Stock Market Outlook: Nifty and Sensex in Correction, 5 Stocks to Watch on Monday – Nov 18

The stock market faced a tough week ending November 14, with both the Nifty-50 Index and S&P BSE Sensex dropping around 2.5% from the previous week. The Bank Nifty saw a bigger correction, falling over 3%, while other sectors like Auto, Metals, and FMCG ended lower. The broader market, including mid and small-cap stocks, also struggled, with losses over 4%. On a positive note, IT stocks held steady despite the market’s overall weakness.

Trade Setup for Monday:

The market is currently in a weak but oversold state. For traders with longer positions, the key support levels to watch are 23,500 for Nifty and 77,400 for the Sensex, as these levels should hold. If the market moves above these points, there could be a short-term rally, with Nifty potentially reaching 23,800-24,000 and Sensex moving to 78,500-79,000.

For Bank Nifty, the downside target is 49,700, while resistance on the upside is between 50,560 and 50,700.

Global Market Outlook and US Dollar Impact:

Asian markets remained weak, and European and US markets also ended the week with losses. Domestic market sentiment has been affected by weak Q2 results, continued foreign fund outflows, and rising concerns over inflation, which hit a 14-month high at 6.2%. A strong dollar and increasing US treasury yields have added to market volatility.

“Nifty fell for the second consecutive week, marking a 2.55% decline, as India’s corporate earnings failed to meet expectations. This, along with the strengthening dollar and rising US bond yields, pressured emerging market stocks,” said Deepak Jasani from HDFC Securities.

Stocks to Watch on Monday:

Sumeet Bagadia from Choice Broking recommends:

1. Garware Hi-Tech Films – Buy at ₹4,275.80, Target ₹4,600, Stop Loss ₹4,125
   The stock is showing strong momentum and has broken through a key resistance level, indicating a potential uptrend.
2. Gokul Agro Resources – Buy at ₹318.40, Target ₹340, Stop Loss ₹306
   The stock has shifted from a consolidation phase to a potential upward movement, backed by strong volume and bullish sentiment.

Ganesh Dongre from Anand Rathi recommends:

3. Info Edge (NAUKRI) – Buy at ₹7,770, Target ₹8,100, Stop Loss ₹7,600
   The stock is showing signs of an upward reversal and has solid support at ₹7,600.
4. TVS Motor Company – Buy at ₹2,396, Target ₹2,475, Stop Loss ₹2,335
   TVS Motor is showing a bullish reversal pattern, and the price could rise to ₹2,475.
5. Cummins India – Buy at ₹3,330, Target ₹3,400, Stop Loss ₹3,275
   The stock has broken through a key level, signaling upward momentum. The RSI indicates increasing buying strength.

These stock recommendations are based on technical analysis and may provide opportunities for short-term gains as the market continues to correct.