Buy or sell stocks: Following weak global market sentiments after the US stock market crash, the Indian stock market ended lower on Thursday. The Nifty 50 index finished 73 points lower at 22,397, the BSE Sensex ended 200 points lower at 73,828, while the Bank Nifty index ended marginally higher at 48,060. Auto and IT sector stocks declined, dragging down the markets. Reliance Industries Ltd. contributed most to the index decline, decreasing 0.7%, while Shriram Finance Ltd. experienced the most significant drop, falling 2.7%. 

Nifty Realty, Media, and Financial Services lost the most among sectoral indices, while the Bank Nifty and PSU Bank indices closed in positive territory. Cash market volumes on the NSE decreased by 15% compared to the previous day. The Nifty Midcap and Smallcap 100 indices underperformed relative to Nifty, with additional losses of 0.75% and 0.98%, respectively. For the fourth consecutive day, declining shares outnumbered advancing ones, resulting in a BSE advance-decline ratio 0.62.

Stock market next week

Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market is cautious as the Nifty 50 index is close to its crucial support at 22,300 to 22,250. The Choice Broking expert said the 50-stock index is a broader 22,000 to 22,650 range. A bullish or bearish trend can be assumed on the breakage of either side of this range. He advised investors to look at technically strong stocks and suggested buying these three buy-or-sell stocks for Monday: Kotak Mahindra Bank, REC, and Sun Pharmaceuticals.

Buy or sell stocks

1] Kotak Mahindra Bank: Buy at ₹1985.10, target ₹2125, stop loss ₹1920.

Kotak Mahindra Bank’s share price currently trades at ₹1985.10, maintaining a strong upward trajectory. The stock has consistently formed higher and lower highs, reinforcing its bullish momentum. Notably, it recently reached a fresh 52-week high of ₹1997.70. Trading well above its 20-day EMA, 50-day EMA, and 200-day EMA, Kotak Mahindra Bank’s share price demonstrates robust support across both short-term and long-term trends. This technical strength and a breakout above a key resistance level underscores the stock’s potential for further appreciation. If the upward momentum persists and the stock breaches higher levels, it could target ₹2125 soon.

On the downside, immediate support for Kotak Mahindra Bank’s share price is ₹1950. The Relative Strength Index (RSI) is currently at 60.88. and trending upward, reflecting growing buying momentum. To manage risk effectively, a stop-loss at ₹1920 is suggested to guard against any unexpected market reversals.

In conclusion, based on the technical analysis and current market conditions, Kotak Mahindra Bank’s share price presents a promising buying opportunity for those aiming for a ₹2125 target, provided that appropriate risk management strategies are in place.

2] REC: Buy at ₹52.65, target ₹56, stop loss ₹51.

The REC’s share price is currently trading at ₹52.65 and is taking support at the 200 EMA, indicating potential strength. A decisive close above ₹53.50 could trigger further upside, with short-term targets of ₹55 and ₹56.

On the downside, ₹52 is an immediate support level, making it a potential buy-on-dip opportunity. To manage risk, a stop-loss at ₹51 is recommended.

The RSI at 36.64 is trending upward, signalling a possible momentum shift. The stock is also forming an inside candle breakout, and a move above ₹54, in conjunction with the 100 EMA, would confirm a bullish breakout. However, a breakdown below ₹52 could lead to further downside pressure.

3] Sun Pharma: Buy at ₹1683.45, target ₹1800, stop loss ₹1610.

Sun Pharma share is trading at ₹1683.45, exhibiting signs of recovery following a prolonged downtrend. The stock has formed a potential bottoming pattern, indicating the possibility of a trend reversal. Recent price action, supported by increasing volume, suggests renewed buying interest. Additionally, the stock has crossed above its 20-day exponential moving average (EMA), signalling a short-term shift in momentum. However, it remains below the 50-day and 200-day EMAs, indicating that a complete trend reversal is yet to be confirmed. If the stock successfully breaks above this level, it could reach a short-term target of ₹1800.

On the upside, resistance is observed in the ₹1700 to 1750 range, while key support is located between ₹1660 to ₹1640. The relative strength index (RSI) currently stands at 53.20, reflecting improving momentum and gradually moving toward bullish territory. To effectively manage risk, a stop-loss at ₹1610 is recommended to protect against potential market reversals.

In conclusion, based on the technical analysis and current market conditions, Sun Pharma share presents a promising buying opportunity for those aiming for a ₹1800 target, provided that appropriate risk management strategies are in place.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.