Sumeet Bagadia recommends Axis Bank, Dr Reddy’s Labs and Indus Towers for Tuesday trade

He noted that the Nifty 50 index extended its losing streak to five straight weeks, settling at 23,398, down over 2%, while the Sensex fell nearly 2.27% to close at 74,781. Persistent pressures from Brent crude near $105 a barrel and elevated US 10-year bond yields continue to weigh on sentiment, given India’s reliance on energy imports and inflation concerns.

Despite the bearish weekly trend, Bagadia observed signs of a potential trend reversal in the Nifty 50 on technical charts. He expects the index to trade in a range of 23,250–23,600 in the next session, with 23,250–23,300 acting as immediate support and 23,500–23,600 as resistance. A sustained move above 23,600 could signal further recovery if short covering persists.

Sector-wise, Nifty IT Services, Private Bank, and Media showed relative strength, while Realty, Metal, and Chemical lagged. Auto and Oil & Gas sectors also remained under pressure.

For Tuesday’s trade, with markets closed on Monday due to Ganesh Chaturthi, Bagadia advised buying Axis Bank, Dr Reddy’s Labs, and Indus Towers.

Axis Bank is consolidating near a multi-month rising trendline support, having closed at ₹1,246. The stock has seen steady accumulation between ₹1,209 and ₹1,232, with a Supertrend buy signal near the trendline suggesting a shift toward short-term bullishness.

Dr Reddy’s Labs closed at ₹1,165.50, trading below its 50-week EMA of ₹1,242 but finding strong support at its 200-week EMA near ₹1,102.80. This level is viewed as a critical demand zone that could form the base for a bullish reversal if the price sustains a bounce and clears intermediate resistance.

Indus Towers closed at ₹388, attempting a reversal from a prolonged consolidation zone. The stock found strong support near the ₹369.90–₹380.80 range, aligned with the 100-week EMA and a horizontal demand level. A breakout above downward trendline resistance indicates easing selling pressure and a shift in momentum toward buyers.

The recommendations are based on technical analysis and are intended for informational purposes only. Investors are advised to consult certified financial experts before making any investment decisions.