Indian stock market extended its fall for the second consecutive session on Friday, with both the benchmark indices, Sensex and Nifty 50, closing over half a percent lower each, as escalating conflict between Israel and Iran triggered risk-off sentiment.

The Sensex dropped 573.38 points, or 0.70%, to close at 81,118.60, while the Nifty 50 settled 169.60 points, or 0.68%, lower at 24,718.60. Bank Nifty index slipped 555.20 points, or 0.99%, to end at 55,527.35.

For the week, the Sensex declined 1.30%, Nifty 50 fell 1.13%, and the Bank Nifty plunged 1.86%.

Stock market next week

The benchmark Nifty 50 held above the 24,700 level, while the next support lies around 24,500 level.

“The Indian stock market sentiment has turned cautious as the Nifty 50 index has made a new support at 24,000 while its immediate support placed at 24,500 looks vulnerable due to the Israel-Iran war buzz,” said Sumeet Bagadia, Executive Director at Choice Broking.

According to him, the market bias may turn weak once the key benchmark index breaks below 24,500 on a closing basis.

Stocks to buy

Sumeet Bagadia has recommended three stocks to buy on Monday, 16 June 2025. The three stock picks by Bagadia are Hindustan Aeronautics (HAL), Tech Mahindra and Muthoot Finance shares.

Here are the three stocks to buy on Monday:

HAL | Buy at ₹5,026 | Target Price: ₹5,530 | Stop Loss: ₹4,780

HAL share price has exhibited a strong reversal from lower levels, forming higher highs and higher lows on the daily timeframe — a classic indicator of a strengthening bullish trend. This price structure reflects sustained buying interest and growing investor confidence, especially after the stock rebounded strongly from its key demand zones.

The Relative Strength Index (RSI) is currently at 57.83 and is showing signs of a bullish reversal, trending upwards and suggesting rising momentum. Technically, HAL is trading comfortably above all its key moving averages — including short-term, medium-term, and long-term EMAs (Exponential Moving Average) — which further strengthens the overall bullish structure and trend alignment.

The setup indicates that a sustained breakout above the current consolidation range could trigger a fresh upward move. Structurally, the chart pattern and momentum indicators point toward a continuation of the uptrend, provided key levels hold firm.

Given the improving momentum, solid support structure, and technical alignment, traders may consider buying HAL shares at the current market price, with a stop-loss placed at ₹4,780 to manage downside risk. A successful breakout could pave the way for an upside move toward the HAL share price target of ₹5,530 in the near term, offering a favorable risk-reward opportunity for positional traders, Bagadia said.

Tech Mahindra | Buy at ₹1,659 | Target Price: ₹1,820 | Stop Loss: ₹1,590

Tech Mahindra share price has witnessed a strong recovery after a recent decline, forming a bullish Cup and Handle pattern on the daily timeframe — an encouraging sign of a trend reversal and potential upside continuation. The stock has successfully broken out of this formation, supported by consistent trading volumes, which adds conviction to the breakout’s strength and sustainability.

Structurally, the breakout from the Cup and Handle pattern, rising momentum indicators, and strong volume participation all point to a favorable risk-reward setup. This positions Tech Mahindra stock well for a potential follow-through rally, provided it continues to hold above the breakout zone, Bagadia said.

According to Bagadia, traders may consider buying Tech Mahindra shares at the current market price, with a stop-loss placed at ₹1,590. A sustained move higher could see Tech Mahindra shares rally toward the target of ₹1,820, offering a promising short- to medium-term trading opportunity.

Muthoot Finance | Buy at ₹2,598.70 | Target Price: ₹2,870 | Stop Loss: ₹2,460

Muthoot Finance share price has recently broken out decisively above this consolidation range, backed by strong momentum. This breakout signals the possibility of a fresh leg up, and if the stock manages to sustain above the breakout zone, it could continue its upward journey toward higher targets in the near term.

Structurally, the setup looks favorable with a breakout confirmation, rising momentum, and solid price structure. The technical alignment offers a compelling risk-reward ratio for positional traders and short-term participants alike.

Traders may consider buying Muthoot Finance shares at the current market price, with a stop-loss placed at ₹2,460 to limit downside risk. A sustained move could drive Muthoot Finance stock toward its short-term target of ₹2,870, with potential for further upside if momentum persists.

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