Buy or sell: Sumeet Bagadia recommends three stocks to buy next week | Stock Market News

Buy or sell stocks: Following weak global market sentiments ahead of Donald Trump’s swearing-in date, the Indian stock market ended lower for the third straight session on Friday. The Nifty 50 index ended 108 points lower at the 23,203 mark, the BSE Sensex nosedived 423 points and closed at 76,619, whereas the Nifty Bank Index crashed 722 points and finished at 48,556. Smaller stocks demonstrated resilience, with the Nifty Mid-cap 100 and the Nifty Small-cap 100 indices advancing 0.23% and 0.16%, respectively, marking their fourth consecutive session of gains. Market breadth remained positive, with the advance-decline ratio on the BSE holding steady at 1.1. Oil & Gas, Realty, Metals, and FMCG indices posted gains in sectoral performance, while IT, Banking, and Financial Services sectors faced the steepest declines.

Sumeet Bagadia’s stock picks

Sumeet Bagadia, Executive Director at Choice Broking, believes the overall Indian stock market bias is cautious despite the Nifty 50 index closing above the 23,300 mark. The Choice Broking expert said the 50-stock index is facing a hurdle at the 23,500 mark, and breaking above this resistance is important for improving Indian stock market sentiments. He advised investors to maintain a stock-specific approach and look at those stocks that look strong on the technical chart pattern.

Regarding buying or selling stocks for Monday, Sumeet Bagadia recommended buying these three shares: Coal India Limited, BSE, and Tata Steel.

Buy or sell stocks for Monday

1] Coal India Limited: Buy at ₹387.65, target ₹430, stop loss ₹368.

Coal India share is currently trading at ₹387.65 and is on the verge of breaking out of a falling trendline, supported by rising trading volumes. The stock experienced a sharp decline from its higher levels and has recently consolidated near the demand zone, suggesting a potential base formation. A strong bullish candle formed on the daily chart further strengthens the possibility of a breakout.

A successful breakout above the falling trendline could confirm a trend reversal, potentially leading to sustained bullish momentum. If the stock closes above ₹400 with volume confirmation, it could propel the price towards the next resistance near ₹430. This level aligns with historical price action and technical patterns, making it a significant upside target.

The RSI, currently at 50.02, has reversed from lower levels and is trending upwards, indicating a gradual improvement in momentum. Additionally, Coal India’s share price has surpassed its short-term EMA after bouncing from the support zone, signalling a positive shift in price behaviour. The stock could further test its medium-term and long-term EMAs, reinforcing a bullish outlook.

Considering the improving technical setup, buying Coal India shares at ₹387.65 is recommended, with a stop loss of ₹368 and a target price of ₹430. This setup offers a favourable risk-reward ratio, with confirmation hinging on a decisive breakout above ₹400.

2] BSE: Buy at ₹5998.75, target ₹6650, stop loss ₹5690.

The BSE share price currently trades at ₹5998.75, maintaining a strong long-term uptrend and hovering near its record-high levels. The stock has consistently formed higher highs and higher lows over the past few months, indicating a continuation of bullish momentum. Recently, the stock experienced a healthy throwback from higher levels, followed by consolidation near its demand zones, which appears to have stabilized the price action.

The BSE’s share price has successfully broken out of its consolidation range, suggesting renewed strength in buying interest. If BSE manages to sustain above the critical level of ₹6050, it could trigger further upside momentum, with the next potential target around ₹6650. This breakout scenario aligns with the continuation of the prevailing trend.

The RSI is currently at 67.49 and trending upwards, indicating strengthening bullish momentum without reaching overbought conditions yet. Additionally, BSE has rebounded from its medium-term and short-term EMAs and is currently trading above all its key moving averages, reaffirming a favourable price structure.

Considering the current technical setup, buying BSE at ₹5998.75 offers a favourable opportunity with a stop-loss at ₹5690 and an upside target of ₹6650. The stock’s trend strength and breakout confirmation are well-positioned for further gains.

3] Tata Steel: Buy at ₹130.28, target ₹146, stop loss ₹122.

Tata Steel share is trading around ₹130.28, following a correction from its recent highs. The stock is trading within a falling parallel channel and has recently reversed from the lower boundary of this channel, indicating potential support at these levels. A bullish engulfing candlestick pattern has emerged at the lower levels, signalling a possible short-term recovery from its key support zone.

The Relative Strength Index (RSI) currently stands at 39.79, recovering from oversold zones and trending upwards, indicating improving momentum. Tata Steel’s share price has also bounced back from its support levels and is trading near its short-term EMAs. If the price surpasses these EMAs, it could further extend the recovery towards its medium-term and long-term EMAs, strengthening the bullish outlook.

Buying Tata Steel at the current price of ₹130.28 is considered a good opportunity. A stop-loss set at ₹122 to manage downside risk effectively and an upside target of ₹146 are considered good opportunities, provided the stock sustains above its short-term EMAs and risk management strategies are followed.

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.