Buy or sell stocks: The Indian stock market ended flat on Friday, September 5, on profit booking as concerns over Trump tariffs and their economic fallout, as well as sustained foreign capital outflow, continued to weigh on market sentiment. The Sensex and the Nifty 50 market benchmarks opened higher but failed to hold gains despite positive global cues on expectations of a US Fed rate cut this month. The Sensex slipped 7 points to end at 80,710.76, while the Nifty 50 ended at 24,741, up 7 points. The BSE Midcap index fell 0.10 per cent, while the Smallcap index increased by 0.09 per cent.
Stock market next week
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market’s positive bias is still maintained. The Nifty 50 index ended above the 20-DEMA, placing it around 24,710. The Choice Broking expert said the key benchmark index is facing hurdles at the 25,000 levels, and breaking above this resistance may trigger a fresh bull trend on Dalal Street.
Speaking on the outlook of the Indian stock market, Sumeet Bagadia said, “The Indian stock market sentiment is positive as the Nifty 50 index closed above the 20-DEMA at 24,710. However, the key benchmark index faces a hurdle at 25,000 after making an immediate base of 24,600. On breaking above 25,000 decisively, we can expect a fresh bull trend in the Indian secondary market. So, one should look at those stocks that look strong on the technical chart pattern.”
Sumeet Bagadia’s recommended stocks
On Monday, Sumeet Bagadia recommended buying three stocks: Dr Reddy’s Laboratories Ltd, Cholamandalam Investment, and Reliance Industries Ltd (RIL).
1] Dr Reddy’s Laboratories: Buy at ₹1268, Target ₹1360, Stop Loss ₹1222.
Dr Reddy’s Laboratories’ share price shows early signs of recovery after a consolidation phase, currently trading near ₹1268. The bounce from the ₹1250 support zone suggests strong buying interest at lower levels. The stock trades around its key moving averages, 20-day, 50-day, and 100-day EMAs.Sustaining above these levels will be a positive signal and may trigger further upside momentum. The 200-day EMA at ₹1246 is an essential long-term support zone.
The recent low around ₹1250 is acting as a strong base, and as long as this level is protected, the stock is expected to move higher. On the upside, a decisive move above ₹1280 could accelerate momentum towards the ₹1360 levels, where the next resistance zone lies. The structure indicates that as long as the ₹1222 support is intact, the trend favours buyers.
A close below ₹1222 could negate the recovery setup and invite renewed selling pressure. Hence, a stop-loss at ₹1222 is recommended to manage risk effectively.
In summary, Dr Reddy’s Laboratories’ share shows signs of a consolidation breakout and looks favourable for an upside move. A buy at current levels is advised with near-term targets of ₹1360 and ₹1380. Maintain strict risk management with a stop-loss at ₹1222.
2] Cholamandalam Investment: Buy at ₹1490.90, Target ₹1600, Stop Loss ₹1440.
Cholamandalam Investment’s share price is showing signs of strength after a corrective phase. It is currently trading around ₹1490.90. The bounce from the recent low near ₹1420 highlights buying interest emerging at lower levels.
The stock is hovering around key moving averages, including the 20-day EMA. A sustained close above the 50-day EMA would be an early sign of strength, while a breakout beyond ₹1520 could confirm momentum towards the ₹1600 zone.
The broader structure suggests consolidation with a potential breakout brewing. The recent higher lows formation indicates that bulls are gradually regaining control. On the downside, strong support exists near ₹1440, where the stop-loss is recommended to manage risk.
If the stock sustains above the short-term moving averages, it may extend the move towards ₹1600, with volume confirmation acting as a key trigger. However, failure to hold above ₹1470 to ₹1460 could invite renewed selling pressure.
3] Reliance: Buy at ₹1375, Target ₹1470, Stop Loss ₹1325.
The Reliance share price is attempting to stabilise after a corrective phase. It is currently trading around ₹1375. The recent rebound from the ₹1350 zone indicates renewed buying interest, suggesting the stock may form a short-term base.
On the technical front, Reliance’s share price is still trading below its major moving averages—the 20-day, 50-day, and 100-day EMAS. This highlights that the broader trend remains weak. However, the price has inched closer to these resistance levels, and a sustained move above them could trigger strong upward momentum.
A close above the 20-day EMA of ₹1386 would be the first sign of strength, while a breakout beyond the 50-day EMA would confirm a potential trend reversal. On the downside, the ₹1325 level serves as strong support and a crucial stop-loss point. Any breach below this level may drag the stock lower.
If Reliance shares sustain above ₹1400, they could pave the way for a rally towards ₹1470, which aligns with its recent swing highs and previous price action resistance. Volume action will play a key role in validating this breakout.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
