Indian Stock Market Ends Higher After Five Days of Losses: Stocks to Buy on Monday
The Indian stock market benchmark indices, Sensex and Nifty 50, closed higher on Friday, breaking a five-day losing streak. Despite the positive end to the week, both indices saw a decline of about 2% each for the week ended May 10. The broader midcap and smallcap indices fared even worse, falling 3% and 4% respectively, while the Bank Nifty index also declined by around 3%, ending the week at 47,421.
The underperformance of the domestic equity market compared to global peers can be attributed to various factors such as sharp selling by foreign portfolio investors (FPIs), the delay in a US interest rate cut, cautiousness ahead of the Lok Sabha election outcome, muted Q4 results, and a substantial increase in the India VIX.
Analysts have noted that the Nifty 50 index has been trading within a range of 21,750 to 22,800 in recent months and is currently approaching the lower end of this range. The Bank Nifty index is also nearing its next immediate support level at 47,200.
In light of the market conditions, Sumeet Bagadia, Executive Director at Choice Broking, has recommended three stocks to buy on Monday that he believes are well-positioned for a potential upmove. These stocks include Eicher Motors, Zomato, and Bharti Airtel.
Eicher Motors, currently trading at ₹4,657.85, has shown a favorable technical setup on the daily charts, with a potential target price of ₹4,930. Zomato, trading at all-time high levels, has a target price of ₹215, while Bharti Airtel, rebounding from a support level around ₹1,270, has a target price of ₹1,350.
Investors are advised to conduct their own research and consult with certified experts before making any investment decisions. The views and recommendations mentioned above are those of individual analysts or broking companies, and not of Mint.
