The Indian equity benchmarks ended the week with a 1% rise, supported by strong buying in automobile and consumer stocks after expectations of increased demand from recent GST revisions announced on August 15, 2025. Positive sentiment was further boosted by S&P’s upgrade of India’s sovereign credit rating.
However, Friday’s session saw both NSE and BSE indices retreat, as investors turned cautious ahead of U.S. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium.
Market Outlook
According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 is currently at a critical juncture. The index has immediate support around its 50-day exponential moving average (DEMA) at 24,820, while resistance is seen at 25,150.
Bagadia noted that a decisive move above 25,200 on a closing basis could open the door for further upside momentum, whereas a break below the support zone might tilt sentiment bearish.
Stock Recommendations by Choice Broking
Bagadia advised traders to focus on stock-specific opportunities rather than chasing the broader index. He highlighted three counters with favorable technical setups:
1. Mahindra & Mahindra (M&M)
- Buy Level: ₹3,403
- Target: ₹3,650
- Stop Loss: ₹3,280
M&M is trading above its short-term and medium-term moving averages, reflecting strength in its trend. A breakout above the ₹3,600–3,650 band could extend the rally, with strong support established near the 20-day EMA.
2. Bharti Airtel
- Buy Level: ₹1,933
- Target: ₹2,070
- Stop Loss: ₹1,860
Airtel has been consolidating after an earlier rally. The stock is comfortably positioned above its 20-day and 50-day EMAs, suggesting resilience. A move past ₹1,970–1,980 may accelerate gains towards the target zone.
3. Sun Pharma
- Buy Level: ₹1,641
- Target: ₹1,760
- Stop Loss: ₹1,585
After a recent pullback, Sun Pharma has shown signs of recovery from the ₹1,600 support region. Sustaining above its near-term moving averages could attract fresh buying interest, with the potential to rally towards ₹1,710 initially and then ₹1,760.
Outlook for Investors
While overall sentiment remains cautious, analysts believe opportunities exist in selective stocks showing strength on technical charts. Market direction in the coming week may depend on global cues, particularly signals from the U.S. Federal Reserve, along with investor response to domestic policy changes.
