Sumeet Bagadia Recommends Mahindra & Mahindra, Asian Paints, HCL Tech Amid Bearish Nifty Outlook
Indian equity markets continued their volatile trend last week, with the Nifty 50 index extending its losing streak to seven consecutive weeks, the longest such run in six years. The index declined 1.64% on Thursday before a modest recovery on Friday, ultimately closing the week down 0.88% from the prior Friday's close. Global headwinds persisted as the US 10-year Treasury yield rose above 5.10%, tightening financial conditions and weighing on emerging-market assets. Higher oil prices and geopolitical uncertainty added to the pressure, triggering a sharp mid-week sell-off.
Foreign institutional investors intensified their selling, recording net outflows of approximately ₹18,531 crore month-to-date through September 25. In contrast, domestic institutional investors remained strong buyers, net purchasing around ₹52,617 crore over the same period. Sumeet Bagadia, Executive Director at Choice Broking, maintained a sideways to bearish outlook for the Nifty 50, citing key support at 22,900–23,000 and resistance at 23,300–23,370. He noted that a sustained move above 23,370 could open room for recovery, while a decisive break below 22,900 may resume broader selling pressure.
For the Bank Nifty, Bagadia identified 55,000–55,200 as the near-term support zone and 55,750–56,000 as immediate resistance. A sustained move above 56,000 could improve short-term structure, whereas a break below 55,000 may increase selling pressure. Until either level is decisively breached, the index is expected to remain range-bound.
On stock-specific recommendations, Bagadia highlighted Mahindra & Mahindra, Asian Paints, and HCL Technologies for short-term consideration. Mahindra & Mahindra showed signs of a technical rebound after defending support near ₹2,896–₹2,900, closing at ₹3,035. The stock arrested its steep correction from ₹3,550 and printed a bullish daily candle, indicating emerging buying interest at deep value levels.
Asian Paints was noted for forming a solid double-bottom base near ₹2,390–₹2,400, closing around ₹2,444. The counter arrested its corrective slide from a swing high of ₹2,914.50 and formed a bullish reversal candlestick pattern near its demand zone, suggesting dip accumulation. The price is now testing the short-term 20 EMA resistance near ₹2,490.10.
HCL Technologies was observed consolidating after defending its recent swing low near ₹1,200, closing around ₹1,258. The stock entered a consolidation phase following a pullback from recent highs near ₹1,379.80 and is currently testing an overhead cluster of short- to medium-term exponential moving averages. A decisive close above this cluster could trigger a fresh leg of bullish recovery.
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