Indian stock market saw a decline for the second day in a row on Friday, with both Sensex and Nifty 50 closing over half a percent lower each due to the escalating conflict between Israel and Iran. Sensex dropped 573.38 points to close at 81,118.60, while Nifty 50 settled 169.60 points lower at 24,718.60. Bank Nifty index also slipped by 555.20 points to end at 55,527.35.

For the week, Sensex declined by 1.30%, Nifty 50 fell by 1.13%, and Bank Nifty plunged by 1.86%.

Stock Market Outlook for Next Week

The benchmark Nifty 50 is currently above the 24,700 level, with the next support around 24,500. Sumeet Bagadia, Executive Director at Choice Broking, mentioned that the market sentiment has turned cautious due to the Israel-Iran war buzz. He warned that if the key benchmark index breaks below 24,500 on a closing basis, the market bias may turn weak.

Stock Recommendations

Sumeet Bagadia has recommended three stocks to buy on Monday, 16 June 2025. The three stock picks are Hindustan Aeronautics (HAL), Tech Mahindra, and Muthoot Finance shares.

• HAL | Buy at ₹ 5,026 | Target Price: ₹ 5,530 | Stop Loss: ₹ 4,780

HAL share price has shown a strong reversal from lower levels, indicating a strengthening bullish trend. The Relative Strength Index (RSI) is at 57.83, suggesting a bullish reversal. HAL is trading comfortably above all key moving averages, indicating a bullish structure.

• Tech Mahindra | Buy at ₹ 1,659 | Target Price: ₹ 1,820 | Stop Loss: ₹ 1,590

Tech Mahindra share price has formed a bullish Cup and Handle pattern, signaling a trend reversal. The breakout from this formation, along with rising momentum indicators and strong volume participation, sets up a favorable risk-reward opportunity.

• Muthoot Finance | Buy at ₹ 2,598.70 | Target Price: ₹ 2,870 | Stop Loss: ₹ 2,460

Muthoot Finance share price has broken out above a consolidation range, backed by strong momentum. The setup looks favorable for a potential upside move towards higher targets in the near term.