Buy or sell stocks: Indian stock market landmarks – the Sensex and the Clever 50– closed with losses for the week ended November 8, mainly due to foreign capital outflows amid concerns about weak second-quarter profits and high valuations. A 25 basis point rate cut by the US Fed provided no relief as the market had already priced it in. The uncertainty linked to the US elections is now over and the market is once again focusing on fundamentals.

“The Indian market continues to witness consolidation due to increased selling pressure from FIIs, driven by concerns over weak corporate earnings and premium valuations. This widespread correction is particularly evident in sectors with excessive valuations,” Vinod Nair, head of research at Geojit Financial Services, observed.

“The expected slowdown in domestic GDP growth in the second quarter has further dampened market sentiment. Conversely, attractive valuations of other Asian countries and ongoing stimulus measures by China are also contributing to the underperformance. domestic market performance,” Nair said.

Indian Stock Market Outlook

Despite the recent correction, the valuation of the Indian stock market remains high. Additionally, India Inc.’s September quarter earnings were weaker, making investors cautious.

Experts consider the area near 24,000 as a key support for the Nifty 50. A fresh wave of sell-off could begin if the index breaks below this level.

According to Amol Athawale, vice president of technical research at Kotak Securities, 24,100 and 24,000 would serve as key support zones for the Nifty 50. If the index sustains above the same level, it could retest at the level of 24,500, and further rise could also continue. , which could take the index to 24,600. However, below 24,000, sentiment could change and traders may prefer to exit long positions.

Sumeet Bagadia Stocks to Buy

Infosys | Buy for cash at ₹1,829.95 | Indicative price: ₹1,960 | Stop Losses: ₹1,760

Infosys remains in a long-term uptrend. The stock experienced a pullback from its consolidation range near record highs and attempted to find support near demand zones.

It showed signs of a strong reversal from a key demand area, indicating renewed buying interest at these support levels.

If the stock crosses and remains above the ₹1,860, it could rally further towards the level ₹1,960 points.

The Relative Strength Index (RSI) is currently at 46.84, rebounding from the oversold zone.

This upward movement in the RSI supports the ongoing uptrend and indicates strengthening momentum, suggesting continued buying interest if price action aligns with these technical signals.

Infosys also bounced off its 200-day EMA (exponential moving average), an important long-term support level, although it remains below the 20-day and 50-day EMA levels.

Breaking above these EMAs in the short to medium term could further confirm the uptrend, providing a stronger buying opportunity.

“Based on these technical indicators, we recommend going long Infosys at 1,829.95, with a stop-loss at ₹1,760 to manage risk and a price target of ₹1,960, which is in line with the current favorable market sentiment,” Bagadia said.

Hindustan Unilever | Buy for cash at ₹2,507.70 | Indicative price: ₹2,685 | Stop Losses: ₹2,425

Hindustan Unilever has seen a strong sell-off from higher levels recently.

The stock is showing signs of support and has formed a bullish candle near key support levels, suggesting the possibility of a reversal if buying interest continues in this area.

A sustained movement above ₹2,530 could confirm the reversal and potentially trigger a rally towards the ₹Level 2,685.

The Relative Strength Index (RSI) stands at 31.40, with a positive crossover near the oversold zone.

This indicates strengthening momentum and supports the likelihood of an upward move if price action aligns.

Although Hindustan Unilever is trading below its major moving averages, including the 20, 50 and 200-day EMAs, the recent reversal suggests that the stock could retest these levels.

“A decisive close above ₹2,530 would present a buying opportunity, with technical indicators and momentum favoring a short-term bullish outlook, aiming for a move towards ₹2,685,” Bagadia said.

Larsen & Toubro | Buy for cash at ₹3,660.30 | Indicative price: ₹3,990 | Stop Losses: ₹3,505

Larsen & Toubro remains in a long-term uptrend. Over the past few months, the stock has consolidated in a wide range near its all-time highs.

Recently, it showed a reversal in its demand zone, supported by an increase in trading volumes, signaling renewed buyer interest and a potential resumption of the uptrend.

The relative strength index (RSI) stands at 59.49, indicating sideways to upward momentum. This reflects strengthening investor confidence and suggests the stock could continue its upward trend if positive momentum continues.

The stock is trading above its major moving averages, including the 20, 50, and 200-day EMAs, further supporting the bullish outlook.

“Given current technical indicators and price action, L&T appears well positioned for a potential upside move. Investors may consider buying at ₹3,660.30, with a stop loss set at ₹3,505 to manage risks. The target of ₹“3990 aligns with key resistance levels and offers a favorable risk-reward ratio, making it a promising trading opportunity with potential for further gains,” Bagadia said.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and brokerage firms, and not of Mint. We advise investors to consult certified experts before making any investment decisions.