Buy or sell stocks: The Indian stock market continued the upbeat trend for the third straight session on Friday. The Bank Nifty index climbed to a new lifetime high of 57,830.20. The Nifty 50 index finished 124 points higher at 25,709, while the BSE Sensex ended 484 points higher at 83,952. Such a positive trend on Dalal Street ahead of Dhanteras has boosted the morale of bulls.
Stock market outlook
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment has turned positive as the Nifty 50 index broke above the 25,500 resistance and extended its gains further. The 50-stock index is now set to touch 26,000 and 26,300 in the near term. One should maintain a stock-specific approach and look at those stocks that are looking strong on the technical chart.
Speaking on the outlook of the Indian stock market, Sumeet Bagadia said, “The Indian stock market mood has turned positive as the Nifty 50 index has decisively broken above the 25,500 hurdle. The 50-stock index has further extended its gains and closed above 25,700, signalling that the key benchmark index is heading towards the 26,000 and 26,300 levels, respectively. So, one should look at those stocks that are looking strong on the technical chart pattern.”
Sumeet Bagadia’s stock recommendations for Monday
Regarding stocks to buy on Monday, Sumeet Bagadia recommended three buy-or-sell stocks: Dr Reddy’s Laboratories, Tata Consumer Products, and HDFC Bank.
1] Dr Reddy’s Laboratories: Buy at ₹1255.90, Target ₹1340, Stop Loss ₹1210.
Dr Reddy’s Laboratories’ share price is currently trading at ₹1,255.90. It has been consolidating within a symmetrical triangle pattern on the daily timeframe, indicating a phase of accumulation before a potential directional move. The stock has been forming higher lows and lower highs, suggesting tightening price action that often precedes a breakout.
At present, the stock is trading near its key exponential moving averages (EMAs). Traders can look to buy at current levels, as if it manages to surpass and hold above its EMAs, it could move towards the higher zone of the pattern, indicating renewed buying interest. A successful breakout above the upper trendline of this formation would further strengthen the bullish outlook and trigger a strong upside move.
The RSI is currently placed around 49, signalling a neutral bias but showing early signs of recovery, hinting that momentum could build if price sustains above key moving averages.
In conclusion, a buy at current levels is recommended with a target of ₹1,340 and a strict stop loss at ₹1,210 to manage downside risk.
2] Tata Consumer Products: Buy at ₹1166, Target ₹1300, Stop Loss ₹1102.
Tata Consumer Products’ share is currently trading at ₹1,166 and exhibiting strong bullish momentum. The stock has recently broken out of a symmetrical triangle pattern and rebounded from lower levels, signalling renewed buying interest. It has taken solid support at the 50-week Exponential Moving Average (EMA) on the weekly chart and continues to trade above its 20-day, 50-day, and 200-day EMAs. This alignment of key moving averages across multiple timeframes underscores a well-established uptrend.
The recent breakout above the crucial resistance level of ₹1,150, accompanied by the formation of bullish candles, reflects a positive shift in market sentiment. Sustaining this momentum and surpassing the significant resistance at ₹1,200 could open the door for a near-term upside target of ₹1,300. On the downside, immediate support is seen at ₹1,133, while a stop-loss at ₹1,102 is recommended to manage risk effectively.
The Relative Strength Index (RSI) currently stands at 66.09 and is trending upward, indicating strengthening momentum without entering the overbought territory.
In conclusion, TATACONSUM presents a technically robust setup for short-term traders. With a favourable price structure, sustained bullish momentum, and supportive technical indicators, entering at current levels with a target of ₹1,300 and a stop-loss at ₹1,102 offers an attractive risk-reward opportunity.
3] HDFC Bank: Buy at ₹1002.55, Target ₹1075, Stop Loss ₹965.
HDFC Bank’s share price is currently trading at ₹1002.55. The stock has been consolidating within a wide range and has formed a double bottom pattern on the daily chart. Today, it has given a decisive breakout from this range, and sustaining above the breakout level could open the potential for further upside. Moreover, the price is trading comfortably above all key Exponential Moving Averages (20, 50, and 200-day EMAs), indicating strong upside momentum and alignment across short-, medium-, and long-term trends. The stock has also managed to close above its central resistance zone near ₹1000, and a sustained move above this level may act as a catalyst for an extended rally towards higher targets.
On the downside, immediate support is placed around ₹980, where accumulation has been observed, offering a cushion against short-term pullbacks. The RSI, currently at 75.12, reflects robust strength and indicates the potential for continued upward momentum.
Traders may consider buying around ₹1002.55 with a stop loss at ₹965 for a target of ₹1075, while ensuring disciplined risk management.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
