹345.
Conclusion
As market conditions remain volatile, it’s essential for investors to stay informed about key support levels and stock-specific opportunities. Monitoring technical indicators will provide insights into potential trends and help in making informed decisions. Always consult with financial experts or conduct thorough research before making investment choices.
