Nifty 50
Sumeet Bagadia flags weak market bias, names HDFC Life, Cummins India, CG Power as buy ideas
Sumeet Bagadia, Executive Director at Choice Broking, said the short-term structure of the Indian stock market remains weak due to sustained selling pressure over the last eight weeks. He noted that the Nifty 50 index is approaching near-term support at 22,200 after finishing at 22,421, marking its eighth consecutive weekly loss. The BSE Sensex fell nearly 2,000 points and Bank Nifty closed at 54,450 during the truncated week.
Drawing a historical parallel, Bagadia pointed out that in 2008, the Nifty 50 declined for seven consecutive weeks before witnessing a five-week positive move. He said the index is currently holding around the 22,400 zone, but a sustained move above 22,600 would be important for a stronger recovery. Immediate support is seen at 22,100–22,200, while resistance lies at 22,600/22,800.
For Bank Nifty, Bagadia described the setup as a clear sell-on-rise structure. He highlighted 53,843 as a critical support zone, noting that a decisive close below this level could trigger a further decline towards 53,000–52,800. Conversely, if support holds, the index could attempt a rebound towards 55,000–55,200 in the coming sessions.
On stock recommendations for Monday, Bagadia advised buying HDFC Life, Cummins India, and CG Power. HDFC Life shares closed at ₹534 after showing signs of a structural bottom reversal from a double-bottom base near ₹508.70, with a strong bullish candle indicating accumulation at support levels.
Cummins India staged a sharp technical bounce from the lower trendline of its downward-sloping parallel channel, closing around ₹4,860. The stock has been trading within this channel since its peak at ₹6,100 and is now advancing toward the 200 EMA (₹4,969.30) and 20 EMA (₹4,981.80), signaling strong demand near key support.
CG Power resumed its upward trajectory after finding support along an ascending trend line and the 100 EMA, closing at ₹879. The stock has consistently formed higher lows since August, with the recent candle showing sharp dip-buying from the ₹860 support level, pushing it back above the 100 EMA and setting up a challenge to clustered resistance at the 20 EMA and 50 EMA.
The disclaimer accompanying the report clarified that the views and recommendations are those of individual analysts or broking companies and not of Mint. Investors were advised to consult certified financial experts before making any investment decisions.
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