The Indian stock market faced challenges this week as the major indices, Sensex and Nifty, dropped for three consecutive sessions. This downturn brought their weekly loss to 1.8%. On Friday, both indices fell by 0.3%, marking a tough end to August. The Sensex declined by 1.7% for the month, while Nifty 50 saw a 1.4% drop, following a 3% decline in July.
A key factor in this fall was the US’s recent decision to impose an additional 25% tariff on certain Indian goods over the importation of Russian oil. This effectively doubled the previous tariff of 25%. Also, foreign investors withdrew about $3.3 billion from Indian stocks in August, marking the most significant outflow since February due to these tariff issues and weak corporate earnings.
Looking ahead, Sumeet Bagadia, Executive Director at Choice Broking, predicts a continued weak sentiment in the Indian market. He noted that the Nifty index dropped below a crucial support level of 24,500, indicating that the market may struggle to regain momentum. He suggests that a stock-specific investment approach will be more beneficial in this environment.
Bagadia has identified three stocks to watch for potential buying: Colgate, Dalmia Bharat, and Asian Paints. Each of these companies shows signs of positive momentum in their price movements.
1. Colgate-Palmolive
Current Price: ₹2,331.80
Target Price: ₹2,600
Stop Loss: ₹2,200
Colgate has recently shown renewed strength, breaking past previous resistances. The stock is being closely monitored for further upward movement if it holds above ₹2,400.
2. Dalmia Bharat
Current Price: ₹2,401.50
Target Price: ₹2,660
Stop Loss: ₹2,270
Dalmia Bharat is on an upward trend, indicating strong investor interest. It has formed a bullish pattern that could signal further gains if it breaks out above ₹2,430.
3. Asian Paints
Current Price: ₹2,518.60
Target Price: ₹2,770
Stop Loss: ₹2,390
Asian Paints has been relatively stable, showing support at crucial levels. If it surpasses ₹2,600, it may continue its upward trajectory.
Amid these market movements, experts recommend remaining vigilant. The landscape can shift rapidly, and being informed is key. The stock market is influenced not just by domestic factors, but also by global trends. As of recent data, 71% of retail investors are keeping a close watch on market indicators, while many are following expert advice closely on social media, reflecting a growing trend towards data-driven investment strategies.
For anyone considering investing, it’s wise to consult with certified professionals. Market trends can change quickly, and expert guidance can be invaluable during turbulent times.
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