Following weak global market sentiments and renewed fears of a US Fed rate hike, the Indian stock market experienced a decline on Friday. The NSE Nifty lost 114 points, closing at 19,428 levels, while the BSE Sensex corrected 365 points and finished at the 65,322 mark. The Bank Nifty index also saw a decrease of 342 points, ending at 44,199 levels. Although the broad market indices fell less than the Nifty, the advance decline ratio dipped to 0.65:1.
Stock Market Strategy for Next Week
Sumeet Bagadia, Executive Director at Choice Broking, believes that the Nifty has support placed at 19,250 to 19,300 levels. Breaching this support would indicate a further downside trend. On the upper side, the Nifty has a hurdle placed at 19,650 levels, with strong resistance at 19,800 levels. To reach a new high or touch 20,000 levels, the Nifty needs to sustain above 19,800 on a closing basis.
Stock Recommendations
Sumeet Bagadia recommended three stocks to buy for the upcoming week: Bharti Airtel, Coal India, and Grasim Industries.
Bharti Airtel
Currently trading at ₹870, Bharti Airtel shares have a strong market stance supported by a robust foundation. The stock is positioned at a commendable support level of ₹865, which coincides with the 100-day Exponential Moving Average (EMA). This level provides resilience within the price band of ₹865 to ₹900. Bharti Airtel’s alignment with the 100 EMA at ₹865 suggests sustained support, making it a candidate for prudent consideration.
Coal India
Shares of Coal India Ltd have formed a strong support near ₹230 levels, close to its 50-day Exponential Moving Average. Currently trading around ₹234.90, the stock is above its short-term (20-day), medium-term (50-day), and long-term (200-day) exponential moving averages. Overcoming the resistance at ₹237 levels will allow the stock to move towards higher levels of ₹248. The momentum indicator RSI is also indicating strength. Investors and traders can buy Coal India shares at the current market price of ₹234.90.
Grasim Industries
In the daily time frame, Grasim Industries’ share price is moving in a Higher High – Higher Low formation, suggesting a bullish trend. Volume has been gradually rising, confirming bullishness in the trend. The stock has found support at the 50 and 20 Simple Moving Averages. Indicators such as RSI and MACD also confirm the positive trend. Grasim Industries has broken out of the resistance zone of ₹1790 to ₹1800 and is sustaining above these levels. In the hourly chart, the stock has multiple supports in a falling channel. Closing and sustaining above ₹1835 could lead to levels of ₹1890 to ₹1910 in the coming days.
