Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — Oct 28

Buy or sell stocks: Following the diverged global market amid the Q2 results of the 2024 season, the Indian stock market ended lower for the fourth straight session on Friday last week. The Nifty 50 index went off 218 points and closed at the 24,180 mark; the BSE Sensex shed 662 points and closed at 79,402, whereas the Nifty Bank index finished 746 points lower at 50,787. Cash market volumes rose compared to the previous session. The Small-cap and the Mid-cap indices fell much more than the Nifty 50 index, reflecting the panic shown by the retail and HNI investors.

Sumeet Bagadia’s stocks to buy today

Sumeet Bagadia, Executive Director at Choice Broking, believes that the overall Indian stock market trend is weak as the Nifty 50 index has broken below the 24,700 mark. The Choice Broking expert said that the Nifty 50 index has immediate support at 23,900, whereas it faces resistance at the 24,600 to 24,650 range. Bagadia noted that the Dalal Street trend might further weaken if the 50-stock index breaks below the 23,900 mark.

Regarding stocks to buy today, Sumeet Bagadia recommended buying these three shares on Monday: ITC, TCS and Axis Bank.

Sumeet Bagadia’s stock recommendations today

1] ITC: Buy at ₹482.30, target ₹516, stop loss ₹466.

ITC share price is currently trading at ₹482.30, having recently rebounded from the support level of around ₹470 and reaching a high of ₹493.50. The daily chart indicates a close above the previous day’s candle, which signals a potential bullish reversal pattern. Rising trading volumes further strengthen this optimistic outlook, reflecting increased buying interest. If ITC sustains levels above the key ₹500 mark, it will likely continue its upward momentum, targeting a price of ₹516.

The Relative Strength Index (RSI) is currently at 39.64, suggesting oversold conditions that could present a buying opportunity. Additionally, the stock is trading above its 200-day Exponential Moving Average (EMA), adding weight to the bullish sentiment.

Given the current technical setup and momentum, the ITC share price presents an attractive buying opportunity with a target of ₹516. For risk management, a stop-loss should be set at ₹466 to protect against potential downside risks due to market fluctuations. This trade setup offers a favourable risk-reward ratio, making it a promising opportunity for traders looking to capitalize on the bullish trend. Adhering to proper risk management is essential to safeguard against unexpected market volatility.

2] TCS: Buy at ₹4057.55, target ₹4342, stop loss ₹3916.

TCS share price, currently trading at ₹4,057.55, has experienced significant selling pressure since the beginning of September, with a correction of approximately 12.75% from its all-time high. This pullback reflects a healthy retracement for the stock, which is currently consolidating above its 200 EMA on the daily chart. A close above ₹4,060 could signal a potential bullish reversal, with an initial upside target of ₹4,342 in the short term.

The Relative Strength Index (RSI) is at 32.55, indicating that TCS is in oversold territory, which may present a favourable buying opportunity for traders seeking to enter a bullish position. An increase in trading volume on bullish days around this support level would confirm the likelihood of a reversal.

Traders might consider entering at the current price of ₹4,057.55, targeting ₹4,342. To manage risk, a stop-loss order of ₹3,916 is recommended. Although this setup shows promise, it is essential to be cautious of short-term volatility. Effective risk management remains critical for navigating this trade.

3] Axis Bank: Buy at ₹1189.20, target ₹1300, stop loss ₹1120.

Axis Bank’s share price is currently trading at ₹1,189.35, showing signs of a reversal following its recent decline to a low of approximately ₹1,124. This rebound from lower levels indicates supportive buying interest, with bullish participants entering at these levels to increase prices. Notably, the stock trades above the 100-day and 200-day EMAs, underscoring underlying strength.

A close above the critical resistance level of ₹1,214 could pave the way for an upside target of ₹1,300. On the downside, immediate support is identified at ₹1,160. The Relative Strength Index (RSI) is currently at 51.22, trending upward, further reflecting growing buying momentum.

A stop-loss at ₹1,120 is advised to mitigate potential market reversalsfor effective risk management. In conclusion, given the technical indicators and current market conditions, the Axis Bank share price offers a promising buying opportunity for those targeting ₹1,300, with prudent risk management strategies in place.

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.