Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — Dec 2

Buy or sell stocks: Despite the stock market holiday in the US markets, Dalal Street heavyweights attracted strong buying on the last session of November 2024 and helped frontline indices to end higher. After opening with a marginal gain, the Nifty 50 index finished 208 points higher at the 24,122 mark; the BSE Sensex ended 699 points higher at 79,743, while the Nifty Bank index gained 117 points and closed at 52,023.

The Nifty Mid-cap 100 and the Small-cap 100 indices continued their upward journey for the sixth day on the trot, gaining by 0.16 per cent and 0.75 per cent, respectively. Advancing shares outnumbered the declining shares for six days in a row, where the advance-decline ratio stood at 1.44 on BSE. Adani group stocks — Adani Green Energy, Adani Energy Solutions, and Adani Total Gas jumped as much as 23 per cent following their inclusion in the F&O segment on November 29, 2024.

Sumeet Bagadia’s stock recommendations

Sumeet Bagadia, Executive Director at Choice Broking, believes that overall Indian stock market bias has improved as the Nifty 50 index has reclaimed the 21-DEMA support of 24,050. However, the Choice Broking expert maintained that the 50-stock index is facing a hurdle at 24,400, and hence, one should avoid taking bulk calls. The frontline index may see 23,66 to 23,550 levels on breaking the current support. So, day traders should maintain a cautious approach and follow a stock-specific strategy.

Sumeet Bagadia recommended buying the following three stocks on Monday: Mahindra & Mahindra, Tata Consumer Products, and ONGC.

Sumeet Bagadia’s stocks to buy

1] Mahindra & Mahindra: Buy at ₹2966.10, target ₹3250, stop loss ₹2850.

M&M’s share price currently trades at ₹2966.10, showcasing a notable uptrend from the support levels around ₹2800, near its 50-day Exponential Moving Average (EMA). The stock’s positive momentum is further confirmed by its positioning above the short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, reinforcing its technical resilience.

A significant breakthrough above the resistance at ₹3000, supported by robust volumes, underscores the stock’s strength. A sustained closure above this resistance could propel the stock to the next target of ₹3150. Traders and investors who entered at lower levels are advised to safeguard their positions by trailing stop losses near ₹2850, aiming for the target of ₹3150 and beyond.

The momentum indicator, Relative Strength Index (RSI), is currently at 52.77 levels, indicating positive momentum in the stock. For those considering fresh investments, purchasing at the current market price (CMP) is a viable option, targeting 3150, with a stringent stop loss set at ₹2850 levels to manage risk effectively.

2] Tata Consumer Products: Buy at ₹957.80, target ₹1030, stop loss ₹920.

Tata Consumer’s share price chart shows signs of potential upward momentum. After a recent pullback, the stock is currently trading around ₹957.8. However, it is trading below its 20-day EMA and the 50-day EMA, indicating that it must overcome these moving averages to signal a strong recovery. A breakout above these levels would support a bullish move toward the target of ₹1030.

Adding to the positive momentum, there has been a slight increase in trading volume, indicating growing market interest. If the price sustains above the 20-day and 50-day EMAs, it could strengthen the bullish case for a move toward ₹1030. Traders should watch for volume spikes and price action near these EMAs for confirmation.

New investors may look for buying opportunities near ₹950, with a stop-loss at ₹920. A breakout above the resistance from the EMA ₹970 would strengthen the case for short-term gains, potentially leading to a target of ₹1030 in the coming sessions.

3] ONGC: Buy at ₹256.70, target ₹270, stop loss ₹245.

ONGC’s share price chart shows some signs of recovery, but it’s still in a downtrend. Currently priced around ₹256.70, The recent rise from the support levels at ₹242 follows a long decline, hinting that things could improve if more buyers continue to support the stock.

ONGC shares are still trading below its major moving averages: the 20-day EMA, 50-day EMA, and 100-day EMA. Being below these levels usually signals a bearish trend, but if the stock closes above them, it might show the beginning of a turnaround. A close above the 20-day EMA would be a positive sign, and crossing the 50-day EMA would further strengthen this. However, the stock may struggle to go higher if it stays below these points.

The recent low of around ₹245 is a support level where some buyers are stepping in. If ONGC’s share price falls below this support, it could continue its downtrend. But if it breaks above the resistance at the 20-day and 50-day EMAs, it might move toward ₹270, which would be a more robust recovery sign.

A suggested stop loss (SL) of ₹245 could be placed to limit downside risk, while the target is set at ₹270, aligning with the resistance level near the 50-day EMA.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.