Buy or sell: Sumeet Bagadia recommends 3 stocks to buy on Monday – 17 February 2025 | Stock Market News

Buy or sell stocks: Extending losses to the eighth consecutive session, Indian stock market benchmark Nifty 50 ended in the red on Friday, February 14, amid persisting concerns over a trade war, foreign capital outflow and weak corporate earnings.

The Nifty 50 has declined 3.4 per cent in these eight sessions. The index looks oversold so there may be a relief rally. However, the underlying sentiment appears weak and experts believe the index needs to break above 23,300 to gain a positive momentum.

Sumeet Bagadia’s stock picks

Sumeet Bagadia, Executive Director at Choice Broking, believes the bias of the Indian stock market bias is weak as the Nifty 50 index slipped below the 23,000 mark decisively.

However, Bagadia highlighted that the frontline index witnessed a decent pullback after retesting 22,800 support for the third time in recent sessions.

“A decisive break above 23,300 would establish positive conviction,” said Bagadia.

Sumeet Bagadia recommended three stocks to buy on Monday: TCS, Reliance, and ICICI Bank.

Buy or sell stocks for Monday

TCS | Buy in cash at ₹3,934.85 | Target price: ₹4,100 | Stop loss: ₹3,800

TCS stock has been in a consistent downtrend, forming a lower low and lower high pattern, indicating sustained bearish momentum.

The recent rise from the support levels at ₹3,900 follows a long period of decline, hinting that things could improve if more buyers continue to support the stock.

The daily chart of TCS shows a pattern of lower highs and lower lows, indicating that every small rally has faced selling pressure, preventing the stock from breaking key resistance levels.

Currently, the stock is trading below its major moving averages—the 20-day, 50-day, and 100-day EMAs—which signals a bearish trend.

For a potential reversal, the stock needs to close above the 20-day EMA, which would be a positive sign.

A move above the 50-day EMA would further confirm strength. However, if TCS remains below these levels, it may continue to struggle and face resistance in moving higher.

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“The recent low around ₹3,900 is acting as a support level, where some buyers are stepping in. If TCS falls below this support, its downtrend could continue. But if it breaks above the resistance at the 20-day and 50-day EMAs, it might move toward ₹4,100, which would be a stronger recovery sign,” said Bagadia.

“Overall, the technical structure remains weak, and investors should remain cautious until a clear reversal pattern emerges. A suggested stop loss could be placed at ₹3,800 to limit downside risk, while the target is set at ₹4,100 for further movement,” Bagadia said.

Reliance Industries | Buy in cash at ₹1,217.25 | Target price: ₹1,300 | Stop loss: ₹1,175

Reliance share price is showing early signs of recovery after a prolonged downtrend.

The recent bounce from the ₹1,193 support level suggests some buying interest, but the overall trend remains weak unless it sustains above key resistance levels.

The stock is still trading below its major moving averages—the 20-day, 50-day, and 100-day EMAs—indicating that bearish momentum is intact.

A close above the 20-day EMA ( ₹1,247) would be an early sign of strength, while a move beyond the 50-day EMA ( ₹1,261) would further confirm a potential trend reversal.

However, failure to reclaim these levels may result in continued downside pressure.

“The recent low around ₹1,190 is acting as an important support zone, where buyers have stepped in to prevent further decline. If it falls below this support, it could resume its bearish trend. On the upside, a breakout above the 20-day and 50-day EMAs could push the stock towards the ₹1,260– ₹1,300 range, signalling a stronger recovery,” said Bagadia.

“To manage risk, a stop-loss at ₹1,175 is recommended, while the next upside target is set at ₹1,300, aligning with the key resistance near the 100-day EMA. Investors should closely monitor price action and volume to confirm any potential trend reversal,” Bagadia said.

ICICI Bank | Buy in cash at ₹1,260.10 | Target price: ₹1,333 | Stop loss: ₹1,212

ICICI Bank stock is currently trading around 1,260, having recently bounced back from support near ₹1,212, close to its 200-day EMA. This indicates the stock’s ability to maintain stability at these levels.

There is minor resistance near the ₹1,265 level, which closely aligns with the 50-day EMA. This level may act as a short-term hurdle, and if it fails to break above decisively, the price could consolidate or encounter selling pressure.

A breakthrough above this point might trigger further gains towards the target of ₹1,333 and potentially higher.

The Relative Strength Index (RSI) stands at 52.41, suggesting moderate strength without reaching overbought conditions. This leaves room for potential momentum building in the stock.

“ICICI Bank stock’s trend is seen as sideways to bullish, supported by various technical indicators, reinforcing a positive sentiment. To capitalise on potential price retracements, it could be wise to consider buying at the current market price of around ₹1,260. Implementing a stop loss at ₹1,212 is advisable to manage risks effectively, safeguarding investments against unexpected market shifts,” said Bagadia.

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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.