Indian Stock Market Continues Losing Streak, Analyst Recommends Buy on Axis Bank, Dr Reddy's Labs, and Indus Towers

The Indian stock market's losing streak continued for its fifth straight week due to various global headwinds, causing sentiment to remain fragile. The Nifty50 index dropped by over 2% and settled at 23,398 while the Sensex shed nearly 2.27% to close at 74,781.

Crude oil prices remained high near $105 a barrel due to supply concerns and geopolitical tensions, posing a threat to India's economy which relies heavily on energy imports. This has kept inflation risks alive and put pressure on the current account.

Sumeet Bagadia, Executive Director at Choice Broking, believes that the Indian stock market will maintain a sideways bias but is showing signs of a turnaround based on technical chart patterns. He predicts the Nifty 50 index to remain within the range of 23,250-23,600 in the next session.

Bagadia recommends three stocks to buy: Axis Bank, Dr Reddy's Labs, and Indus Towers. Axis Bank is consolidating near a major rising trendline support, with a target price of ₹1,375 and stop loss at ₹1,180. Dr Reddy's Labs is attempting to form a base after a corrective phase, with a target price of ₹1,290 and stop loss at ₹1,100. Indus Towers' share price is reversing from a key consolidation zone, with a target price of ₹425 and stop loss at ₹368.