Buy or sell stocks: This week, both indexes, NSE and BSE experienced a 1% increase, driven by advancements in the automobile and consumer sectors due to anticipated demand growth resulting from changes in the goods and services tax (GST) which were announced on August 15, 2025 and S&P’s recent upgrade of India’s sovereign rating.
Even though the hopes for tax reforms pushed the weekly gains, the benchmarks declined on Friday as investors adopted a cautious stance ahead of US Federal Reserve Chair Jerome Powell’s address at the annual Jackson Hole symposium.
Stock market next week
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment has taken a cautious stance after making weekly gains. The Choice Broking expert said the Nifty 50 index is facing an immediate hurdle at 25,200. On breaking above this level on a closing basis, Bagadia predicted a rally in the 50-stock index.
Speaking on the outlook of the Indian stock market, Sumeet Bagadia said, “The Indian stock market has turned cautious as the Nifty 50 index ended close to 50-DEMA support placed at 24,820 levels. The key benchmark index is facing resistance at 25,150. A bullish or bearish trend can be assumed on the breakage of either side of this range. Breaking above 25,200 levels on a closing basis may trigger a fresh bull trend on Dalal Street.”
Sumeet Bagadia recommended stocks
Sumeet Bagadia of Choice Broking advised investors to maintain a stock-specific approach and look at stocks that look strong on the technical chart. Asked about such stocks, Bagadia recommended buying these three shares: Mahindra & Mahindra (M&M), Bharti Airtel and Sun Pharma.
1] M&M: Buy at ₹3403, Target at ₹3650, Stop Loss at ₹3280
M&M was trading at around ₹3,403 on Friday at NSE closing bell. It is trading well above its key moving averages 20-day and 50 –Day EMA indicating that the broader trend remains firmly bullish.
The stock moved above ₹3,350–3,380 zone and closed on the upside, suggesting that fresh momentum is building. The daily candlestick structure also shows sustained buying near support zones, fueling the bullish outlook.
On the downside, immediate support lies around the 20-day EMA at 3,280, which also aligns with the stop-loss level, making it a strong cushion against short-term volatility. As long as the stock sustains above the support, the uptrend is likely to continue.
A breakout beyond the level of ₹3,600-3650 could lead to an extended rally, though for now the target remains capped at ₹3,650.
2] Bharti Airtel: Buy at ₹1933, Target at ₹2070, Stop Loss at ₹1860
Bharti Airtel is displaying signs of consolidation after a strong rally earlier this year, as it is currently trading near Rs1933.
The stock has been holding firm above its key support levels, with the 20-day EMA and the 50-day EMA, indicating that buyers are maintaining the bullish undertone by defending the lower zones.
On the upside, immediate resistance is placed around ₹1970–1980, and a decisive breakout above this range may push the rally towards ₹2070 in the near term.
On the downside, strong support is positioned near ₹1860, which also aligns with the stop-loss level, making it a key level to watch for trend confirmation.
A breakdown below this could invite near-term weakness, however, as long as the stock sustains above this mark, the overall trend remains constructive.
3] Sun Pharma: Buy at ₹1641, Target at ₹1760, Stop Loss at ₹1585
Sun Pharma is trying to stabilize after a corrective phase, currently trading around ₹1641. The stock recently rebounded from the support zone near ₹1610–1600, indicating demand at lower levels and possible recovery in the short term.
From a technical standpoint, the stock is hovering close to its 20-day EMA at ₹1643, with immediate resistances at the 50-day EMA and 100-day EMA. Sustaining above these moving averages would signal a shift in momentum in favor of the bulls, potentially paving the way for a move higher.
On the downside, the ₹1600–1585 zone has emerged as a strong base, protecting the stock from deeper corrections. As long the stock holds above this zone, the broader structure remains constructive.
On the upside, a sustained move above the short-term EMAs could trigger a rally towards ₹1710 initially, followed by the major target zone of ₹1760. The stock’s ability to reclaim its key moving averages with rising volumes will be crucial for confirming this uptrend.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
