Sumeet Bagadia's Bullish Picks: 3 Stocks to Buy on Monday

Market Overview

The Indian stock market concluded the previous week on a negative note, marking its fourth consecutive session of decline. The Nifty 50 index shed 218 points, closing at 24,180, while the Sensex lost 662 points to settle at 79,402. The Nifty Bank index experienced a significant drop of 746 points, ending at 50,787.

Sumeet Bagadia’s Perspective

Sumeet Bagadia, Executive Director at Choice Broking, expressed a cautious outlook on the market, citing the Nifty 50 index’s breach of the 24,700 level as a bearish signal. He identified immediate support at 23,900 and resistance in the 24,600-24,650 range. Bagadia warned that a further decline below 23,900 could exacerbate the downward trend.

Bagadia’s Top 3 Stock Picks

Despite the overall market weakness, Bagadia remains optimistic about the following three stocks:

1. ITC Ltd.

Buy Price: ₹482.30
Target Price: ₹516
Stop Loss: ₹466

ITC has recently rebounded from the ₹470 support level and is currently trading at ₹482.30. The stock’s daily chart shows a positive candle, indicating potential bullish momentum. Rising trading volumes further support this bullish outlook. A sustained move above the ₹500 level could propel the stock towards the ₹516 target. The RSI of 39.64 suggests oversold conditions, making it an attractive buying opportunity. Additionally, the stock’s position above the 200-day EMA reinforces the bullish sentiment.

2. Tata Consultancy Services (TCS)

Buy Price: ₹4057.55
Target Price: ₹4342
Stop Loss: ₹3916

TCS has undergone a 12.75% correction from its all-time high and is currently consolidating above its 200-day EMA. A break above the ₹4,060 level could trigger a bullish reversal, with an initial target of ₹4,342. The RSI of 32.55 indicates oversold conditions, presenting a potential buying opportunity. Increased trading volumes on bullish days around the support level would further strengthen the reversal.

3. Axis Bank

Buy Price: ₹1189.20
Target Price: ₹1300
Stop Loss: ₹1120

Axis Bank has recently rebounded from its low of ₹1,124, indicating strong buying interest. The stock is trading above its 100-day and 200-day EMAs, signifying underlying strength. A break above the ₹1,214 resistance level could lead to an upside target of ₹1,300. The RSI of 51.22, trending upward, reflects growing buying momentum.