Stocks to Consider for Monday: Sumeet Bagadia Identifies Three Potential Buys

Indian Equity Benchmarks Extend Losing Streak for Second Straight Session

On Friday, 8 May, Indian equity benchmarks extended their losing streak for a second consecutive session, weighed down largely by sharp weakness in banking and financial counters. Investor sentiment remained cautious amid ongoing geopolitical tensions in the Middle East, prompting selective buying across sectors. Although Brent crude prices softened during the session, the global oil benchmark continued to hover close to the $100-per-barrel mark, keeping markets on edge.

The BSE Sensex closed 516 points lower, or 0.66%, at 77,328.19, while the NSE Nifty 50 slipped 151 points, or 0.62%, to settle at 24,176.15.

Sectoral Performance

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Financial stocks bore the brunt of the selling pressure, with the Nifty PSU Bank index emerging as the biggest laggard, tumbling 3.06%. Bank Nifty also ended sharply lower with a decline of 1.31%, while the Financial Services index dropped 1.66%. The Nifty Private Bank index lost 0.82%, and the Metal index shed 0.87%.

On the other hand, technology stocks offered some support to the broader market. The Nifty IT index advanced 1.21%, buoyed by buying interest in select large-cap IT names. Consumer Durables stocks also witnessed gains, with the index rising 0.69% by the close of trade.

Market Outlook

Sumeet Bagadia, Executive Director at Choice Broking, stated that on the daily timeframe, the formation of a bearish candlestick pattern indicates sustained selling pressure and moderation in bullish momentum.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

From a technical perspective, Bagadia said that the immediate support is placed in the 24,000–24,080 range, while resistance is observed between 24,330 and 24,400 levels. The Relative Strength Index (RSI) stands at 52.40, remaining above the midpoint of 50 but indicating weakening momentum.

He further added that the volatility index, India VIX, increased by 1.32% to close at 16.84, suggesting a mild rise in market uncertainty. In the derivatives segment, notable call writing was seen at the 24,200 strike, followed by 24,300, while significant put writing was observed at 24,200 and 24,000 levels, indicating a defined trading range for the near term.

Bank Nifty Outlook

According to the Choice expert, on the daily timeframe, the formation of a bearish candlestick pattern with the intraday high near the opening level indicates persistent selling pressure throughout the session.

From a technical standpoint, immediate support is placed in the 54,800–55,000 range, while resistance is seen in the 55,800–56,000 zone. The Relative Strength Index (RSI) stands at 48.56, slipping below the midpoint level of 50 and indicating weakening momentum with a bearish bias.

Stock Recommendations

Adani Ports

Buy ADANIPORTS in Cash @ 1760 SL @ 1685 TGT @ 1900 ADANIPORTS is maintaining a strong bullish structure and continues to trade near its lifetime high zone, indicating sustained buying momentum and strong market participation.

Torrent Pharma

Buy TORNTPHARM in Cash @ 4380 SL @ 4190 TGT @ 4650 TORNTPHARM is continuing to exhibit a strong bullish setup as the stock sustains near its lifetime high zone with steady price consolidation on the daily chart.

GMR Airports

Buy GMRAIRPORT in Cash @ 101.3 SL @ 97 TGT @ 108 GMRAIRPORT is showing a steady improvement in price structure after successfully breaking above a long-term descending resistance trend-line on the daily chart.