Sumeet Bagadia's Top Picks for Monday, September 30th

The Indian stock market experienced a correction on Friday, September 27th, snapping a six-day winning streak. The Nifty 50 closed 37 points lower at 26,178, while the Sensex fell 264 points to settle at 85,571. Despite this, Sumeet Bagadia, Executive Director at Choice Broking, maintains a bullish outlook on the market. He believes the Nifty 50 is poised to touch 26,900 in the near future, even with the recent pullback.

Bagadia recommends a “buy-on-dips” strategy for investors until the Nifty 50 surpasses the 26,000 mark. He identifies crucial support for the index at 25,800, which offers a potential buying opportunity if the market dips further.

Sumeet Bagadia’s Top Stock Picks for Monday, September 30th

Based on his analysis, Bagadia recommends three specific stocks for investors to consider on Monday:

1. Eicher Motors (Buy at ₹5062.60, Target ₹5300, Stop Loss ₹4900)

Eicher Motors’ stock has shown promising signs on the daily chart, indicating a potential upside trend in the coming days. After consolidating within a range for the past few months, the stock price is attempting a breakout above the ₹4900-₹5000 zone. A sustained move above this resistance level could be a significant bullish signal, potentially propelling the stock towards its target price of ₹5300.

2. Pidilite Industries (Buy at ₹3363.45, Target ₹3555, Stop Loss ₹3250)

Pidilite Industries has exhibited strong momentum and positive sentiment in recent high-volume trading sessions. The stock has been consolidating between ₹3200 and ₹3300, potentially forming a rising wedge pattern on the weekly chart – a bullish continuation pattern. Additionally, the stock comfortably trades above its crucial 20-day, 50-day, and 200-day exponential moving averages (EMAs), indicating a solid upward trend. The Relative Strength Index (RSI), a momentum indicator, currently sits at 65, further signifying positive momentum.

Given Pidilite Industries’ ability to stay above support levels during potential pullbacks, the technical analysis suggests a strong setup for further advancement. Investors who entered the market at lower levels can consider using trailing stop-loss orders to manage risk as the stock approaches its target of ₹3555.

3. Cipla (Buy at ₹1672.50, Target ₹1777, Stop Loss ₹1616)

Cipla’s share price has been on an uptrend, moving steadily upwards from support levels around ₹1600, close to its 50-day EMA. This upward momentum is further confirmed by the stock’s position above all three EMAs (20-day, 50-day, and 200-day), highlighting its technical strength. A decisive breakout above the resistance level of ₹1699, with strong trading volume, could propel the stock towards its target price of ₹1777. For investors who bought in earlier, trailing stop-loss orders can be used to protect profits while aiming for higher targets. The RSI for Cipla stands at 60, indicating continued positive momentum.

Fundamental Analysis: While this article focuses on Bagadia’s technical analysis, investors should also consider the companies’ fundamentals, including financial health, growth prospects, and competitive advantages.
Market Conditions: The overall market sentiment can impact individual stocks. While Bagadia is bullish on the Indian market, external factors can still influence stock prices.
Diversification: It’s essential to diversify your portfolio across various sectors and asset classes to mitigate risk.

By combining technical analysis with fundamental research and maintaining a diversified portfolio, investors can make informed decisions and potentially increase their chances of success in the Indian stock market.