Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 24 February 2025

Buy or sell stocks: Following weak global market sentiments, the Indian stock market ended lower for the fourth straight session on Friday. The Nifty 50 index finished 117 points lower at the 22,795 mark, the BSE Sensex shed 424 points and closed at 75,311, whereas the Bank Nifty index lost 353 points and ended at 48,981. Sectoral performance was largely negative, with the Nifty Metal Index emerging as the sole gainer. 

The Auto, Healthcare, Pharma, and Realty sectors led the declines. Despite initial gains, broader markets witnessed significant intraday volatility. The Nifty Midcap 100 and Small-cap indices retreated more than 2% from their day’s highs, ending lower by 1.32% and 0.7%, respectively. Market breadth remained negative, with the BSE recording an advance-decline ratio of 0.75.

Sumeet Bagadia’s stock recommendations

Sumeet Bagadia, Executive Director at Choice Broking, believes that the overall Indian stock market bias is cautious, as the Nifty 50 index has closed in the crucial support range of 22,750 to 22,800. He said that the first few hours of trade on Monday would be crucial, as Nifty saving its current support would be crucial for market sentiments to remain cautious. He advised investors to look at technically strong stocks and suggested buying these three shares: IndiGo, Coal India, and Larsen and Toubro (LT).

1] IndiGo: Buy at ₹4510.75, target ₹4875, stop loss ₹4330.

IndiGo’s share price is currently trading at ₹4,510.75 and has recently shown a breakout from a Cup & Handle pattern, a bullish continuation formation. After a brief consolidation phase, the stock has resumed upward movement, bouncing from a strong support level. This rebound has been accompanied by consistent trading volumes, reinforcing the strength of the breakout.

IndiGo’s share price is currently trading above all its key moving averages after bouncing from its long-term Exponential Moving Average (EMA), which indicates a strong bullish undertone. The Relative Strength Index (RSI) is also 61.39, signalling a sideways-to-uptrend momentum. If IndiGo’s share manages to sustain above ₹4,575, it could gain further strength and move towards the higher target of ₹4,875 soon.

Given the strong technical structure, traders can buy IndiGo shares at ₹4,510.75, with a well-defined stop-loss at ₹4,330 to manage risk. As long as the stock holds above its support levels and maintains buying momentum, it remains well-positioned for an upward rally. However, traders should closely monitor price action near resistance levels and volume trends to confirm continued strength.

2] Coal India: Buy at ₹369.95, target ₹4410, stop loss ₹350.

Coal India share is trading at ₹369.95, showing early signs of a reversal from lower levels after a prolonged downtrend. The stock has been forming lower highs and lower lows on the daily time frame, but the recent price action suggests a potential shift in momentum. This pause in the downtrend and buying interest indicates the possibility of an upcoming recovery.

The Relative Strength Index (RSI) is at 47.92, having reversed from lower levels and trending upwards, signalling to strengthen bullish momentum. Coal India’s share price has surpassed its short-term Exponential Moving Average (EMA), and if it manages to break above its medium-term EMA, it could gain further strength and move toward testing its long-term EMA. If Coal India’s share price sustains above ₹385, it could trigger a move toward the ₹410 resistance level.

Considering the technical setup, traders can look to buy Coal India shares at the current price of ₹369.95, with a well-defined stop-loss at ₹350 to manage downside risk. If the stock continues to maintain its upward momentum, it holds the potential to test ₹410 in the near term. However, traders should monitor volume trends and key resistance levels to confirm strength further.

3] LT: Buy at ₹3315.10, target ₹3650, stop loss ₹3175.

LT share price currently trades at ₹3,315.10 and shows strong signs of reversal from lower levels after a sharp 20% decline. The stock has formed a strong bullish candle on the daily time frame, indicating renewed buying interest. This reversal is supported by a slight increase in trading volumes, strengthening the current momentum.

LT share price has been trading within a wide range, and this rebound has emerged from the lower boundary of that range, signalling a potential shift in trend. The Relative Strength Index (RSI) is at 45.03, moving upward after consolidation at lower levels, further confirming a strengthening bullish sentiment. If LT sustains above ₹3,350, it could continue its upward movement, aiming for higher levels.

Given the strong technical setup, traders can consider buying LT shares at ₹3,315.10, with a stop-loss at ₹3,175 to limit downside risk. If the stock maintains its momentum and breaks above resistance, it can reach ₹3,650 soon. However, traders should watch for sustained price action above key levels and increasing volume to confirm strength.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.