The Indian stock market continues to face significant pressure, with the Nifty 50 index crashing 679 points over three consecutive sessions last week. According to Choice Broking's Sumeet Bagadia, the index closed at 23,897 on Tuesday, indicating sustained selling bias and weak market sentiment. The Bank Nifty index declined nearly 1,300 points from Wednesday to Friday, ending at 56,089 compared to its previous close of 57,371. Technical indicators show the Relative Strength Index (RSI) at 49.21, slipping below the 50 midpoint, while the India VIX increased by 6.04% to close at 19.71, suggesting rising market uncertainty.
Among sectors, the IT index corrected sharply, shedding over 10%, while the FMCG and Energy indices rallied over 2% despite weak market sentiment. As reported by Choice Broking, the market slipped below the 50-day SMA of 24,300/78,000 due to profit booking at higher levels. Bagadia noted that notable call writing was seen at the 24,000 strike and 24,100 strike, while significant put writing was observed at 23,900 and 23,800 levels, indicating near-term support zones.
SBI is recommended for purchase at ₹1,101 with a target of ₹1,180 and stop loss at ₹1,048. According to Bagadia's analysis, the stock is currently consolidating near the ₹1,100 zone after a strong uptrend, with the 20-day and 50-day EMAs closely placed around current levels. The 100-day EMA at ₹1,048 remains a crucial medium-term base, while the stock has recently taken support near its short-term moving averages.
Coal India Ltd is recommended for purchase at ₹456 with a target of ₹488 and stop loss at ₹440. As reported by Choice Broking, the stock is showing an improving price structure as it approaches a key resistance zone near the descending trendline, with price action reflecting a sequence of higher highs and higher lows. Grasim Industries is recommended at ₹2,739 with a target of ₹2,915 and stop loss at ₹2,626. The stock is currently in a sideways consolidation phase after a recent volatile move, with the price stabilising above the 2,700 zone and recently reclaiming the 20-day EMA at ₹2,715.
From a technical perspective, immediate support for the Nifty 50 is identified in the 23,650–23,700 range, while resistance is observed between 24,050 and 24,150. Bagadia believes the Indian stock market bias remains weak, with the Nifty 50 index potentially testing its current support range of 23,700 to 23,650. The analysis suggests that while near-term volatility remains elevated, selective stock picking based on technical analysis may present opportunities in the current market environment.
