The Indian stock market continued to trade within a narrow range on Friday last week, with both the Nifty 50 and BSE Sensex indices ending the session lower. The Nifty 50 closed down 34 points at 24,964, remaining below the psychological 25,000 mark. Meanwhile, the BSE Sensex dropped 230 points to settle at 81,381, and the Nifty Bank index declined by 358 points, closing at 51,172. In the broader market, the small-cap index increased by 0.44%, while the mid-cap index also rose by 0.44%.
Stocks to Buy on Monday
Sumeet Bagadia, Executive Director at Choice Broking, commented that the Indian stock market remains cautious, with Nifty 50 trading within a tight range of 24,900 to 25,300. He suggested that a bullish or bearish trend could emerge if the index breaks either side of this range, potentially resulting in a 200-point move.
For Monday, Bagadia recommends keeping an eye on Divi’s Laboratories, HCL Technologies, and Hindalco Industries.
Sumeet Bagadia’s Stock Recommendations:
1. Divi’s Laboratories
Buy at: ₹6,142.25
Target: ₹6,555
Stop Loss: ₹5,925
Divi’s Laboratories is showing a favorable outlook for the coming days. The stock recently broke out of a consolidation range of ₹5,300 to ₹5,450 and is now poised for further gains, targeting ₹6,555. The stock is trading above key Exponential Moving Averages (20-day, 50-day, and 100-day), reinforcing a bullish trend. The increase in trading volume and the stock’s position above the Volume Weighted Average Price (VWAP) of ₹6,085 also supports the upward movement.
Bagadia advises booking partial profits at current levels for those who entered earlier while trailing a stop loss near ₹5,925 to manage risk. For fresh entries, investors could consider buying on dips around ₹6,060, with a stop loss at ₹5,925.
2. HCL Technologies
Buy at: ₹1,839.65
Target: ₹1,950
Stop Loss: ₹1,777
HCL Technologies has shown strong momentum, currently trading at ₹1,839.65. The stock’s recent consolidation in the ₹1,775 to ₹1,815 range has set the stage for a potential upward movement. The stock is comfortably positioned above key EMAs (20-day, 50-day, and 200-day), indicating a positive trend. Additionally, the Relative Strength Index (RSI) at 65 suggests strong momentum.
Bagadia suggests using a trailing stop loss around ₹1,777 to protect gains, with a target of ₹1,950. The stock’s technical indicators are positive, pointing towards further upward potential.
3. Hindalco Industries
Buy at: ₹747.35
Target: ₹800
Stop Loss: ₹720
Hindalco Industries is trading at ₹747.35 and is in an upward trend after finding support near ₹715. The stock is trading above key EMAs, indicating technical resilience. A significant resistance level at ₹750 is in focus, and a sustained break above this level could drive the stock toward its target of ₹800.
Bagadia recommends a trailing stop loss around ₹720 for those holding the stock, while new investors can consider buying at the current market price, targeting ₹800 with a stop loss at ₹720.
Conclusion
As the Indian stock market remains in a cautious range, Bagadia’s recommendations focus on three stocks with strong technical setups. Divi’s Laboratories, HCL Technologies, and Hindalco Industries all show potential for upward movement, with defined entry points, targets, and stop-loss levels to help investors manage risk and maximize returns.
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