Choice Broking's Executive Director Sumeet Bagadia has identified three stock opportunities for Monday trading, despite the Indian stock market experiencing its fifth consecutive session of decline. The benchmark indices faced significant pressure on Friday, with the Sensex falling 605 points to close at 83,576.24 and the Nifty 50 dropping 194 points to end at 25,683.30. Fresh concerns over US tariffs, cautious sentiment ahead of the Q3 earnings season, and persistent foreign fund outflows contributed to the market weakness.

Market Performance Analysis

The broader market indices also remained under pressure during Friday's session. The BSE Midcap index declined 0.90%, while the Smallcap index experienced a more significant drop of 1.74%. This widespread selling pressure reflected the challenging market environment across different segments.

Technical Analysis of Key Indices

Nifty 50 Outlook

Bagadia provided detailed technical analysis for the Nifty 50, noting that the index opened weak and extended its decline throughout the session. The index briefly breached the key support level of 25,800 and confirmed a decisive breakdown below this zone, reinforcing the short-term bearish bias and weakening market structure.

The technical indicators present a mixed picture for the Nifty 50:

• Immediate resistance: 25,800–25,850 zone
• Crucial support: 25,500–25,550 range
• Daily RSI: 38.55, trending lower and reflecting deteriorating momentum
• India VIX: Increased 3.07% to 10.92, indicating marginal pickup in volatility

Bank Nifty Assessment

The Bank Nifty experienced a particularly challenging session, opening flat but witnessing a sharp bearish move of nearly 590 points. The index registered an intraday low at 59,154, indicating aggressive profit booking and supply pressure at higher levels. Bagadia characterized this price action as a short-term consolidation-to-correction phase after recent gains.

Key technical levels for Bank Nifty include:

• Immediate resistance: 59,500–59,600 zone
• Critical support: 59,000–58,900 band
• Daily RSI: 47.96, trending lower and suggesting loss of upward momentum

Stock Recommendations for Monday

Despite the challenging market environment, Bagadia has identified three stock opportunities under ₹100 for Monday trading:

All three recommendations come with clearly defined risk management parameters, including specific stop-loss levels to protect against downside risks. The target prices suggest potential upside ranging from approximately 7% across all three picks.

Trading Strategy Recommendations

Bagadia advised maintaining a selective buy-on-dips strategy for the Nifty 50, provided the index holds above 25,600, with strict stop-losses placed at 25,500 to manage downside risk. For Bank Nifty, despite short-term weakness, he recommended maintaining a bullish bias and adopting a buy-on-dips strategy near key support levels, supported by disciplined risk management with appropriate stop-loss placements.

Indian equity markets faced continued pressure on Friday, with benchmark indices extending their losing streak to five consecutive sessions as global uncertainties and domestic concerns weighed heavily on investor sentiment. An early attempt at recovery quickly faded as caution dominated trading throughout the session.

Market Performance Overview

The trading session reflected sustained selling pressure across major indices, with both benchmark indicators closing significantly lower.

Market Analysis and Outlook

According to Vinod Nair, head of research at Geojit Investments, the Indian market remains in a consolidation phase driven by multiple headwinds. "The market is experiencing weak global cues, rising bond yields, and persistent foreign institutional investor outflows, despite a supportive Q3 earnings outlook," Nair explained. He noted that domestic risk-off sentiment has intensified due to uncertainty over tariff negotiations and escalating geopolitical tensions.

From a technical perspective, Rupak De, senior technical analyst at LKP Securities, highlighted concerning chart patterns. The Nifty has slipped further below the 50-day exponential moving average, indicating mounting weakness. "Market sentiment appears decisively negative. In the short term, the trend might remain weak, with potential downside towards 25,550–25,500," De observed, adding that resistance is positioned at 25,850.

Trading Activity Highlights

Despite the overall market decline, trading volumes remained robust across various segments. The most active stocks by turnover demonstrated significant institutional and retail participation.

In terms of volume activity, Vodafone Idea dominated with 214.74 crore shares traded, followed by Indian Energy Exchange at 22.18 crore shares and YES Bank at 10.97 crore shares.

Market Breadth and Stock Performance

Market sentiment remained decisively bearish, with declining stocks significantly outnumbering advancing ones. Of the 4,342 stocks traded on the BSE, 3,104 declined while only 1,062 advanced, and 176 ended unchanged.

Despite the overall weakness, certain stocks showed resilience with strong buying interest, including NALCO, Hindustan Zinc, Schloss Bangalore, Oil India Ltd, Coforge, Ipca Laboratories, and CCL Products. Conversely, stocks facing selling pressure included Elecon Engineering Company, Indian Energy Exchange, Manappuram Finance, Force Motors, Transformers & Rectifiers, Ather Energy, and Tejas Networks.

Notably, over 73 stocks hit their 52-week highs, including Eicher Motors and Indus Towers, while 326 stocks slipped to their 52-week lows, reflecting the mixed undercurrents in individual stock performance despite broader market weakness.