Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 13 January 2025 | Stock Market News

Buy or sell stocks: Despite strong buying in the IT stocks post-TCS Q3 results 2025, the Indian stock market ended in the red territory for the third day in a row. The Nifty 50 index ended 95 points lower at the 23,431 mark; the BSE Sensex finished 241 points lower at 77,378, whereas the Bank Nifty index nosedived 717 points at 48,785. The broader market sentiment remained bearish, reflected in the BSE’s advance-decline ratio of 0.26, showing declining shares substantially outnumbering advancing ones. The small-cap index recorded its steepest monthly decline, falling nearly 5.5% in just the last three sessions.

Sumeet Bagadia’s stock recommendations

Sumeet Bagadia, Executive Director at Choice Broking, believes bears have taken hold over the bulls as the Nifty 50 index has broken the crucial 23,500 support. The Choice Broking expert said the 50-stock index may try to test the 23,250 to 23,200 range in the near term. He advised a stock-specific approach and looked at those stocks that looked strong on the technical chart.

Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy or sell stocks: Tech Mahindra, JSW Steel, and Bajaj Finserv.

Stocks to buy next week

1] Tech Mahindra: Buy at ₹1705.60, target ₹1860, stop loss ₹1628.

Tech Mahindra share is trading at ₹1705.60 and remains in a long-term uptrend, consistently forming higher highs and lows over the past few months. The stock has shown a strong bullish candle on the daily chart, supported by a noticeable increase in trading volumes, indicating positive market participation.

Recently, Tech Mahindra shared that it witnessed some throwbacks from higher levels, moving towards the demand zones. However, it has reversed from these zones by forming a Double Bottom pattern, a classic bullish reversal signal. This pattern indicates a potential continuation of the upward trend, reinforcing the bullish outlook for the stock.

The RSI is currently at 49.27 and trending upwards with a positive crossover, further supporting the bullish sentiment. Additionally, TECHM has rebounded from its support levels and surpassed its short-term (20-day) and medium-term (50-day) EMAs, suggesting renewed buying interest and momentum in the stock.

Considering the technical setup, it is recommended that you buy Tech Mahindra shares at the current level of ₹1705.60. To manage risk effectively, a stop-loss can be placed at ₹1628, while the upside target is projected at ₹1860 based on the prevailing bullish indicators and price action.

2] JSW Steel: Buy at ₹900.10, target ₹980, stop loss ₹860.

JSW Steel’s share price has recently bounced from its crucial support zone and is currently trading at ₹900.10, indicating early signs of a potential reversal. The price action suggests buying interest at current levels, making it a favourable entry point with a proper risk-reward setup.

JSW Steel share is showing a positive RSI at 38.54, which has reversed from lower levels and given a positive crossover, supporting the possibility of upward momentum. However, JSW Steel share is still trading below its key moving averages across short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs. A breakout above these levels would confirm a sustained bullish trend.

If JSW Steel shares sustain above ₹925, they could extend their upward movement towards the next resistance level of ₹980, backed by technical strength and improving momentum indicators. Clearing this level would further validate the bullish outlook.

Considering the current price action and technical indicators, buying JSW Steel shares at ₹900.10 with a stop-loss at ₹860 and an upside target of ₹980 is recommended. This setup offers a balanced risk-reward ratio, making it a strategic trade opportunity while awaiting a breakout above key EMAs for further confirmation.

3] Bajaj Finserv: Buy at ₹1701.25, target ₹1875, stop loss ₹1620.

Bajaj Finserv share is currently trading at ₹1701.25, having recently experienced sharp selling from higher levels, followed by consolidation within a broad trading range. The stock has recently broken out of this consolidation phase but is still hovering near the breakout level, indicating the need for sustained momentum.

The reversal from lower levels was accompanied by a notable spike in trading volumes, suggesting strong buying interest. If the stock can sustain above the ₹1750 mark, it could pave the way for an upward move towards the 1875 level, supported by bullish price action and increased participation.

RSI is currently at 62.09, which indicates bullish momentum without being in the overbought territory, allowing further upside potential. Additionally, Bajaj Finserv’s share price is trading above all key moving averages, including short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, reinforcing the positive trend outlook.

Considering the current technical setup, buying Bajaj Finserv shares at ₹1701.25 presents a good opportunity. For effective risk management, a stop-loss should be maintained at ₹1620, while the upside target remains set at ₹1875, offering a favorable risk-reward ratio for positional traders.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.