Buy or sell stocks: Hurt by the imposition of higher tariffs by the US and foreign fund outflows, the Indian benchmark indices — Sensex and Nifty — ended lower for the third session in a row on Friday, taking their weekly loss to 1.8%.

Sensex and Nifty lost 0.3% each in trade on Friday, ending the month of August in the red. While the BSE barometer Sensex lost 1.7% for the month, Nifty 50 declined 1.4%. This follows a 3% decline in July.

The imposition of an additional 25% tariff on Indian goods on Wednesday by the US, over the purchase of Russian oil, effectively doubled the earlier 25% duty.

Also Read | Sensex, Nifty fall for 3rd consecutive session — 10 key highlights

Meanwhile, foreign investors have pulled out $3.3 billion from Indian stocks in August, according to a Reuters report, the heaviest outflow since February, as tariff woes and weak corporate earnings dragged.

Stock market next week

Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment could remain weak as benchmark indices have broken below the key levels. He advises adopting a stock-specific approach to investing in the current market environment.

Speaking on the outlook of the Indian stock market, Bagadia said, “The Indian stock market sentiment has weakened as the Nifty 50 index has ended below 24,500. The key benchmark index now has immediate support placed at 200-DEMA of 24,000. So, one should maintain a stock-specific approach and look at those stocks that are looking strong on the technical chart.”

Also Read | Nifty ends below 100 EMA: Will bears retain control of Indian market?Sumeet Bagadia stock picks for Monday

As Bagadia recommended looking at counters with a strong technical setup, he has shared three stocks to buy: Colgate, Dalmia Bharat and Asian Paints.

1. Colgate-Palmolive | Buy at ₹2331.80 | Target Price: ₹2600 | Stop loss: ₹2200

Colgate-Palmolive is currently trading at ₹2,331.80, after witnessing a prolonged bearish trend over the past few months. On the daily chart, the stock had been moving within a falling trend line pattern but has recently broken out of this formation and successfully retested the breakout zone, indicating renewed strength. If COLPAL sustains above the breakout levels and manages to cross the ₹2,400 mark, it could accelerate further on the upside.

Momentum indicators support this view, with the Relative Strength Index (RSI) at 56.32, showing a reversal and trending upwards, highlighting improving momentum. Moreover, the stock has surpassed its short-term and medium-term EMAs and is now eyeing its long-term EMA, reflecting a potential shift in trend structure.

Given this emerging setup, traders may consider buying COLPAL at the current market price of ₹2,331.80, with a stop-loss placed at ₹2,200. A sustained move could take the stock higher towards the ₹2,600 target in the near term.

2. Dalmia Bharat | Buy at ₹2401.50 | Target Price: ₹2660 | Stop loss: ₹2270

Dalmia Bharat is currently trading at ₹2,401.50, maintaining a strong upward trend characterised by higher highs and higher lows on the daily timeframe. Since January 2024, the stock has been forming a large Rounding Bottom pattern, reflecting steady accumulation and sustained buying interest. It is now approaching the breakout level of this formation, and a sustainable move above ₹2,430 would confirm the breakout and signal the continuation of its bullish trajectory toward higher levels.

Also Read | Rajesh Palviya of Axis Sec suggests these 3 shares to buy today

Momentum indicators align with this view, as the Relative Strength Index (RSI) stands at 70.99, trending firmly upwards and highlighting strong momentum. Additionally, Dalmia Bharat is comfortably trading above all its key moving averages—short-term, medium-term, and long-term—underscoring the robust underlying strength and supportive trend structure.

Given the favourable setup, traders may consider buying Dalmia Bharat at the current market price of ₹2,401.50, with a stop-loss placed at ₹2,270. A confirmed breakout could propel the stock toward the ₹2,660 target in the near term.

3. Asian Paints | Buy at ₹2518.60 | Target Price: ₹2770 | Stop loss: ₹2390

Asian Paints is currently trading at ₹2,518.60 and has been moving within a broad trading range over the past few months, while consistently forming higher highs and higher lows on the daily timeframe. Recently, the stock found support near its demand zones and is now showing signs of continuation within this bullish structure. A sustainable move above ₹2,600 would confirm a fresh higher high and open room for further upside momentum.

Momentum indicators support this outlook, with the Relative Strength Index (RSI) at 57.17, reversing from lower levels and trending upward, indicating strengthening momentum. Moreover, Asian Paints has taken support from both its short-term and long-term EMAs and is comfortably trading above all its key moving averages, suggesting robust underlying strength.

Considering the emerging setup, traders may look to buy Asian Paints at the current market price of ₹2,518.60, with a stop-loss placed at ₹2,390. A sustained breakout could lift the stock toward the ₹2,770 target in the near term.

Disclaimer: The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.