Stock Recommendations for Monday: Sumeet Bagadia Identifies Three Potential Buys

Indian Stock Market Update

Key Indices:

• Nifty 50 closed at 23,114, a gain of 112 points.
• BSE Sensex and Bank Nifty indices also ended higher, with the Bank Nifty closing at 74,532, a gain of 325 points.

Sectoral Performance:

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• Telecom, IT, metals, pharma, and PSU Bank stocks led the gains, rising 1–2%.
• Media, private bank, and realty sectors ended in the red.

Market Outlook:

The Indian stock market's undertone suggests profit booking at higher levels and a lack of sustained bullish momentum. According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 index has a solid support base in the 22,950–23,000 range. Breaking below this support could lead to further weakness in the market.

Resistance and Support Levels:

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• Immediate resistance for the Nifty 50 index is at 23,250–23,300.
• Solid support base forming in the 22,950–23,000 range.

Volatility:

The India VIX remained nearly flat, rising marginally by 0.04% to 22.81, indicating elevated volatility and persistent caution among market participants.

Stock Recommendations:

1. JSW Steel:
   • Buy at ₹1167.80
   • Target: ₹1225
   • Stop Loss: ₹1110
   • Exhibiting a sustained uptrend with strong support at key technical levels.
2. Dr Reddy's Laboratories:
   • Buy at ₹1298.90
   • Target: ₹1340
   • Stop Loss: ₹1250
   • Recently taken support from its 20-day exponential moving average, indicating short-term strength.
3. Reliance Industries Ltd (RIL):
   • Buy at ₹1414.10
   • Target: ₹1500
   • Stop Loss: ₹1350
   • Broken out of a range consolidation on the hourly chart, indicating sustained bullish momentum.