The Indian stock market witnessed a corrective phase on Friday, November 21, interrupting its two-day upward movement as benchmark indices closed nearly half a percent lower. The decline was primarily driven by weakness in major financial sector stocks amid subdued global market sentiment.
Market Performance Details
The Sensex dropped 400.76 points, representing a 0.47% decline, to conclude the trading session at 85,231.92. Similarly, the Nifty 50 index retreated by 124 points, also falling 0.47%, to settle at 26,068.15. This pullback occurred after the Nifty had achieved a fresh 52-week high of 26,246.65 during the previous trading session on November 20.
Significant pressure came from banking and financial heavyweights including HDFC Bank, ICICI Bank, State Bank of India, and Bajaj Finance, which all contributed to the downward movement. The overall market sentiment reflected caution among investors following the recent rally to new highs.
Expert Outlook for Next Week
Despite Friday's decline, market experts maintain a positive outlook on the Indian stock market's trajectory. Sumeet Bagadia, Executive Director at Choice Broking, emphasized that the market sentiment remains optimistic as the Nifty 50 continues to hold above the crucial 26,000 level.
"The key benchmark index has established important support at 25,800," Bagadia noted. "The Nifty 50 index is positioned for a potential fresh breakout at 26,300. If the index successfully surpasses this resistance level, it could potentially advance toward the 26,700 mark in the near term."
The analyst recommended investors maintain a stock-specific approach and focus on technically strong stocks showing promising chart patterns.
Recommended Stocks to Buy
Sumeet Bagadia has identified three stocks that investors could consider buying on Monday, November 24, based on technical analysis:
Coastal Corporation: Purchase at ₹45.94 with a target price of ₹49.5 and stop loss at ₹44.25
Malu Paper Mills: Buy at ₹41.48 aiming for target price of ₹44.5 with stop loss positioned at ₹39.9
Global Education: Acquire at ₹80 with target price set at ₹86 and stop loss at ₹77
Investors should note that these recommendations are for educational purposes and represent the views of individual analysts. It's advisable to consult with certified financial experts before making any investment decisions.
