Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — Dec 9 | Stock Market News

Buy or sell stocks: Following the profit-booking trigger on Wall Street at record higher levels, the Indian stock market ended lower on Friday. The Nifty 50 index went off 30 points and closed at the 24,677 mark; the BSE Sensex shed 117 points and finished at 81,648, whereas the Nifty Bank index ended 110 points lower at 53,493. Cash market volumes on the NSE fell to ₹1.08 lakh crore. The broad market indices ended positively, even as the advance-decline ratio rose to 1.49:1.

Stocks to buy on Monday

Sumeet Bagadia, Executive Director at Choice Broking, believes the overall Indian stock market bias is positive, as the Nifty 50 index has broken above the 24,550 to 24,600 mark. The Choice Broking expert said the 50-stock index is poised to touch 24,800 in the near term. He said the frontline index may touch 25,200 once it breaks above 24,800.

Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy or sell stocks: Tata Motors, Axis Bank, and BPCL.

Sumeet Bagadia’s buy or sell stocks

1] Tata Motors: Buy at ₹816.80, target ₹901, stop loss ₹780.

Tata Motors share is trading at ₹816.80 after a notable correction over the past three months, following its record high. However, the stock now shows encouraging signs of a reversal from its key support levels, signalling a potential buying opportunity.

The daily chart shows the formation of a strong bullish candle, indicating renewed buying interest at current levels. This reversal is further validated by a significant increase in trading volumes, underscoring strong market participation. If Tata Motors’ share price is above ₹840, it can move further up to the target level of ₹901.

The Relative Strength Index (RSI) has reversed from the oversold territory and is currently at 51, trending upwards. This suggests improving momentum and the possibility of continued recovery in the near term.

Tata Motors’ share price has surpassed its short-term (20-day) EMA, indicating a shift in short-term sentiment. The next target could be its long-term (200-day) EMA, which might act as a potential resistance zone. Given these technical indicators, a long position in Tata Motors shares at ₹816.80 is recommended. Setting a stop-loss at ₹780 and a target price of ₹901.

2] Axis Bank: Buy at ₹1184.55, target ₹1300, stop loss ₹1130.

Axis Bank’s share price currently trades at ₹1184.55, having reversed from a key support zone. The stock has demonstrated strength at the lower boundary of a descending triangle pattern and is now attempting to break out of its consolidation range near this support area. The strong reversal from the lower levels of the descending triangle, supported by consistent volumes, indicates increased buyer interest. After consolidating within a narrow range near the support zone, the stock is now approaching the upper boundary of this range, which aligns with the descending triangle’s resistance.

The ₹1200 level acts as a critical resistance point, and a sustainable breakout above this level would confirm a descending triangle breakout, potentially paving the way for an upside move toward ₹1300.

The Relative Strength Index (RSI) is currently at 59.47 and trending upward, reflecting positive momentum and signalling the further potential for upward movement. Additionally, Axis Bank is trading above its key moving averages, including short-term (20-day), medium-term (50-day), and long-term (200-day), further reinforcing its bullish outlook.

Considering the current technical indicators and price action, Axis Bank’s share price appears well-positioned for a potential upward move at current levels. Traders may buy at ₹1184.55, with a stop loss set at ₹1130 to manage risk. The target price of ₹1300 aligns with the key resistance levels and offers a favourable risk-reward ratio, making this a promising trading opportunity.

3] BPCL: Buy at ₹@ 300.35, target ₹328, stop loss ₹287.

BPCL’s share price is currently trading at 300.35 and has broken out of a falling trend line on the daily chart, supported by a notable increase in trading volume. This breakout signals the potential for further upward momentum. The stock has rebounded strongly from its support zone and is now attempting to surpass its long-term (200-day) exponential moving average (EMA). Additionally, BPCL has recently crossed above its short-term (20-day) EMA, reflecting a strengthening bullish sentiment.

These technical developments indicate the potential for continued gains, provided the stock sustains above key levels and maintains consistent buying interest. The Relative Strength Index (RSI) has reversed from lower levels and is currently at 47.82, trending upward, which suggests building momentum and the likelihood of further price appreciation.

If BPCL’s share price holds above the critical ₹308, it could advance toward a higher target of ₹328. Given the current technical indicators and intense price action, initiating a long position at ₹300.35 offers a promising opportunity. A stop loss at ₹287 and a target price of ₹328 provide a favourable risk-reward ratio, aligning with the stock’s bullish outlook.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.