Investor Advisory: Sumeet Bagadia Recommends Three Stocks for Monday Trading

Indian Equity Markets End Sharply Lower on Friday

The domestic equity benchmarks witnessed a sharp decline on Friday, May 29, after a late-session sell-off erased earlier gains. The Sensex and Nifty 50 traded in a narrow range for most of the day, amidst uncertainty over a potential US-Iran agreement. However, heavy profit-booking in the final hour dragged the indices sharply lower.

At close, the Sensex settled at 74,775.74, down 1,092 points or 1.44%, while the Nifty 50 ended 359 points, or 1.50%, lower at 23,547.75. The sharp decline was largely attributed to profit-taking ahead of the weekend, as reports suggested the US and Iran had reached an agreement to extend their ceasefire and reopen shipping through the Strait of Hormuz, subject to approval from US President Donald Trump.

Market Sentiment Hit by Weak Monsoon Forecast and Rising Food Inflation Concerns

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Sentiment was also hit by a downward revision in the monsoon forecast by the India Meteorological Department (IMD), which now expects rainfall at 90% of the long-period average (LPA). Concerns over deficient rainfall and the increasing likelihood of an El Niño weather pattern have raised fears of higher food inflation in the months ahead.

Technical Analysis Suggests Weakness in Short-Term Momentum

According to Sumeet Bagadia, Executive Director at Choice Broking, the daily timeframe shows a bearish candlestick pattern, indicating sustained selling pressure throughout the session. The close near the intraday low reflects weakness in short-term momentum and suggests that sellers remained dominant across the day.

Support and Resistance Levels

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From a technical perspective, immediate support is placed in the 23,200–23,250 range, while resistance is observed between 23,750 and 23,800 levels. The Relative Strength Index (RSI) stands at 43.37, indicating weakening momentum and a cautious undertone in the near term.

Volatility Index Surges

Moreover, the volatility index, India VIX, surged by 8.03% to close at 16.18, suggesting rising volatility and increased nervousness among market participants.

Stock Recommendations

Sumeet Bagadia recommended three buy-or-sell stocks for Monday:

L&T

Larsen & Toubro is showing strong signs of a bullish reversal after a sharp correction from its recent highs near the 4,440 zone. The stock has successfully held above the critical support band of 3,850–3,900 and is now attempting a meaningful recovery, currently trading around the 4,077 level.

Asian Paints

Asian Paints is displaying a compelling trend reversal after a prolonged and painful downtrend that had dragged the stock to a multi-year low of 2,115. Since that decisive bottom, the stock has been consistently forming higher highs and higher lows, reflecting a clear shift in market sentiment from bearish to bullish.

HCL Tech

HCL Technologies is showing early but encouraging signs of a trend reversal after enduring prolonged selling pressure that pushed the stock to a multi-month low of 1,103.40. The stock has recently delivered a meaningful breakout above a sideways trendline resistance that had been capping upside for several weeks.