Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 21 April 2025 | Stock Market News

Buy or sell stocks: Following strong global markets’ bias, the Indian stock market ended higher for the fourth straight session on Thursday. The Nifty 50 index gained 414 points and closed at 23,851, the BSE Sensex surged 1508 points and closed at 78,553, and the Bank Nifty index went up 1172 points and closed at 54,290. In a holiday-truncated week, Nifty was up 4.48%, the highest weekly rise since the week ended 5th Feb 2021. All sectoral indices ended the day in the green, with Nifty Bank, Financial Services, PSU Banks, and Pharma sectors leading the gains.

While the benchmark indices saw substantial gains on the weekly expiry, the broader market indices underperformed. The Nifty Midcap 100 and Nifty Smallcap 100 indices gained a more modest 0.60% and 0.37%, respectively. The advance-decline ratio on the BSE remained positive for the fourth straight day at 1.59, indicating that advancing shares continued to outnumber declining ones.

Stocks to buy on Monday

Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market bias has turned strong after the Nifty 50 index broke above the 200-DEMA hurdle, which is placed at 23,400. Bagadia said the Nifty 50 index may soon touch 24,000. The Choice Broking expert recommended buying stocks that look strong on the technical chart pattern. Regarding stocks to buy next week, Sumeet Bagadia recommended these three shares: State Bank of India (SBI), Bajaj Finserv, and Grasim Industries.

1] SBI: Buy at ₹797.45, target ₹880, stop loss ₹757.

SBI’s share price is currently trading at ₹797.45. After witnessing a sharp decline of nearly 22% from its swing high, the stock entered a consolidation phase within a defined range. Recently, it has broken out of this range by forming a bullish Inverted Head and shoulder pattern on the daily timeframe—a classic reversal formation—signalling the potential beginning of a fresh upward move.

A noticeable increase in trading volumes supports the breakout, adding conviction to the bullish setup. If the SBI share sustains above the crucial ₹800 mark, it could further strengthen the bullish momentum and set the stage for an upside move toward the target of ₹880.

The Relative Strength Index (RSI) stands at 63.46 and is trending upwards with a positive crossover, indicating increasing strength and improving sentiment. From a moving average perspective, SBIN has convincingly rebounded from lower levels and has now surpassed all its key Exponential Moving Averages—short-term (20-day), medium-term (50-day), and long-term (200-day)—which further reinforces the bullish outlook.

Given the favourable technical structure and volume confirmation, traders may consider buying SBI shares at the current market price of ₹797.45, with a stop-loss set at ₹757 to manage risk. As long as the stock holds above its key breakout level and maintains momentum, it remains well-positioned to achieve the upside target of ₹880 soon.

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2] Bajaj Finserv: Buy at ₹@ 2035.30, target ₹2240, stop loss ₹1935.

Bajaj Finserv’s share is currently trading at ₹2035.30, hovering near its all-time high levels, and remains in a strong long-term uptrend. The share is consistently moving within a rising parallel channel, characterized by a clear structure of higher highs and higher lows, reflecting sustained bullish momentum.

During the daily timeframe, Bajaj Finserv shares have formed a strong bullish candle, signalling renewed buying interest and a potential continuation of the uptrend. If the stock manages to sustain above ₹2050, it could trigger the next leg of the rally, with an upside target of ₹2240.

The Relative Strength Index (RSI) is currently at 66.55, trending upward while staying below the overbought zone, indicating that there is still ample room for further upside. From a moving average standpoint, the stock is trading above all its key EMAs—short-term (20-day), medium-term (50-day), and long-term (200-day)—further validating the strength of the ongoing bullish trend.

Given the favourable technical structure and strength across multiple indicators, traders may consider buying Bajaj Finserv shares at the current market price of ₹2035.30, with a stop-loss at ₹1935 to manage downside risk. As long as the stock sustains above key breakout levels and maintains momentum, it remains well-poised to reach the ₹2240 target soon.

3] Grasim Industries: Buy at ₹2760.70, target ₹3050, stop loss ₹2620.

Grasim share price is trading at ₹2760.70, moving within a broad consolidation range over recent sessions. After hitting its record high, the stock experienced a throwback toward its demand zone, where it found strong buying interest and staged a sharp reversal, indicating renewed bullish sentiment.

Grasim share price action suggests a potential breakout from this wide consolidation range. A sustainable move above ₹2850 could confirm the breakout and pave the way for an upside target of ₹3050 in the near term.

The Relative Strength Index (RSI) is currently at 68.68 and trending upwards, indicating strengthening momentum while leaving some room before entering the overbought territory. Additionally, Grasim’s share price has recently bounced from all its key Exponential Moving Averages—short-term (20-day), medium-term (50-day), and long-term (200-day)—further supporting the positive outlook and signalling underlying strength in the trend.

Given the constructive setup and strong rebound from support levels, traders may consider buying Grasim shares at the current market price of ₹2760.70, with a stop-loss set at ₹2620 to manage risk. A confirmed breakout above the ₹2850 mark could open up further upside potential toward the ₹3050 target.

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 making any investment decisions.