Question

take a small stone . hold it in your hand.which force are acting on a the stone?

Answer 1

On hold - net force is towards downward ,

when release - still net force towards downwards

Answer 2

The force of gravity (by Earth) is acting downwards perpendicular to the centre of gravity of that stone.
The normal reaction force from your hand is acting on the stone, upwards, perpendicularly to the same centre of the stone.

Since you're holding the stone, both of these forces are of the same magnitude and act opposite to each other at the junction of the stone.