The Indian stock market stands at a critical juncture, facing multiple potential challenges that could trigger a significant market correction. Investors are navigating a complex landscape marked by year-end mutual fund portfolio adjustments, foreign institutional investor profit booking, geopolitical tensions, and uncertainties surrounding global economic policies.
The Nifty index faces potential volatility from factors including Federal Reserve decisions, Middle East instability, rupee depreciation, and upcoming corporate quarterly results, creating an atmosphere of cautious anticipation among market participants.
This has resulted in the NIFTY 50 turning highly bearish in the recent past as the index witnessed a massive sell-off from the high of 26,277 to 23,070 level.
Buying at Support
Buying stocks trading at strong support levels during a market sell-off is a contrarian strategy that capitalizes on market overreactions. When stocks hit key support levels, they are often oversold, creating an opportunity for investors to enter at lower prices.
The strategy involves identifying stocks with solid fundamentals that have been unfairly punished in a broad market decline. Investors use this approach to play a potential bounce-back or trend reversal, betting that the market will correct itself, and stock prices will rise. By purchasing near support, investors aim to benefit from price rebounds once market sentiment stabilizes.
4 Stocks Trading at or near strong support zones are listed below:
Sun Pharma Limited
Sun Pharmaceuticals is a leading CDMO and pharmaceutical company and is part of Nifty 50. Currently, the stock is trading close to its strong support of Rs. 1,728 if this support is breached the second major looks to be at Rs. 1,630. Additionally, the stock has taken support twice at the 1,728 level.
VA Tech Wabag Limited
VA Tech Wabag is a global water treatment and management solutions provider, specializing in the design, engineering, and construction of water and wastewater treatment plants. With a robust international presence, VA Tech Wabag is a key player in the water infrastructure industry, delivering innovative solutions for water conservation and treatment. The stock is trading close to its strong support level of Rs. 1, 452 which earlier used to be a strong resistance. Additionally, VA Tech Wabag’s second strong support lies at Rs. 1,197 level indicating a gap of more than 20% between the 2 support levels. The stock is coming to its strong support level for the first time since October 2024.
Mazgaon Dock Shipbuilders Limited
Mazdock is a leading shipbuilding and engineering company in India, known for its expertise in constructing advanced naval and commercial vessels. It is a key player in the defense and maritime sectors, catering to both government and private clients. The stock has strong support at the level of Rs 1, 927 from which the share had bounced earlier twice. Besides this, the second support for this stock lies at Rs.1,700. The stock has never breached the 1,927 support from the time it crossed it in 2024
Adani Ports & SEZ Limited
Adani Ports is a prominent player in India’s logistics and infrastructure sector, known for its extensive network of ports and terminals. The stock has strong support at the level of Rs. 1,068, from which it has bounced multiple times in the past. The second support level for this stock is at Rs. 980. Since 2024, the stock has never breached the Rs. 980 support, demonstrating its resilience at these key price levels. However, the Rs. 1,068 support was breached once in October when there was news regarding Adani group socks about the bribery case in the United States.
Written By: Dipangshu Kundu
