Bullish Call: Analyst Suggests Zee Entertainment, Anant Raj, and Elgi Equipments as Potential Buys for Next Week

Indian Stock Market Ends in the Red as RBI Signals Slower Economic Growth and Higher Inflation

The Indian equity benchmarks, the Sensex and Nifty 50, ended in the red on Friday, as investors turned cautious following the Reserve Bank of India's (RBI) latest policy review. The RBI's announcement signalled slower economic growth and higher inflation in FY27, leading to a decline in investor sentiment. The BSE Sensex fell 116.67 points, or 0.16%, to close at 74,243.34, while the NSE Nifty 50 slipped 49.85 points, or 0.21%, to settle at 23,366.70.

The market remained volatile throughout the session, with the Sensex swinging more than 700 points between its intraday high of 74,717.57 and low of 73,988.75. Investor sentiment was further dampened by continued foreign institutional investor (FII) outflows, lingering geopolitical tensions, and weak cues from other Asian markets.

In its monetary policy announcement, the RBI left the repo rate unchanged at 5.25% and maintained its neutral policy stance. However, the central bank cut its FY27 GDP growth forecast to 6.6%, down from 6.9% previously and below the estimated 7.6% growth for FY26. The RBI also raised its FY27 inflation projection to 5.1%, citing upside risks from global commodity prices, supply-chain disruptions, and weather-related uncertainties. Inflation is expected to rise further, peaking at 5.9% in the third quarter of FY27, before easing.

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According to market experts, the combination of a softer growth outlook, elevated inflation expectations, and external uncertainties prompted profit-booking across sectors, keeping benchmark indices under pressure despite the central bank's decision to keep interest rates unchanged.

Stocks to Buy Next Week

Several stocks are expected to perform well in the coming week, according to market experts. Here are some of the top stocks to consider:

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These stocks have shown strong bullish sentiment and are expected to perform well in the coming week. Investors should consider buying, holding, and accumulating these stocks.

Zee Entertainment Enterprises Ltd has decisively surpassed the 100-level resistance zone on a closing basis, with heavy volumes indicating strong bullish sentiment. The stock is well placed above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs), which reconfirms bullish sentiment. The daily, weekly, and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames. The daily and weekly "Bollinger Band" buy signal shows increased momentum.

Anant Raj Ltd has decisively surpassed the past seven months' down-sloping trendline breakout at the 560 levels on a closing basis, accompanied by huge volumes. The daily and weekly "Bollinger Band" buy signal shows increased momentum. The daily, weekly, and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames. The stock is well placed above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs), which reconfirms bullish sentiment.

Elgi Equipments Ltd is trending higher, with higher tops and bottoms, indicating a strong uptrend. In addition, on the weekly chart, the stock is sustaining above the breakout of the "rounding bottom" formation at the 590 level, which signals a positive bias. Huge rising volumes on rallies signify increased participation. The stock is well placed above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs). These averages are also inching up alongside the price rise, which further confirms the bullish trend.