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

Market Recap and Outlook

Despite global market jitters, the Indian stock market closed lower on Friday, September 27th. However, Sumeet Bagadia, Executive Director at Choice Broking, remains bullish on the long-term outlook. He believes the Nifty 50 will reach 26,900 despite the recent dip. Investors are advised to maintain a buy-on-dips strategy with support at 25,800 for the Nifty 50.

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

Eicher Motors (₹5062.60):
- Target: ₹5300
- Stop Loss: ₹4900

Eicher Motors’ daily chart suggests an upside bounce. The stock has been consolidating for months but is attempting a breakout above the ₹4900-₹5000 range. A confirmed breakout could propel the price to ₹5300.

Pidilite Industries (₹3363.45):
- Target: ₹3555
- Stop Loss: ₹3250

Pidilite Industries has displayed strong momentum and positive volume. Recent consolidation around ₹3200-₹3300 suggests a potential breakout, further emphasized by a rising wedge pattern on weekly charts. The stock trades above crucial 20, 50, and 200-day EMAs and has a healthy RSI of 65. Investors should consider trailing stop losses near ₹3250 for risk management.

Cipla (₹1672.50):
- Target: ₹1777
- Stop Loss: ₹1616

Cipla exhibits a clear uptrend from support levels around ₹1600. The stock is positioned above its short, mid, and long-term EMAs, indicating technical strength. A breakout above ₹1699 with strong volume could lead to a surge towards ₹1777. Existing investors should utilize trailing stop losses near ₹1616, while new investors can enter at current market price with a stop loss at ₹1616. The RSI of 60 suggests positive momentum.

Analysis

Sumeet Bagadia’s picks focus on stocks with bullish technical indicators and recent positive momentum. Eicher Motors and Cipla are attempting breakouts from consolidation patterns, suggesting potential for further upside. Pidilite Industries displays strong technicals with a rising wedge pattern and a healthy RSI, indicating a possible continuation of the uptrend.