Indian equity benchmarks closed in negative territory for the third consecutive session on Friday, weighed down by weak global cues, higher U.S. tariffs, and persistent foreign fund outflows. The Sensex and Nifty slipped 0.3% each in the day’s trade, extending their weekly loss to 1.8%.
On a monthly basis, the Sensex dropped 1.7% in August, while the Nifty fell 1.4%. This marked the second straight month of declines after July’s 3% fall.
The pressure on markets intensified after Washington imposed an additional 25% duty on Indian goods earlier this week in response to New Delhi’s purchase of Russian crude. With this move, the effective tariff burden has doubled to 50%. Alongside trade concerns, foreign investors pulled out around $3.3 billion from Indian equities in August, the sharpest monthly outflow since February, according to Reuters.
Market Outlook
Sumeet Bagadia, Executive Director at Choice Broking, cautioned that sentiment remains fragile as key benchmarks have slipped below crucial support levels. “Nifty closing under 24,500 has weakened the overall setup. The immediate support is now at 24,000, which coincides with the 200-day exponential moving average. Investors should adopt a stock-specific approach in the current environment,” he advised.
Bagadia’s Stock Picks for Monday
Bagadia highlighted three counters showing strength on technical charts:
1. Colgate-Palmolive (₹2,331.80)
- Target: ₹2,600
- Stop-loss: ₹2,200
After breaking out from a falling trend line and retesting the breakout zone, Colgate is showing signs of renewed momentum. The RSI at 56 indicates strengthening momentum, while the stock trades above its short- and medium-term EMAs.
2. Dalmia Bharat (₹2,401.50)
- Target: ₹2,660
- Stop-loss: ₹2,270
The stock has been on an upward trajectory, forming a rounding bottom pattern since January 2024. A move above ₹2,430 would confirm a breakout. RSI at 71 signals strong bullish momentum, with the stock holding above all key moving averages.
3. Asian Paints (₹2,518.60)
- Target: ₹2,770
- Stop-loss: ₹2,390
Trading within a broad range but maintaining higher highs and higher lows, Asian Paints has found support near demand zones. A close above ₹2,600 could trigger further upside. RSI at 57 reflects improving momentum, supported by strength across moving averages.
With global uncertainties and weak investor sentiment weighing on indices, analysts recommend caution but see selective opportunities in technically strong stocks.