The Indian stock market has shown a dynamic pattern in the week preceding August 25, 2025, marked by a 1% increase in both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). This positive movement can be attributed to significant advancements in the automobile and consumer sectors, fueled largely by anticipated demand stemming from recent changes in the Goods and Services Tax (GST), announced on August 15, 2025. Additionally, an upgrade to India’s sovereign rating by S&P has further bolstered investor sentiment.
Market Overview
Despite the overall optimistic outlook, Friday saw a slight decline in the benchmark indexes. Investors exhibited caution ahead of US Federal Reserve Chair Jerome Powell’s anticipated address at the annual Jackson Hole symposium, a key event that often influences global monetary policy discussions. Sumeet Bagadia, the Executive Director at Choice Broking, noted the cautious sentiment prevailing in the Indian stock market, particularly as the Nifty 50 index ended the week near crucial support levels.
According to Bagadia, the Nifty 50 index finds itself at an immediate hurdle around 25,200. If this level is broken on a closing basis, it could pave the way for a robust rally in the index. Conversely, the market is also flirting with support near 24,820, establishing a critical range for traders to watch. A decisive break on either side will set the tone for upcoming trends.
Recommended Stocks to Buy
In light of current conditions, Bagadia has identified three specific stocks for investors to consider buying on Monday, August 25, 2025:
1. Mahindra & Mahindra (M&M)
- Buy Price: ₹3,403
- Target Price: ₹3,650
- Stop Loss: ₹3,280
M&M is positioned favorably, trading above its key moving averages such as the 20-day EMA and the 50-day EMA. This indicates a bullish trend. The stock has shown recent strength, with sustained buying activity near critical support levels. A breakout beyond ₹3,600-3,650 would be pivotal for a continued upward trajectory.
2. Bharti Airtel
- Buy Price: ₹1,933
- Target Price: ₹2,070
- Stop Loss: ₹1,860
Bharti Airtel is currently undergoing a consolidation phase after a strong rally earlier in the year. Holding firm above major support levels, the stock’s immediate resistance lies around ₹1,970–1,980. A successful move above that range could propel the stock towards its target of ₹2,070. Conversely, if it slips below ₹1,860, it may face near-term challenges.
3. Sun Pharma
- Buy Price: ₹1,641
- Target Price: ₹1,760
- Stop Loss: ₹1,585
Sun Pharma is attempting to stabilize after a corrective phase. With a recent rebound from the ₹1,610-1,600 support zone, there are signs of growing demand. The stock is close to its 20-day EMA, suggesting that if it can sustain this momentum and move past its key moving averages, it has the potential to rally towards its target of ₹1,760.
Market Outlook
Investors are advised to approach the market with discretion, closely monitoring technical indicators and market sentiment. The cautious stance seen in recent sessions emphasizes the importance of staying informed on both domestic and international developments. The potential impact of Powell’s speech on interest rates and economic outlooks will likely provide further direction.
The recommended stock picks showcase Bagadia’s focus on stocks that not only exhibit solid technical formations but also show resilience amid market fluctuations. As always, while these recommendations provide a roadmap for potential entry points, it is essential for investors to conduct their own due diligence or consult with certified financial advisors before executing trades.
Conclusion
The Indian stock market continues to navigate a complex landscape, influenced by both domestic reforms and global economic signals. Sumeet Bagadia’s recommendations on Mahindra & Mahindra, Bharti Airtel, and Sun Pharma reflect this nuanced environment, encouraging a stock-specific approach in a time of unpredictable volatility. As the market braces for potential shifts after the Jackson Hole symposium, investors should remain adaptable and vigilant, focusing on stocks that demonstrate robust trends and solid fundamentals.
The journey ahead holds both opportunities and challenges, and an informed, cautious stance will be crucial for sustained investment success.
