Market Analyst Suggests Three Stocks for Monday's Trading

Indian Equity Benchmarks Close Higher on Friday

Indian equity benchmarks closed higher on Friday, supported by strong buying in banking heavyweights such as ICICI Bank, HDFC Bank, and Axis Bank, as improving global sentiment lifted investor confidence. Optimism in the markets was also aided by expectations of progress in ongoing peace negotiations between the United States and Iran, which helped improve risk appetite across global equities.

Both benchmark indices traded in positive territory throughout the session, although the upside remained limited due to elevated crude oil prices and growing concerns that persistent inflationary pressures could force central banks to maintain a tighter monetary policy stance. The BSE Sensex ended the session at 75,415.35, gaining 232 points or 0.31%, while the NSE Nifty 50 settled 65 points, or 0.27%, higher at 23,719.30.

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Meanwhile, global crude oil benchmark Brent crude surged more than 2% to trade above $105 per barrel as uncertainty continued around the prospects of a final US-Iran peace agreement. Despite multiple diplomatic efforts, key disagreements between both sides remain unresolved, keeping energy markets volatile. On the currency front, the Indian rupee strengthened sharply against the US dollar. The domestic currency appreciated by 63 paise to settle at 95.73 per dollar.

Sumeet Bagadia, Executive Director at Choice Broking, noted that on the daily timeframe, the formation of an inverted hammer-like candlestick pattern indicates selling pressure near higher levels despite buying interest from lower zones, reflecting cautious optimism in the near term. From a technical perspective, immediate support is placed in the 23,400–23,450 range, while resistance is observed between 23,850 and 23,900 levels.

In the derivatives segment, notable call writing was seen at the 23,800 strike, followed by 24,000, while significant put writing was observed at 23,700 and 23,500 levels, indicating immediate support near lower levels with resistance continuing near higher strikes. The Relative Strength Index (RSI) stands at 47.19, indicating gradual improvement in momentum though the index still trades below the stronger bullish zone.

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Bank Nifty Outlook

According to the Choice expert, on the daily timeframe, the formation of a bullish candlestick pattern reflects sustained buying interest and improving sentiment in the banking segment. From a technical standpoint, immediate support is placed in the 53,400–53,500 range, while resistance is seen in the 54,000–54,500 zone. The Relative Strength Index (RSI) stands at 45.87, indicating improving momentum though the index still trades below the stronger bullish threshold.

Stock Recommendations

Sumeet Bagadia recommended the following stocks to buy on Monday:

• Wipro: Buy Wipro in cash around 200-203 SL at 196 TGT at 213. The stock has started showing signs of recovery and is forming a Double Bottom pattern, which is considered a bullish reversal signal.
• Eicher Motors: Buy EICHERMOT in cash at 6980 SL at 6750 TGT at 7200-7300. The stock witnessed short-covering activity after a sharp decline last week and has managed to hold above its 50-DEMA, which signals improving bullish strength in the near term.
• Nestle India: Buy NESTLE in cash at 1423 SL at 1380 TGT at 1465/1500. The stock continues to trade comfortably above its 50-day and 200-day moving averages, indicating strong long-term support and sustained institutional confidence.