Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — August 12

Buy or sell stocks: Following positive global market sentiments on cooling US recession fears, the Indian stock market finished higher on Friday. The Nifty 50 index surged 247 points to 24,364, the BSE Sensex shot up 819 points to 79,705, and the Bank Nifty index finished 325 points higher at 50,482. Cash market volumes on the NSE were about one percent lower than the previous day. The mid-cap index rose more than the Nifty 50 index even as the advance-decline ratio moderated to 1.58:1.

Sumeet Bagadia’s stocks to buy on Monday

Sumeet Bagadia, Executive Director at Choice Broking, believes the Nifty 50 index managed to sustain above the crucial 23,900 support despite remaining range-bound through the week. The Choice Broking expert said that Nifty sustaining above 23,900 support signals conviction for a further rise in upcoming sessions next week. Bagadia said the 50-stock index is facing a hurdle in the 24,350 to 24,400 range. On breaching this resistance, Bagadia said the Nifty 50 index may touch the 24,800 mark soon.

Sumeet Bagadia’s stock recommendations for today

Regarding shares to buy on Monday, Sumeet Bagdia recommended three buy or sell stocks: Reliance Industries Ltd (RIL), Tata Motors, and Tech Mahindra (TechM).

1] Reliance Industries: Buy at ₹2948.60, target ₹3100, stop loss ₹2865.

Reliance’s share price is currently at ₹2948.60, reflecting a solid foundation established at the support of ₹2865. Additionally, RIL’s share price exhibits resilience by trading above its long-term (200-day) moving average, affirming its long-term strength. The stock has also crossed its previous two-day high, indicating strength in the stock.

While facing minor resistance at ₹3000, which is also near its 20 and 50-day EMA levels, a breakout beyond this threshold could pave the way for further upward momentum. Sustaining above ₹3000 may propel Reliance’s share price towards the next target of ₹3100, presenting a promising outlook for investors.

Reinforcing the positive sentiment, the Relative Strength Index (RSI) comfortably rests at 43.58, indicating a bounce from lower levels with increasing buying interest. The technical parameters collectively suggest a constructive environment for the RIL share price, encouraging potential bullish movements in the near term.

Based on the above technical analysis, we recommend buying Reliance shares at a CMP of ₹2948.60 with a short—to medium-term outlook, a stop loss of ₹2865, and targets of ₹3100.

2] Tata Motors: Buy at ₹1068.10, target ₹1155, stop loss ₹1025.

Tata Motors share exhibits strong bullish momentum, currently trading at ₹1068.10. The recent breakout above the crucial resistance at ₹1053, which is also its 20-day EMA level, is a significant technical development supported by robust trading volumes, reinforcing the strength of the stock. The breakthrough suggests a potential continuation of the upward trend after retesting the breakout levels, offering an optimistic outlook for investors.

Additionally, Tata Motors’ share price is trading above key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, further affirming its bullish stance. The momentum indicator, the Relative Strength Index (RSI), is at 54.16.

For traders, keeping an eye on the strong support near ₹1025, also close to its 50-day EMA, is advisable, as a breach of this level could signal a shift in sentiment. Overall, Tata Motors shares’ current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis, we recommend buying Tata Motors shares and the CMP of ₹1068.10 with a stop loss of ₹1025, with a target of ₹1155.

3] Tech Mahindra or TechM: Buy at ₹1506.70, target ₹1650, stop loss ₹1430.

Tech Mahindra’s share has exhibited resilience by rebounding from the critical support of ₹1430, showcasing its underlying strength. Currently trading at ₹1506.70, TechM share price positioning just above its short-term 20-day, medium-term, 50-day and long-term 200-day EMA levels signals optimism among investors. With a modest resistance observed at ₹1515, a sustained breakthrough above this level could trigger further upward momentum, potentially unlocking new opportunities for market participants.

The Relative Strength Index (RSI) stands at 54.36 and is on an upward trajectory, indicating an uptick in buying interest. This bullish sentiment surrounding TECHM suggests that the stock holds appeal as an investment opportunity. Investors may find confidence in the stock’s technical setup, particularly considering its recent bounce from support and the potential for continued upward movement if crucial resistance levels are breached.

Based on the above analysis, we recommend buying Tech Mahindra shares cautiously and keeping a watch on the stock if it falls below ₹1430, as this could negate the positive outlook. A short-term target of ₹1650 is achievable.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.