Buy or sell stocks: The Indian stock market witnessed sharp declines, with the benchmark Nifty 50 falling below the 23,000 mark, on Friday last week, amid ongoing geopolitical tension in the Middle East, rising crude oil prices and continuous foreign fund outflows.

The BSE Sensex plunged 1,690.23 points, or 2.25%, to close at 73,583.22, while the Nifty 50 dropped 486.85 points, or 2.09%, to settle at 22,819.60.

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Nifty 50

On Friday, the Nifty 50 opened on a negative note with a gap-down of 132.90 points at 23,173.55. The index recorded its intraday high near the opening level at 23,186.10, indicating immediate selling pressure. Throughout the session, the market remained under pressure, registering a low of 22,804.55 and eventually closing at 22,819.60. This marked a sharp decline of 486.85 points, or 2.09%, reflecting weak market sentiment and sustained selling activity.

On the Nifty 50 outlook, Sumeet Bagadia, Executive Director at Choice Broking, said, “ From a technical perspective, the 22,650–22,700 zone is expected to act as a crucial support area for the index. On the upside, immediate resistance is placed in the 22,950–23,000 range. The momentum indicator RSI is currently at 35.76. Although early signs of recovery are visible, the RSI remains below the midpoint level of 50, indicating that momentum continues to be weak. A sustained move above 50 would be required to confirm any strengthening in bullish momentum.”

Bagadia further recommended traders to remain cautious and trade within the defined support and resistance levels. It is prudent to wait for a decisive breakout in either direction before initiating fresh directional positions.

Bank Nifty

Similarly, the Bank Nifty index opened lower with a gap-down of 463.85 points at 53,244.25, on Friday. The intraday high remained close to the opening level at 53,292.50, reflecting early selling pressure. The index continued to witness heavy selling throughout the session, touching a low of 52,211.20 and closing at 52,274.60. This resulted in a decline of 1,433.50 points, or 2.67%, indicating broad-based weakness in the banking sector.

On the Bank Nifty outlook, Bagadia said, “From a technical standpoint, the index is expected to find support in the 51,900–52,000 range, while resistance is seen in the 52,500–52,600 zone. The RSI currently stands at 33.43, showing initial signs of recovery; however, it remains below the key 50 level, suggesting that momentum is still weak. A sustained move above this level would be necessary to confirm any improvement in trend strength.”

Traders are advised to remain cautious around these key levels and wait for a clear and decisive breakout on either side before taking fresh directional positions, he added.

Sumeet Bagadia’s stocks to buy

Sumeet Bagadia recommends five shares to buy on Monday, March 30: National Aluminium Co, NLC India, Honasa Consumer, Ather Energy, and Aurobindo Pharma.

1] National Aluminium Co: Buy at ₹371, Target ₹397, Stop Loss ₹358

National Aluminium Co share price is currently trading at 371, exhibits a resilient technical setup as it consolidates within a well-defined bullish structure on the daily chart. The price action recently bounced off its 50-day EMA near 360, signaling that buyers are defending key support levels despite recent volatility. Currently, the stock is trading comfortably above its 50, 100, and 200-day EMA lines, maintaining its long-term upward trajectory. The RSI is hovering at 50.14, suggesting a neutral to positive momentum shift with significant room to expand as the trend strengthens. This stabilization suggests the stock is preparing for a fresh leg toward the resistance zone. Exit Plan: Maintain a strict stop loss at 358 to protect capital, aiming for a primary target of 397.

2] NLC India: Buy at ₹270.40, Target ₹290, Stop Loss ₹260

NLC India is currently trading at 270.4, demonstrating a significant momentum shift on the daily chart as it breaks out from a tight consolidation zone. The price action reflects a bullish reclaim of all major exponential moving averages, with the 20-day EMA crossing above the 50 and 100-day EMAs in a positive crossover. Currently, the stock is trading comfortably above its 20, 50, 100, and 200-day EMA lines, indicating a strong transition from a sideways phase to a potential trending move. The RSI has surged to 57.97 and is trending upward, suggesting that buying pressure is intensifying without reaching overbought conditions. This breakout above immediate resistance suggests a clear path toward previous swing highs as the trend matures. Maintain a strict stop loss at 260 to protect capital, aiming for a primary target of 290.

3] Honasa Consumer: Buy at ₹298.25, Target ₹320, Stop Loss ₹287.81

Honasa Consumer share price is currently trading at 298.25, the stock is showing signs of structural improvement on the daily chart as it enters a phase of steady accumulation. The price action recently bounced off its core moving average cluster, indicating that the stock is finding support near its 20 and 50-day EMAs. While the stock is currently navigating a sideways range, the formation of higher lows suggests a gradual absorption of supply. The RSI is trending at 56.90 and moving upward, reflecting a positive shift in momentum that favours the buyers. A sustained move above the immediate resistance could confirm a breakout from this consolidation zone toward previous highs. Maintain a strict stop loss at 287.81 to protect capital, aiming for a primary target of 320.

4] Ather Energy: Buy at ₹796.35, Target ₹853, Stop Loss ₹768

Ather Energy is currently trading at 796.35 and exhibits a powerful bullish trajectory on the daily chart, recently surging to hit a fresh all-time high of 802.90. The price action confirms a high-conviction breakout, supported by a significant rise in delivery volumes and a gap-up opening that signals strong institutional participation. The stock is perfectly aligned above its 20, 50, 100, and 200-day EMA lines, with the short-term averages fanning out to confirm a dominant uptrend. The RSI is currently at 68.84, reflecting robust buying momentum that is on the verge of entering the overbought zone, suggesting that while the trend is strong, the stock is in a high-velocity. This breakout above the its resistance level clears the path for a move toward the psychological mark. Maintain a strict stop loss at 768 (near the 20-day EMA) to protect gains, aiming for a primary target of 853.

5] Aurobindo Pharma: Buy at ₹1314.20, Target ₹1407, Stop Loss ₹1268

Aurobindo Pharma share price is trading around 1314.2 and is showcasing a significant bullish breakout on the daily chart as it successfully clears a multi-month consolidation zone. The price action reflects a strong structural shift, with the stock recently reclaiming its 20, 50, 100, and 200-day EMA lines, which are now providing a solid foundation for the current move. A surge in buying interest is evident through the series of higher highs, suggesting that the “higher bottom” formed near 1,200 has fuelled a fresh leg of momentum. The RSI is currently positioned at 63.55, indicating strong bullish strength that remains well below the overbought threshold, allowing for further price appreciation. This breakout above the 1,300 resistance level clears the path for the stock to challenge its previous swing highs. Maintain a strict stop loss at 1268 to protect capital, aiming for a primary target of 1407.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.