Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 3 February 2025 | Stock Market News

Buy or sell stocks: Amid high volatility tracking the Union Budget 2025, the Indian stock market ended with a marginal loss after the end of the special session on Saturday. The Nifty 50 index ended 9 points lower at the 23,499 mark, the BSE Sensex finished marginally higher at 77,505, whereas the Nifty Bank index went off 64 points and closed at 49,522. However, the broad market witnessed strong buying interest among Dalal Street bulls. The BSE Small-cap index gained 2.12 per cent, while the BSE Mid-cap index went up 1.26 per cent.

Sumeet Bagadia’s stock picks for Monday

Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market mood is still sideways to positive despite the disappointing budget for Dalal Street. The Choice Broking expert said the 50-stock index has crucial support at 23,300. However, Sumeet Bagadia maintained that Dalal Street’s mood would become bullish only after the key benchmark index broke above the 24,000 mark on a closing basis. He suggested that investors sustain a stock-specific approach and recommended that stocks look strong on the technical chart.

Regarding buy or sell stocks for Monday, Sumeet Bagadia suggested buying these three shares: LT, Hero MotoCorp, and Tata Steel.

Buy or sell stocks for Monday

1] LT: Buy at ₹3458.25, target ₹3925, stop loss ₹3385.

Larsen & Toubro, or LT share price, is currently trading at ₹3,458.25, showing a strong reversal from lower levels after witnessing a sharp decline from its recent highs. The stock had been forming lower highs and lower lows on the daily chart, indicating a bearish trend. However, the recent bounce from lower levels and a strong bullish candle on the daily timeframe suggests renewed buying interest. A volume breakout further supports the price action, reinforcing the possibility of a trend reversal.

From a technical perspective, LT has rebounded from its support zones and is now trading above its short-term (20-day) and long-term (200-day) EMAs while hovering near its medium-term (50-day) EMA. A sustained move above these levels would confirm a trend reversal. Furthermore, the Relative Strength Index (RSI) is at 51.97, sharply trending upwards, signalling increasing bullish momentum. If the stock manages to sustain above ₹3,650, it could confirm a shift in trend, opening the door for further upside.

Considering the current technical structure, buying LT at ₹3,458.25 with a stop-loss at ₹3,385 presents a good risk-reward opportunity. The target remains ₹3,925, aligning with the stock’s recovery potential. Traders should monitor price action closely and manage risk effectively to capitalize on this potential trend reversal.

2] Hero MotoCorp: Buy at ₹4,390.90, target ₹4775, stop loss ₹4120.

Hero MotoCorp share trades at ₹4,390.90, giving a decisive breakout from a Rounding Bottom formation on the daily chart. The stock had previously faced sharp selling pressure, declining over the past two months before consolidating at lower levels. The recent breakout is supported by rising trading volumes, indicating strong buying interest and a potential shift in momentum.

From a technical standpoint, Tata MotoCorp share is trading above its short-term (20-day) EMA and is currently testing its medium-term (50-day) EMA. If the stock surpasses this level, it could move towards its long-term (200-day) EMA, further strengthening the bullish outlook. Additionally, the RSI is at 61.17 and trending upwards, signalling increasing momentum in favour of buyers. If the stock holds above ₹4,400, it could open the path for further upside toward ₹4,775, a key resistance zone.

Considering the breakout and strong technical structure, buying ₹4,390.90 with a stop-loss at ₹4,120 offers a good risk-reward opportunity. A successful breakout confirmation above ₹4,400 would reinforce the bullish trend, making ₹4,775 a likely target. Traders should closely watch price action and volume activity to gauge further strength in the stock.

3] Tata Steel: Buy at ₹133, target ₹150, stop loss ₹128.

Tata Steel shares are trading at ₹133, forming a strong bullish candle in the daily timeframe while breaking above its recent consolidation range. The stock has been trading within a falling parallel channel and recently witnessed a bounce from the lower levels of this channel, followed by a period of consolidation in a narrow range. This breakout and consistent trading volumes indicate increasing buying interest and a potential shift in momentum.

From a technical perspective, Tata Steel share price has surpassed its short-term (20-day) EMA and is now approaching its medium-term (50-day) EMA. A sustained move above this level could confirm further strength, allowing the stock to test its long-term (200-day) EMA. Additionally, the RSI is at 53.84 and trending upwards, signalling a build-up in bullish momentum. If the stock surpasses the ₹138 level, it could gain further traction and move towards the next key resistance at ₹150.

Considering the current price action and breakout confirmation, buying at ₹133 with a stop-loss at ₹128 presents a favourable risk-reward opportunity. A decisive close above ₹ ₹138 would further strengthen the bullish outlook, paving the way for an upside target of ₹150. Traders should monitor price action closely and ensure strict risk management while positioning for potential upside.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.