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Buy or sell stocks: Despite trimming a significant portion of their intraday gains, the key benchmark indices of the Indian stock market, the Nifty 50 and the BSE Sensex, finished higher on Friday. The Nifty 50 index added 112 points and closed at 23,114, whereas the Bank Nifty index ended 325 points higher at 74,532. The Bank Nifty index ended marginally lower at 53,427.

Sectorally, Dalal Street breadth remained positive with most indices ending in the green. Telecom, IT, metals, pharma, and PSU Bank stocks led the gains, rising 1–2%, while media, private bank, and realty were the only sectors that ended in the red. The Nifty mid-cap index rose 0.6%, indicating continued participation in the broader market, while the small-cap index ended flat, reflecting relatively muted activity.

Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market's undertone suggests profit booking at higher levels and a lack of sustained bullish momentum. The Choice Broking expert said the 23,000 to 22,950 is a solid support for the 50-stock index. Breaking below this support would mean further weakness in the Indian stock market.

Speaking on the outlook of the Nifty 50 index, Sumeet Bagadia said the 23,250–23,300 zone is now acting as immediate resistance, while a solid support base is forming in the 22,950–23,000 range. The daily RSI stands at 31.84, indicating near-oversold conditions that may hint at a potential short-term bounce but still reflect underlying weakness.

“The India VIX today remained nearly flat, rising marginally by 0.04% to 22.81, pointing to elevated volatility and persistent caution among market participants. In the derivatives segment, strong put writing at 23,000 and significant call writing at 23,300 suggest that the index is likely to remain range-bound between these levels in the near term. Traders are therefore advised to maintain a cautious approach,” said Bagadia.

Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy-or-sell stocks: JSW Steel, Dr Reddy's Laboratories, and Reliance.

1] JSW Steel: Buy at ₹1167.80, Target ₹1225, Stop Loss ₹1110.

JSW Steel share has closed today’s session on a positive note at 1169.60 levels. The stock is exhibiting a sustained uptrend, characterised by a consistent pattern of higher highs and higher lows on broader timeframes such as the weekly and monthly charts, indicating underlying strength in price action.

Technically, the stock has taken support near its 50-week exponential moving average (50-WEMA) and 200-day exponential moving average (200-DEMA), highlighting strong support at key technical levels. This behaviour reinforces the bullish outlook and suggests stability around these moving averages.

2] Dr Reddy's Laboratories: Buy at ₹1298.90, Target ₹1340, Stop Loss ₹1250.

Dr Reddy's Laboratories' share price has recently taken support from its 20-day exponential moving average (20-DEMA), indicating short-term strength. Additionally, the price is trading above all its key moving averages, including the 20 and 50-period DEMA and WEMA, which reflects a strong bullish trend across multiple timeframes.

The momentum indicator, the Relative Strength Index (RSI), is above the 50 midpoint, further confirming positive momentum and underlying buying strength in the stock.

3] Reliance Industries Ltd or RIL: Buy at ₹1414.10, Target ₹1500, Stop Loss ₹1350.

Reliance share price has broken out of a range consolidation on the hourly chart during today’s trading session. It is now trading near the breakout levels, indicating sustained bullish momentum. Additionally, the stock is taking support at its 20-day exponential moving average (20-DEMA) and continues to trade above it, reinforcing the positive trend.

On the derivatives front, the stock has recorded a 5.90% increase in open interest (OI) for the current month, along with a 1.96% rise in the price of current month expiry futures. This combination suggests a long build-up in the stock.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records.

While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat.

Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities.

Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).

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